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Equitativa, Lycee break ground on new Dubai school

DUBAI, October 28, 2019

Equitativa, the largest REIT (real estate investment trust) manager in the Gulf region, has joined hands with French group Lycée Français Jean Mermoz to break ground on its new educational facility located in the heart of the residential area of Al Quoz in Dubai.
 
This comes as part of the development of Phase Two of the Lycee educational facility at an investment of Dh25 million ($6.8 million), stated the manager of Emirates REIT. 
 
On completion, the Lycee will see new facilities including a large gym, an auditorium and two indoor pools alongside classrooms that will be able to accommodate up to 1,250 students.
 
Lycée offers a French Curriculum programme taught in that language in conjunction with English and Arabic for pre-school, elementary and middle school students, it added. 
 
Owned by Emirates REIT, the new building will be immediately leased to Lycée Français Jean Mermoz upon completion, in a long-term agreement that extends to 25 years.
 
The new educational facility, together with the existing school, is expected to generate an estimated Internal Rate of Return (IRR) in excess of 11%. 
 
Equitativa said this development milestone at the school follows the landmark acquisition and immediate lease-back agreement with the Lycée Français Jean Mermoz last year. 
 
At the time, the Lycée simultaneously entered into a second Istisna agreement to fund the construction of facilities’ extension in two phases, it stated. 
 
The overall investment, including the development of two extensions, is budgeted to approximately reach Dh120 million ($33 million).
 
Emirates REIT Chairman Abdullah Al Hamli said: "The secondary school building which will be developed over a 60,000 sq ft area will house 24 additional classrooms and modern ancillary services, such as laboratories, gymnasium and an auditorium." 
 
"We anticipate this to be fully completed in less than 12 months, and believe this new project will strengthen Emirates REIT’s rental income, offering substantial upside valuation and securing long-term cash flows," he stated.
 
CEO Sylvain Vieujot said this comes as part of Emirates REIT’s acquisition strategy and expansion plans for 2020.
 
"It is a typical example of a successful partnership with school operators and how we assist them in their growth while providing Emirates REIT investors above benchmark returns," he stated.
 
Lycée Chairman Sultan Bin Obaid said: "We are thrilled to extend our partnership with Equitativa on this new development, which complements the educational offering to our existing students and presents an opportunity for bespoke secondary education to new students."
 
"This addition will provide us with a wing for secondary school students. For me, these 24 new classrooms for high school education offer continuity for students coming out of our elementary and intermediate school and give peace of mind to their parents looking at quality education for their children in an environment they recognise and appreciate," he added.-TradeArabia News Service



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