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The European Business Centre

Emirates REIT to acquire European Business Centre for $35.4m

DUBAI, 29 days ago

Emirates REIT (CEIC), the world’s largest Shari’a-compliant real estate investment trust has signed a deal to acquire the European Business Centre (EBC) in Dubai Investments Park (DIP), for Dh130 million ($35.4 million).

The Emirates REIT is managed by Equitativa Dubai.

Emirates REIT expects the transaction to generate an estimated internal rate of return (IRR) in excess of 10 per cent. Following completion of the acquisition, Emirates REIT’s total portfolio will cross Dh3 billion, comprising 10 properties across Dubai.

Located in the heart of Dubai’s industrial area, the European Business Centre is a Ground + 3 storey commercial building with a net leasable area in excess of 273,164 sq ft. It has a current occupancy rate of 87 per cent and a current passing income in excess of Dh20 million, a statement said.

The building comprises 101 corporate tenants, including Stantec International, UBC Businessmen Service and the German Emirati Business Centre.  

The 74,690-sq-ft retail area on the ground floor includes a variety of business-related services and convenience facilities, including Fresh Express. The building also has 600 basement car parking spaces, 24-hours security, and in-house facility management.

The location of the building in DIP is close to the Jebel Ali Free Zone and Port, Dubai World Central Airport and Dubai South and is well served by access to the Sheikh Zayed Road, Sheikh Mohammed Bin Zayed Road and the Emirates Road.

By 2020, a new Metro station is planned to be built on the adjacent plot as part of the Expo 2020 Dubai Metro expansion plan. EBC is also near hotels, educational facilities and a large number of residential units at the Green Community, the statement said.

Sylvain Vieujot, CEO of Equitativa Dubai, commented: “This is a prime commercial asset in Dubai Investments Park, secured at an exceptional price of Dh476 per sq ft. Upon completion of the transaction, the building will immediately enhance the REIT's cash flow and over the longer-term we expect significant capital appreciation, especially following the completion of the adjacent metro station.”

The acquisition of EBC is Emirates REIT’s second transaction in Dubai Investments Park. In September 2016, the REIT secured a lease on a 270,000 sq ft plot of land, on which it is building the British Columbia Canadian School (BCCS). The first phase of the new school is being delivered and opening is pending inspections by authorities.

In a separate announcement, the REIT today announced its H1 results, which saw its net rental income increase by 31 per cent year-on-year. - TradeArabia News Service




Tags: Dubai Investment Park | EBC | Emirates REIT |

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