ENBD REIT, a Dubai-based sharia-compliant real estate investment trust run by Emirates NBD Asset Management, is set to refurbish a multi-million-dirham tower to boost occupancy levels.
The major revamp of Al Thuraya Tower in Dubai Media City, the fund’s largest asset by value, is part of the ongoing efforts to attract long-term tenants amid a sluggish environment caused by the coronavirus pandemic.
Valued at $77.11million, the property is one of the flagship assets of the company, accounting for 20 percent of ENBD REIT’s total portfolio value as of June 30, 2020.
Khaled Al Faheem, board and investment committee member of ENBD-REIT, said they are turning their attention to increasing occupancy and encouraging long-term leas agreements at their major asset.
“After various initiatives to navigate market headwinds, including a rent relief scheme and a hedging agreement to lower our cost of debt, this refurbishment represents a strategic investment to improve the attractiveness of the asset as a home for business,” Al Faheem said.
“Our intention is to foster long-term relationships with tenants across the portfolio, and we believe that these upgrades are necessary to delivering on our commitment to a first-class experience for occupants,” he added.
Savills has been appointed as the project manager and cost consultant for the refurbishment program, while Bluehaus Group will oversee the design and MEP works.
The project will include upgrading of the foyer and entrance of the building, as well as improving the lighting and tiling in corridors throughout the tower.
Shared bathrooms will have improved layout and styling, while extensive upgrades will be made to fire escape stairs, chillers and lifts, as well as the car park.
Part of the objective is to incorporate measures to ensure the building operates as a safe, virus-free environment for occupants, in light of the COVID-19 outbreak.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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© ZAWYA 2020