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 celebrated its One Year Anniversary since listing on Nasdaq Dubai, with a series of key milestones passed during the twelve months from March 2017. Senior members of the Nasdaq Dubai and ENBD REIT teams marked the occasion with a celebration in Dubai International Financial Centre (“DIFC”). 

On 23 March 2017, ENBD REIT admitted its ordinary shares to trading on Nasdaq Dubai following its initial public offering (IPO) under ticker symbol ENBDREIT. The offer to institutional investors, at a price of US$ 1.11/share, saw the stock climb in value to USD 1.17 on the first day of trading, with gross proceeds from the transaction amounting to USD 105 million. During the twelve months since listing, ENBD REIT’s property portfolio has grown by USD 146 million or 46% to reach USD 460 million, with the weighted average unexpired lease term (“WAULT”) across assets doubling to 3.5 years. Occupancy of the portfolio increased by 11% during the period, to reach a total of 88%, while ENBD REIT’s Loan to Value (“LTV”) ratio now stands at 36%, having grown from 28% since listing.  

Mr. Tariq Bin Hendi, Chairman of ENBD REIT, commented:

“At the time of listing on Nasdaq Dubai, the strong interest we received from GCC investors was a testament to the appetite that existed for our equity story, and of the appeal of the local REIT market. The listing has enabled us to embark on our strategic acquisition plan, and the team have been successful in securing a series of high quality income generating properties – across a range of asset classes. Our improved capital structure has allowed us to remain more fully invested and to focus on achieving long-term returns for our shareholders. The current acquisition pipeline remains active, and we are exploring further financing opportunities to support our ambitions to grow and diversify the portfolio. Nasdaq Dubai has proved to be the ideal exchange for ENBD REIT, providing access to international capital and promoting best practice standards of corporate governance among issuers.”

Use of proceeds: strategic acquisitions

In the last year, the proceeds from the offer have been deployed in a series of strategic acquisitions that have resulted in a re-profiling of ENBD REIT’s portfolio, which now comprises 63% office, 21% residential and 16% alternative assets. In total, ENBD REIT acquired four new assets: the Uninest student accommodation facility in Dubailand (USD 33 million); the under-construction South View School in Remraam Community (USD 15 million); The Edge office building in Dubai Internet City (USD 76 million); and Phase 1 of the Souq Extra Community Retail Centre in Dubai Silicon Oasis (USD 23 million), with an agreement to acquire Phase 2 on completion in the final quarter of 2018. All four of the acquisitions executed in 2017 were for assets that were 100% occupied on long-term leases.

Mr. Hamed Ali, Chief Executive Officer of Nasdaq Dubai, said:

“The success of ENBD REIT’s listing demonstrates the capacity of Dubai’s capital markets to strengthen and support the nation’s real estate sector, by enabling investors to gain exposure to it without directly owning property. As the UAE’s established exchange for REIT listings Nasdaq Dubai is delighted to have provided an effective platform for ENBD REIT’s capital raising in its IPO followed by trading in the secondary market. Through the global visibility that we provide, we look forward to continuing to support ENBD REIT’s engagement with regional and international investors as it pursues its development strategy.”   

ENBD REIT is a leading Shari’a compliant Real Estate Investment Trust, holding properties across Dubai’s office, residential and alternative asset classes. As at 31 December 2017, the Company’s Net Asset Value (NAV) was USD 300 million or USD 1.18 per share. In July 2017, ENBD REIT paid its first interim dividend since listing. The dividend payment amounted to USD 0.0382 per share, at an annualised equivalent yield of 7.1%. The semi-annual dividend distribution calendar has since been re-aligned to coincide with ENBD REIT’s financial year, which ends on 31 March.

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ABOUT ENBD REIT

ENBD REIT (CEIC) Limited (“ENBD REIT”) is a Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited (the “Fund Manager”), listed on Nasdaq Dubai under ticker ENBDREIT. ENBD REIT is a closed-ended investment company that was incorporated by the Fund Manager to invest in a diversified portfolio of Shari’a-compliant real estate assets in the UAE. ENBD REIT has an unlimited duration and was established in the DIFC by the Fund Manager on 18 July 2016 under the Companies Law with the name “Emirates Real Estate Fund Limited” and with registration number 2209. The Fund subsequently changed its name to “ENBD REIT (CEIC) Limited”. ENBD REIT is categorised under DFSA law and regulations as a Public Fund, a Domestic Fund, an Islamic Fund, a Property Fund and a Real Estate Investment Trust (REIT). ENBD REIT has been established with the main investment objective of generating income returns and capital appreciation from real estate assets. ENBD REIT plans to achieve its objectives through the following strategies: (i) prudent acquisitions with a focus on achieving diversification; and (ii) active asset management and enhancement. For more information, visit: www.enbdreit.com  

ABOUT NASDAQ DUBAI

Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, Sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts (REITS).

The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of Nasdaq Dubai is the Dubai Financial Services Authority (DFSA). Nasdaq Dubai is located in the Dubai International Financial Centre (DIFC). 

ENBD REIT PORTFOLIO

Office:

Al Thuraya 1 (Dubai Media City)

A G+29-story high rise commercial tower, located at a prime location in Dubai Media City with views over Barsha Heights and Palm Jumeriah.

Burj Daman (DIFC)

Two and a half floors (the fund fully owns the 10th and 14th floors and half of the 15th floor) in the commercial portion of the tower in the DIFC.

DHCC 49 (Dubai Healthcare City)

G+5-story commercial complex located in the Dubai Healthcare City free zone.

DHCC 25 (Dubai Healthcare City)

G+6-story commercial tower located in the Dubai Healthcare City free zone

The Edge Building (Dubai Internet City)

A G+6-story fully leased, prime grade A office building recently constructed and located in the Dubai Internet City free zone. Oracle is the largest tenant occupying 85% of the office space.

Residential:

Arabian Oryx House (Barsha Heights)

A residential tower with 128 units in the free zone Barsha Heights, Dubai. Mainly comprises units of one, two and four-bed apartments.

Binghatti Terraces (Dubai Silicon Oasis)

A residential tower with 201 residential and 5 retail units in Dubai Silicon Oasis, constructed by developers with an established track record.

Remraam Residential (Dubailand)

Two residential towers offering 105 units in mainly 1 & 2 bedroom apartments

Alternative:

Uninest Dubailand (Dubailand)

A 424-bed student accommodation property located close to Dubai Academic City, serving students attending university across the city. 100% leased to global student accommodation provider, GSA.

South View School (Remraam)

A 132,000 sq. ft. under-development primary school, scheduled to open in September 2018 and operated by Interstar Education.

Souq Extra Retail Centre Phase 1 (Dubai Silicon Oasis)

Community centre in Dubai Silicon Oasis with over 36,000 ft² of gross leasable area, comprising 25 retail units fully let to blue-chip tenants.

© Press Release 2018