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Sunday, Feb 05, 2017
Dubai: The UAE’s first Real Estate Investment Trust (REIT) featuring only residential properties has come into being, with a “seed portfolio” of Dh418 million ($113 million). The Residential REIT’s founding shareholders — Al Hamra Real Estate Development and National Bonds Corporation — contributed a portfolio of income-producing residential units.
The former contributed 371 units at the Al Hamra Village, Ras Al Khaimah. The portfolio comprises 472,250 sq ft of net leasable area. It has a strong mix of both private tenants and corporate tenants with varying tenures. National Bonds contributed a building with 112 units, collectively known as “Barton House” in Motor City. These units comprise a total of 86,239 square feet of net leasable area.
The fund is the second REIT in the UAE after Emirates REIT Ltd., also launched and managed by the Equitativa Group. Emirates REIT is listed on Nasdaq Dubai with a Dh2.8 billion portfolio of office buildings, schools and retail assets.
The contributed properties have 95 per cent occupancy and a value of Dh418 million. An additional property valued at Dh99 million has already been secured.
The Residential REIT is incorporated in Abu Dhabi Global Market. It is a Sharia-compliant and distributes at least 80 per cent of its net income to shareholders. Equitativa expects to raise further funds allowing the REIT to build-up a large portfolio in order to prepare for an IPO.
According to Sylvain Vieujot, Chairman of Equitativa, “We believe this is the right time to enter the residential market and launch the Residential REIT. Residential yields are attractive in the current environment and are expected to provide medium term upside. There continues to be significant interest in REITs across the region from both institutional and private investors.”
Staff Report Gulf News 2017. All rights reserved.
Dubai: The UAE’s first Real Estate Investment Trust (REIT) featuring only residential properties has come into being, with a “seed portfolio” of Dh418 million ($113 million). The Residential REIT’s founding shareholders — Al Hamra Real Estate Development and National Bonds Corporation — contributed a portfolio of income-producing residential units.
The former contributed 371 units at the Al Hamra Village, Ras Al Khaimah. The portfolio comprises 472,250 sq ft of net leasable area. It has a strong mix of both private tenants and corporate tenants with varying tenures. National Bonds contributed a building with 112 units, collectively known as “Barton House” in Motor City. These units comprise a total of 86,239 square feet of net leasable area.
The fund is the second REIT in the UAE after Emirates REIT Ltd., also launched and managed by the Equitativa Group. Emirates REIT is listed on Nasdaq Dubai with a Dh2.8 billion portfolio of office buildings, schools and retail assets.
The contributed properties have 95 per cent occupancy and a value of Dh418 million. An additional property valued at Dh99 million has already been secured.
The Residential REIT is incorporated in Abu Dhabi Global Market. It is a Sharia-compliant and distributes at least 80 per cent of its net income to shareholders. Equitativa expects to raise further funds allowing the REIT to build-up a large portfolio in order to prepare for an IPO.
According to Sylvain Vieujot, Chairman of Equitativa, “We believe this is the right time to enter the residential market and launch the Residential REIT. Residential yields are attractive in the current environment and are expected to provide medium term upside. There continues to be significant interest in REITs across the region from both institutional and private investors.”
Staff Report Gulf News 2017. All rights reserved.
