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|20 November, 2017

ENBD REIT Announces Portfolio Occupancy Growth

Dubai, United Arab Emirates - ENBD REIT (CEIC) Limited (“ENBD REIT”), the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited (the “Fund Manager”), has announced strong occupancy growth during its third quarter across a number of its assets. Occupancy growth within the portfolio has been particularly robust for ENBD

ENBD REIT Announces Portfolio Occupancy Growth

· Strong results for key asset classes including affordable residential and office

· ENBD REIT's leasing strategy has also delivered increased retail income for properties

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Dubai, United Arab Emirates - ENBD REIT (CEIC) Limited (“ENBD REIT”), the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited (the “Fund Manager”), has announced strong occupancy growth during its third quarter across a number of its assets. Occupancy growth within the portfolio has been particularly robust for ENBD REIT’s affordable residential and office properties.

Binghatti Terraces, an affordable residential building in Dubai Silicon Oasis, has reached 88% occupancy so far, this quarter, up from 70% at the end of the September 2017. The building generated close to 10% of its rental income from retailers, which include Carrefour and Cupaghawa. Other portfolio occupancy growth highlights include achieving 92% occupancy in both Dubai Healthcare City (“DHCC”) properties, with DHCC 25 up from 85% in the previous quarter, and DHCC 49 up from 83%. Income from retailers leasing premises within the assets was also strong, with DHCC 49 generating 18% of its income from retail tenants including Costa Coffee and Al Manara Pharmacy, and DHCC 25 generating 11% of its income from retail tenants including Domino’s Pizza and Subway.

Anthony Taylor, Fund Manager, Real Estate at Emirates NBD Asset Management, commented:

“ENBD REIT’s portfolio occupancy growth thus far this quarter has been driven, in part, by strong demand for well-managed office space and affordable residential property in convenient locations. Our proactive asset management philosophy has directly benefited tenants, which has supported improved occupancy. Tenants can clearly see the benefit of leasing premises owned and managed by ENBD REIT, because they are situated in high quality buildings, where a high level of service is delivered by the facilities management provider. Competitive lease terms and added incentives have also been important for boosting occupancy across the portfolio.”

ENBD REIT’s total property portfolio value stands at USD 434 million (AED 1.6 billion), following its October acquisition of The Edge in Dubai Internet City. The REIT’s two assets in Dubai Healthcare City, widely leased by tenants such as clinics and medical equipment providers, has delivered particularly strong occupancy in 2017. Having raised USD 105 million from listing on Nasdaq Dubai in March 2017, the Fund Manager’s growth strategy is to expand its portfolio across asset classes, including ‘alternative’ properties. Within this category, ENBD REIT recently acquired both the Uninest student accommodation facility in Dubailand and the under-development South View School in Dubai’s Remraam community. All the acquisitions made by ENBD REIT this year have been 100% occupied on long term leases, in line with its growth strategy.    

In October 2017, ENBD REIT announced that it had fully invested the proceeds it raised by listing. ENBD REIT’s Net Asset Value (NAV) on 30th September 2017 totalled USD 295 million.

-Ends-

© Press Release 2017

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