ENBD REIT Acquires First Education Asset in Dubai

Press release

Published August 7th, 2017 - 12:24 GMT

The deal marks ENBD REIT’s first acquisition of an education asset, as part of its strategy for diversifying its property portfolio into alternative real estate.

ENBD REIT said on Sunday it has it has acquired South View School in Dubai’s Remraam Community, and will construct a school at a total transaction value of Dh55 million.

The deal marks ENBD REIT’s first acquisition of an education asset, as part of its strategy for diversifying its property portfolio into alternative real estate.

“This is our first education asset, and an important step in the ongoing diversification of our portfolio away from purely office and residential properties,” Tim Rose, head of Real Estate at Emirates NBD Asset Management, said in a statement. “The UAE’s education sector continues to prosper and grow, and we are very proud to have become a part of that journey.”

South View School, once complete, will be operated by Interstar Education, part of Interstar Advisory Services, which currently runs the Victory Heights Primary School in Dubai Sports City.

Following acquisition and completion of the development, the ENBD REIT property portfolio’s total value will be $367 million (Dh1.35 billion), with a net asset valuation (NAV) of $292 million, or $1.15 per share.

Loan-to-value (LTV) ratio on gross asset value (GAV) is 29 per cent, with occupancy of 87 per cent across the portfolio.

Source: Gulf News

Background Information

ENBD REIT

ENBD REIT is a Real Estate Investment Trust established with the objective of generating a regular dividend income stream for investors, typically derived from income from investment properties, usually in the form of rent, with the additional opportunity for capital appreciation and increases in the value of the equity.

The Fund Manager, Emirates NBD Asset Management, is one of the leading asset managers in the GCC region with approximately US$4.2 billion assets under management as at 31st March 2017. It is a wholly owned subsidiary of Emirates NBD Bank PJSC, is based in the Dubai International Financial Centre (DIFC) and regulated by the Dubai Financial Services Authority (DFSA). The Fund Manager provides a wide range of investment solutions, from in-house managed funds to tailor-made discretionary solutions. It manages funds across a variety of asset classes, including MENA equity and global fixed income, global risk profiled solutions, real estate, and a wide range of Shari'a compliant instruments, structured to cater for diverse risk appetites.