• AED 772 million transaction

  • 165 residential units in Al Reem Island, Abu Dhabi received from Abu Dhabi Islamic Bank

  • 3 residential buildings with 285 units in Saadiyat Island, Abu Dhabi received from Arcapita and a large Saudi Institution

  • Portfolio reaches 1,069 residential units over 119,946 m2 for a total value of AED 1.3 billion

  • Portfolio now with assets in Abu Dhabi, Dubai and Ras Al Khaimah

The Residential REIT (IC) Limited, the first Sharia compliant residential REIT, incorporated in Abu Dhabi Global Market (ADGM) and managed by Equitativa (AD) Limited, today announced it has successfully completed transactions with Abu Dhabi Islamic Bank, Arcapita and a large Saudi institution for an aggregated value of AED 772 million.

Abu Dhabi Islamic Bank contributed 165 residential units located in three buildings in Marina Square on Al Reem Island in Abu Dhabi. Located close to ADGM, the new financial centre and close to Abu Dhabi corniche, those units offer a very good option for Abu Dhabi residents, with proximity to the main business locations on the Abu Dhabi main island, a very good connection and a spacious environment.

Arcapita and a large Saudi institution also contributed 3 buildings with a total of 285 residential units located in Saadiyat Beach Residences on Saadiyat Island in Abu Dhabi.  Saadiyat is one of the most sought after residential locations in the Capital due to its proximity to the Central Business District and the new Louvre Abu Dhabi.

As of 31 December 2017, the total value of the Residential REIT portfolio reached AED 1.3 billion.

Following the transaction, the REIT shareholders include:

  • National Bonds Corporation PJSC

  • Al Hamra Real Estate Development LLC

  • Abu Dhabi Islamic Bank

  • Arcapita Investment Management B.S.C.(c)

  • A large Saudi institution

  • A private investor

Sylvain Vieujot, Chairman of Equitativa, the REIT Manager, said:

“12 months ago, Equitativa launched The Residential REIT to take advantage of the current market conditions in the residential sector. This is our second REIT in the UAE to achieve critical size and attract key institutional investors and we are very pleased with the support we have received from our shareholders and from the Abu Dhabi Global Market. The Residential REIT has built an attractive and diversified portfolio providing the strong foundation needed to propel us to the next stage where we prepare for further growth and a future IPO. We trust that 2018 will be a great year for both our UAE REITs: Emirates REIT and The Residential REIT.”

Khamis Buharoon, Acting CEO of Abu Dhabi Islamic Bank said:

“The development of REITs is a positive step in the advancement of the financial and real estate sectors in the UAE. ADIB is glad to have had the opportunity to participate in this initiative at an early stage. We expect that The Residential REIT, being the first such REIT in the UAE, will benefit considerably from the growth potential of the UAE economy”.

Mohammed Chowdhury, Global Head of Financial Management at Arcapita Investment Management said:

“We are pleased to have partnered with Equitativa to establish one of the largest Shari’ah compliant residential real estate investment trust. Our objective is to create value for our investors and an exit mechanism through an IPO in the near future.”

Richard Teng, CEO, Financial Services Regulatory Authority of ADGM said:

“We would like to congratulate the Equitativa Group on its Residential REIT, adding to the investment landscape in the region. We have seen an increasing appetite for yield-focused business solutions such as REITs as an asset and investment class in the GCC, particularly in the Saudi Arabia and UAE markets. We are glad to be Equitativa’s preferred REIT regime and platform. As IFC, ADGM will continue to enhance its funds framework to support the industry with innovative and strategic structuring options and funds vehicles for their growth plans in this region and globally.”

The REIT Portfolio

  • Following these acquisitions, the Residential REIT's portfolio includes a total of 1,069 units:

  • 3 buildings with a total of 285 units in Saadiyat Beach Residences on Saadiyat Island in Abu Dhabi

  • 88 units in Burooj Views in Marina Square on Al Reem Island in Abu Dhabi

  • 77 units in Marina Heights I and Marina Heights II in Marina Square on Al Reem Island in Abu Dhabi

  • 371 units in Al Hamra Village, Ras Al Khaimah, comprising a mix of apartments, duplexes, townhouses and villas

  • Barton House 1, with a total of 112 units in Dubai’s Motor City, comprising studio and one-bedroom apartments

  • Eden Apartments with a total of 136 units in Dubai’s Motor City, comprising studios, one-bedroom and two-bedroom apartments.


-Ends-

For enquiries please contact:
Magali Mouquet
Equitativa Real Estate Limited
+971 4 405 7348
ir@equitativa.com

Rupert Young / Joudi Issa Brunswick
+971 4 560 9600
media@reit.ae

About Residential REIT
The Residential REIT (IC) Limited (“The Residential REIT” or the “REIT”) is the UAE’s first Sharia compliant residential Real Estate Investment Trust, managed by Equitativa (AD) Limited (“Equitativa”). It is incorporated in the Abu Dhabi Global Market (‘ADGM’) and regulated by the ADGM Financial Services Regulatory Authority. The Residential REIT was launched after the grant of an exclusive Emiri decree in October 2016 which permits current and future REITs and other collective funds managed by Equitativa to invest in Ras Al Khaimah onshore real estate.© Press Release 2018