ndicative price range set at $1.36 to $1.56 (Dh4.99 to Dh5.72)
Emirates REIT, the first Shariah-compliant regulated real estate investment trust incorporated in the Dubai International Financial Centre, today announced it has set the indicative price range for its intended offer at $1.36 to $1.56 (Dh4.99 to Dh5.72) per share.
The company said in a media statement that it will issue up to 110.29 million new shares and an additional 16.5 million shares subject to over-allotment.
The indicative price range implies a market capitalisation for Emirates REIT of between $356.2 million and $408.6 million (Dh1.3 billion and Dh1.5 billion) based on the REIT's issued share capital on listing (excluding the over-allotment option).
Shares of Emirates REIT will be made available to a number of institutional and professional investors in certain jurisdictions outside the US, it noted in a media statement.
"Emirates REIT offers investors a way of gaining exposure to a range of property classes in what we believe to be an attractive market with stable returns from solid income producing assets," said Abdulla Al Hamli, Chairman of the REIT Manager.
The management roadshow and bookbuilding process will start (March 23) and is expected to end on April 2, 2014. "It also offers access to an established financial track record, experienced management team and a well-defined growth strategy. We look forward to starting our roadshow today and hope to welcome interest from a wide range of local, regional and international institutional investors," Al Hamli added.
"We have built a diversified portfolio of properties in Dubai that has delivered consistent dividends to Emirates REIT's shareholders and a steady increase in net asset value per share since incorporation. We believe that UAE real estate is an attractive market, underpinned by solid growth drivers and we are keen to capitalise on the investment opportunities within the sector," said Sylvain Vieujot, Executive Deputy Chairman of the REIT Manager.
"We have a disciplined acquisition strategy and a shortlist of potential property targets and the proceeds from the proposed offering of shares in Emirates REIT will enable us to move forward with our plans," Vieujot added.
It is currently expected that the price at which the shares will be sold will be announced within a day or so of the end of the roadshow. Listing and trading of the Shares on Nasdaq Dubai are expected to commence sometime the following week.
The net proceeds will be used to fund future acquisition opportunities, and Emirates REIT Management (REIT Manager) has identified a shortlist of several potential real estate properties.
The REIT Manager also intends to use a portion of the proceeds to fund investment in existing assets.
Dubai-based Shuaa Capital has been appointed as Emirates REIT's sponsor and Shuaa and Emirates NBD Capital Limited are acting as joint bookrunners in connection with the offer of shares. Abu Dhabi Commercial Bank, Dubai Islamic Bank and EFG Hermes UAE are acting as co-lead managers.
For the year ended December 31, 2013, Emirates REIT had profit and total comprehensive income of $34.8 million, up from $10.9 million for the year ended December 31, 2012.
Emirates REIT's total assets were $333.2 million as at December 31, 2013, up from $212.6 million at the end of 2012. Its net asset value per share had risen to $137.80 at December 31, 2013, from $114.25 on December 31, 2012.
© Emirates 24|7 2014
