ENBD REIT, the Shariah-compliant real estate investment trust managed by Emirates NBD Asset Management, is formalising a restructuring, which could see the trust delisting from Nasdaq Dubai and become a privately held REIT.
The decision by the board of directors is subject to approval from shareholders.
“With the share price representing a significant discount to Net Asset Value (NAV) and current market conditions expected to prevail, we have undertaken a comprehensive review of strategic alternatives to maximize long-term value for shareholders,” Anthony Taylor, Head of Real Estate, ENBD REIT told Zawya.
“This process has led to the decision to proceed with a formal restructuring of the REIT, transitioning to a privately held investment vehicle subject to shareholders’ approval. We believe that the decision is in the best interest of shareholders who stand to realise greater value from holding equity in the REIT – valued according to NAV – on a fixed-term basis,” Taylor said.
ENBD REIT’s NAV stood at $254 million ($1.02 per share) as of the end of September 2019, slightly down from $255 million as of 30 June while its property portfolio reached $435 million, compared to $437 million a quarter earlier.
“To date, the portfolio has shown considerable resilience to market conditions, so we think that as we come out of the current cycle there will be value to be realised from our real estate holdings,” Taylor added.
ENBD REIT is also considering the deposit of its shares in Nasdaq Dubai Central Securities Depository (CSD), facilitating share transfers upon becoming a privately held REIT, a statement by the real estate investment trust said. The REIT has been listed on Nasdaq Dubai since March 2017.
ENBD REIT is in discussions with the regulator, the Dubai Financial Services Authority (“DFSA”), and other stakeholders, it said in a statement, adding that further details of progress with the restructuring, delisting and possible future share transfer mechanisms will be submitted for shareholders’ approval at an upcoming extraordinary general meeting. This will be announced on or before 23rd January 2020.
(Writing by Gerard Aoun; editing by Seban Scaria)
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