Tuesday, Mar 21, 2017

Dubai:

ENBD REIT, a Sharia compliant real estate investment trust managed by Emirates NBD Asset Management, has, following strong demand from GCC-based investors, set the price for the intended offer of its ordinary shares at $1.11 per ordinary share, it said on Tuesday.

The offer was well over-subscribed, receiving a better than expected response from regional investors, leading to a pricing nearer to the midpoint, at approximately a 7.5 per cent discount to net asset value (NAV), the asset management firm said in an emailed statement.

“The offer of ENBD REIT’s shares to trading on Nasdaq Dubai provides investors with the opportunity to invest in a leading real estate investment trust in the UAE with a high quality and diversified portfolio of income-generating assets in strategic locations across Dubai. ENBD REIT has demonstrated a strong track record of performance, consistent dividend distribution and a steady increase in NAV per share,” Tariq Bin Hendi, Director of ENBD REIT, said in a statement.

ENBD REIT intends start trading on Nasdaq Dubai on March 23.

ENBD REIT will issue 94,594,595 new shares to institutional investors at the Offer Price which represents approximately 37.2 per cent of ENBD’s REIT’s issued share capital.

Based on the Offer Price, ENBD REIT’s total market capitalisation at the time of Admission will be approximately $282.4 million.

The net proceeds of the Offer will be approximately $100.7 million. The Fund Manager intends to use the net proceeds raised to finance acquisitions of high quality, income-generating real estate assets and make improvements to existing properties as part of its active asset management strategy.

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