ENBD REIT plans to divest Dubai Silicon Oasis property

Asset constitutes 6% of portfolio value, 11.8% of prevailing net asset value

  
The Edge office building in Dubai Internet City is one of the assets within ENBD REIT’s portfolio Image used for illustrative purpose.

The Edge office building in Dubai Internet City is one of the assets within ENBD REIT’s portfolio Image used for illustrative purpose.

ENBD REIT

Dubai real estate investment trust ENBD REIT is considering the disposal of its property in Dubai Silicon Oasis, the company announced on Sunday. 

In a filing on Nasdaq Dubai, the company said its board of directors has received and accepted a letter of intent in respect to the said asset, which constitutes approximately six percent of the firm’s overall portfolio by value and 11.8 percent of the prevailing net asset value (NAV). 

ENBD REIT is the Shariah-compliant real estate investment trust managed by Emirates NBD Asset Management Limited.  

The company did not identify the property that it’s planning to divest. Its portfolio includes a couple of properties in Dubai Silicon Oasis, the Binghatti Terraces, which has an occupancy rate of 69 percent, and Souq Extra Retail Centre, with a 98 percent occupancy rate. 

The rest of its real estate assets are located in Dubai Healthcare City, Dubailand, Dubai Media City, Barsha Heights and Dubai Internet City. 

The company said the final terms of the property deal are now under negotiation and may conclude next month. 

“It is intended that definitive documents [related to the deal] be agreed in June 2021. Further details of the transaction, including the proposed use of proceeds resulting from this proposed disposal, will be announced… following the completion of the transaction,” ENBD REIT said. 

(Reporting by Cleofe Maceda; editing by Seban Scaria) 

Cleofe.maceda@refinitiv.com 

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© ZAWYA 2021


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