Emirates REIT has sold the plot hosting Jebel Ali School for AED 233.5 million ($63.58) million, which it says represents 1.4 times the investment price.
The real estate investment trust under Equitativa Limited said in a Nasdaq Dubai statement that the price comprises both the property sale price, in a quantum equal to the last valuation undertaken by one of the REIT’s independent valuers, and the settlement of the school’s outstanding liabilities towards the REIT.
The REIT agreed with Jebel Ali School in June 2021 that the school would pay AED 20 million in rental arrears totaling AED 70 million.
In September 2021, Dubai International Financial Centre and the London Court of International Arbitration (DIFC-LCIA) found in the REIT’s favour for all outstanding rent costs.
Thierry Leleu, CEO of Equitativa, said: “We are delighted to have partnered with Taaleem and the Board of Governors at Jebel Ali School in closing this transaction for the benefit of Emirates REIT’s investors, Jebel Ali School and its students and faculty members.
“This transaction highlights our dual commitment to optimize return for our investors and support our tenants’ operations and growth. We look forward to redeploying the disposal proceeds in other opportunities.”
Jebel Ali School, previously located in Jebel Ali Village and called Jebel Ali Primary School, moved to its current location in Akoya, Dubai, in 2016, and now accepts pupils aged 3-18.
(Writing by Imogen Lillywhite; editing by Seban Scaria)