Sale price represents slight premium to 31 March 2024 market value
Press Release
- Divestment in line with turnaround strategy for growth and portfolio optimisation
- Proceeds deployed to reduce debt with LTV down to 49.4%
Dubai, United Arab Emirates: ENBD REIT (CEIC) PLC (“ENBD REIT”), the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced the successful sale of the Remraam residential assets at a slight premium to market value at 31 March 2024.
The decision to divest this asset is in line with ENBD REIT’s turnaround strategy to optimize its portfolio with a focus on dividend growth via proactive asset management. The proceeds from this sale will be utilized to reduce debt, resulting in the LTV ratio dropping to 49.4% from 51%.
Samir Kazi, Head of Real Estate at Emirates NBD Asset Management and CEO of ENBD REIT, said:
“Following a comprehensive review of the portfolio, we have identified a clear turnaround strategy to unlock value for our shareholders and maintain our position as a reliable dividend payer. This divestment marks a significant first step to streamline our future-facing portfolio by improving the overall mix of the portfolio and strengthen our financial foundations by reducing our debt.”
The two Remraam residential towers, Al Ramth 57 and 59, are located in Dubailand and offer a total of 105 units with a net leasable area of 112,154 square feet. Acquired in September 2015, Remraam represents 4% of the REIT’s portfolio value.
As part of the sustainable turnaround journey, ENBD REIT continues to explore opportunities for strategic investments and portfolio rebalancing. Despite challenges posed by a high interest rate environment and pricing expectations, ENBD REIT maintains its commitment to delivering value to its investors through proactive asset management and prudent financial practices, driving long-term growth and sustainability.
For more information:
ENBD REIT (Investor Relations)
Mona Zahooruddin ENBDREITIR@EmiratesNBD.com
+971 (0) 4 509 3034
Company Secretary
Akeela Bharuchi cosecme@equiomgroup.com
Equiom Corporate Services
+971 (0) 4 446 3900
Instinctif Partners (Public Relations)
Arief Zulkifli
Arief.Zulkifli@instinctif.com
+971 (0) 58 906 3431
ABOUT ENBD REIT
ENBD REIT (CEIC) PLC (“ENBD REIT”) is a Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited (the “Fund Manager” – Regulated by the DFSA), listed on Nasdaq Dubai under ticker ENBDREIT. ENBD REIT is a closed-ended investment company that was incorporated by the Fund Manager to invest in a diversified Portfolio of Shari’a-compliant real estate assets in the UAE. ENBD REIT has an unlimited duration and was established in the DIFC by the Fund Manager on 18 July 2016 under the Companies Law with the name “Emirates Real Estate Fund Limited” and with registration number 2209.
The Fund subsequently changed its name to “ENBD REIT (CEIC) Limited” and later ENBD REIT (CEIC) PLC in line with the new DIFC Companies Law. ENBD REIT is categorised under DFSA law and regulations as a Public Fund, a Domestic Fund, an Islamic Fund, a Property Fund and a Real Estate Investment Trust (REIT). ENBD REIT has been established with the main investment objective of generating income returns and capital appreciation from real estate assets. ENBD REIT plans to achieve its objectives through the following strategies: (i) prudent acquisitions with a focus on achieving diversification; and (ii) active asset management and enhancement. For more information, visit: www.enbdreit.com
PORTFOLIO
Office:
Al Thuraya 1 (Dubai Media City)
A G+29-story high rise commercial tower, located at a prime location in Dubai Media City with views over Barsha Heights and Palm Jumeriah.
Burj Daman (DIFC)
Two and a half floors (the fund fully owns the 10th and 14th floors and half of the 15th floor) in the commercial portion of the tower in the DIFC.
DHCC 49 (Dubai Healthcare City)
G+5-story commercial complex located in the Dubai Healthcare City free zone.
DHCC 25 (Dubai Healthcare City)
G+6-story commercial tower located in the Dubai Healthcare City free zone
The Edge Building (Dubai Internet City)
A G+6-story fully leased, prime grade A office building recently constructed and located in the Dubai Internet City free zone. Oracle is the largest tenant occupying 85% of the office space.
Residential:
Arabian Oryx House (Barsha Heights)
A residential tower with 128 units in the free zone Barsha Heights, Dubai. Mainly comprises units of one, two and four-bed apartments.
Binghatti Terraces (Dubai Silicon Oasis)
A residential tower with 201 residential and 5 retail units in Dubai Silicon Oasis, constructed by developers with an established track record.
Alternative:
Uninest Dubailand (Dubailand)
A 424-bed student accommodation property located close to Dubai Academic City, serving students attending university across the city. 100% leased to global student accommodation provider, GSA.
South View School (Remraam)
A 132,000 sq. ft. British curriculum primary and secondary school operated by Interstar Education.
Souq Extra Retail Centre Phase 1 (Dubai Silicon Oasis)
Community centre in Dubai Silicon Oasis with over 36,000 ft² of gross leasable area, comprising 25 retail units fully let to blue-chip tenants.