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- ENBD REIT acquired the 100% occupied asset in December 2017, adding to its portfolio of ‘alternative’ assets
- Phase 2 of the development expected to complete in H1 2019
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, has opened the Souq Extra Retail Centre in Dubai Silicon Oasis, at a ceremony attended by the REIT’s Chairman, Tariq Bin Hendi, and Saleh Saeed, Chairman of Souq Extra. ENBD REIT acquired Phase 1 of the development in December 2017, with 100% occupancy including blue chip tenants Carrefour Market, KFC, McDonald's and Starbucks.
ENBD REIT acquired the community retail centre at a gross yield of 9.9% and net yield of 8.0%. Phase 1 has 36,000 ft² of gross leasable area comprising 42 fully-let retail units. The REIT has also agreed terms to acquire Phase 2 of the development on completion in the last quarter of 2018, at an 8.0% net yield. Phase 2 will comprise a 77,000 ft² expansion with a floating glass roof utilizing sculptural and geographic forms to create a natural light environment transitioning between day and night atmospheres. The retail strategy focuses on core community services including a regional medical centre, a popular children’s nursery, a well-known fitness centre, activity-based entertainment concepts, premium F&B and fast-casual indoor and outdoor dining concepts.
Tariq Bin Hendi, Chairman of ENBD REIT, said:
“Souq Extra Retail Centre is an important asset for ENBD REIT, representing a fully-let and high-quality community centre in the heart of Dubai Silicon Oasis, an up-and-coming commercial and residential district. It has been our pleasure to work with the Souq Extra team, and we look forward to a long and fruitful relationship. In the last twelve months we have put a heavy emphasis on diversifying our portfolio into the ‘alternative’ asset class – from retail to student accommodation and education. This asset perfectly fits our prevailing diversification strategy.”
Saleh Saeed Lootah, Chairman of Souq Extra, commented:
“We are committed to enhancing urban areas by delivering efficient, healthy and resilient property outcomes on behalf of trusted partners such as Dubai Silicon Oasis Authority and ENBD REIT. Souq Extra has focused on building a ‘culture of winning behaviours’ through developing pillars of Sustainability, Innovation, Customer Service and Human Capital, where we put customers at the center of our decision making by critically asking ourselves three fundamental questions: What are the needs of our customers? Where are they currently being under-served? How can we serve our customer better? Souq Extra DSO Phases 1 & 2 is a perfect example where the team have listened and delivered.”
ENBD REIT holds a total of eleven properties across Dubai’s office, residential and alternative asset classes. As at 31st March 2018, the REIT’s total property portfolio value stood at USD 463 million, with a Net Asset Value (NAV) of USD 300 million or USD 1.18 per share, and total occupancy of 89%. ENBD REIT’s stock is traded on Nasdaq Dubai under ticker symbol ‘ENBDREIT’.
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