DUBAI - DMCC – the world’s flagship Free Zone and Government of Dubai Authority on commodities trade and enterprise – has completed a real estate transaction comprised of a single plot of land sale with a self-storage facility on it to Musharaka REIT Fund, Musharaka Capital as fund Manager for Musharaka REIT is the representative of the Fund, for a total value of AED46 million (US$12.6 million).
The price was decided after the fund obtained evaluations from two independent real estate accredited valuers, said DMCC in a statement on Monday.
The plot of land acquired by Musharaka spans across approximately 5,400 sqm and is located in the DMCC’s and Jumeirah Lakes Towers business district overlooking Dubai’s Sheikh Zayed Road.
Musharaka’s acquisition also includes a self-storage building with a total built area of 13,860 sqm. The facility will be leased by Musharaka to the ‘The Box Self Storage Services Co.’ with an initial rental yield of 8.7 percent.
"Musharaka’s acquisition confirms the resilience of real estate in Dubai, and market confidence in DMCC. DMCC has premium plots for sale across Jumeirah Lakes Towers which are attracting significant interest from diverse range of investors and developers, who are all searching for strong rental yields," Paul Ashton, Executive Director – Property at DMCC, said.
In turn, Ibrahim Fahad Al-Assaf, CEO of Musharaka Capital, stated, "This cross-border transaction has given us a plot of land with an accompanying long-term rental yield in one of the largest free zones in the world. DMCC also has the right compliance and regulatory framework in place, making it a safe and attractive investment and the right option for us."
The Musharaka REIT fund, which is listed in the FTSE EPRA/Nareit Global Real Estate Index Series, is among a wide range of investment products offered by Musharaka Capital to support both individuals and corporations pursuing their financial goals.
It is considered one of the best REIT funds in the Kingdom of Saudi Arabia and in the region, which is differentiated by the diversity, quality, and high rental returns of its assets.
© Copyright Emirates News Agency (WAM) 2020.