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| 12 April, 2017

Abu Dhabi Financial Group launches Etihad REIT

An aerial view of Dubai Marina is seen with the Atlantis hotel and the Palm Jumeirah, in Dubai.

An aerial view of Dubai Marina is seen with the Atlantis hotel and the Palm Jumeirah, in Dubai.

REUTERS/Matthias Seifert

ABU DHABI, 12th April, 2017 (WAM) -- Abu Dhabi Financial Group, ADFG, has announced that it is launching Etihad REIT, a Shariah-compliant real estate investment trust. The REIT comprises a seed portfolio of 10 income producing assets situated in the UAE.

Etihad REIT expects to raise further capital through an initial public offering, IPO, on a stock exchange in the UAE at an appropriate time and subject to regulatory approvals. SHUAA Capital and National Bank of Abu Dhabi have been appointed as lead financial advisors, global coordinators, and joint bookrunners for the planned IPO.

The ten properties contributed by Etihad REIT’s founding shareholders, which include Eshraq Properties, make up the mixed-use portfolio, and are situated in well-established locations across the UAE. The assets have a blended occupancy level of over 90 percent, and will be managed by an Abu Dhabi Financial Group company.

Commenting on the announcement, Fawad Tariq-Khan, Director, Investments at ADFG, said, "With the UAE real estate sector maturing while maintaining strong investor appetite, we believe that now is the perfect time to enter the market with Etihad REIT. Its existing portfolio is both well balanced, with the high occupancy rates providing impressive income returns. The REIT is highly diversified, offering exposure to four real estate sub-sectors across four Emirates, and we are actively seeking to acquire further assets across a range of sectors to continue to diversify the portfolio."

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© Copyright Emirates News Agency (WAM) 2017.