Emirates REIT sells prime Dubai office complex for $196m
DUBAI, October 1, 2024
Equitativa, the largest real estate investment trust manager in the GCC, has announced that one of its units - Emirates REIT - has entered into a deal with Tecom Investment for the sale of Office Park, a Grade A commercial asset in Dubai Internet City.
Office Park, which Emirates REIT has owned since 2012, consists of five interconnected blocks and boasts a gross leasable area (GLA) of 370,761 sq. ft.
With its extensive floor plans, the property has proven to be highly attractive to global companies and currently enjoys an 88% occupancy rate, said a statement from Emirates REIT.
The agreed sale price of AED720 million ($196 million) represents a substantial premium over the property's Fair Valuation as of June 30, 2024, it added.
A Dubai-based real estate investment trust, Emirates REIT invests principally in income-producing real estate in line with Shari'a principles. It currently owns a well-balanced portfolio of eight assets in the commercial, education and retail sector.
Emirates REIT said the transaction is pending approval from shareholders at the Extraordinary General Meeting (EGM), scheduled to take place later this month.
If the transaction is approved at the EGM, a portion of the net sale proceeds will be used to partially redeem the secured sukuk certificates issued on December 12, 2022, in line with the terms and conditions, it stated.
Following the recent sale of Trident Grand Mall in July, this transaction is part of Emirates REIT’s ongoing de-leveraging strategy, taking advantage of current favorable market conditions, it added.-TradeArabia News Service
