ENBD Reit, the Shariah-compliant real estate investment trust managed by Emirates NBD Asset Management, has announced its acquisition of The Edge office building in Dubai Internet City from developer Sweid & Sweid at a transaction value of Dh280 million ($76.2 million).
The 92,000-square foot prime grade A office building is home to Oracle, Snapchat and American education publisher McGraw Hill.
The acquisition utilises ENBD Reit's existing Islamic debt facility, meaning that the property portfolio is running at a loan-to-value (LTV) ratio of 32 per cent. The entire asset will deliver a gross yield of 7.4 per cent and a net yield of 6.6 per cent.
Tim Rose, head of real estate at Emirates NBD Asset Management, said: "We're pleased to announce our third acquisition since listing on Nasdaq Dubai in March. With a levered return of nine per cent on equity, this is a strategic acquisition of a flagship building that will provide income and growth in the coming years, thereby providing us with flexibility to engage in a wider range of future investment opportunities, while at the same time delivering strong and consistent returns to shareholders."
The transaction follows the recent acquisition of a number of alternative assets by ENBD Reit, including the under-construction South View School in Remraam at a value of Dh55 million and the Uninest Dubailand student accommodation building for Dh120 million. ENBD Reit's total property portfolio value now stands at $447 million.
- business@khaleejtimes.com
The 92,000-square foot prime grade A office building is home to Oracle, Snapchat and American education publisher McGraw Hill.
The acquisition utilises ENBD Reit's existing Islamic debt facility, meaning that the property portfolio is running at a loan-to-value (LTV) ratio of 32 per cent. The entire asset will deliver a gross yield of 7.4 per cent and a net yield of 6.6 per cent.
Tim Rose, head of real estate at Emirates NBD Asset Management, said: "We're pleased to announce our third acquisition since listing on Nasdaq Dubai in March. With a levered return of nine per cent on equity, this is a strategic acquisition of a flagship building that will provide income and growth in the coming years, thereby providing us with flexibility to engage in a wider range of future investment opportunities, while at the same time delivering strong and consistent returns to shareholders."
The transaction follows the recent acquisition of a number of alternative assets by ENBD Reit, including the under-construction South View School in Remraam at a value of Dh55 million and the Uninest Dubailand student accommodation building for Dh120 million. ENBD Reit's total property portfolio value now stands at $447 million.
- business@khaleejtimes.com
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