Abu Dhabi Financial Group (ADFG) is launching a Shariah-compliant real estate investment trust (REIT) comprising a seed portfolio of 10 income-producing assets situated in the UAE.

The new entity, Etihad REIT, expects to raise further capital through an initial public offering (IPO) on a stock exchange in the UAE at an appropriate time and subject to regulatory approvals.

Shuaa Capital and National Bank of Abu Dhabi have been appointed as lead financial advisors, global co-ordinators, and joint bookrunners for the planned IPO, said a statement from ADFG.

Etihad REIT is the most diversified real estate investment trust in the UAE today, with holdings in a variety of real estate sub-sectors including residential, retail, warehousing and staff accommodation.
 
The ten properties contributed by Etihad REIT’s founding shareholders, which include Eshraq Properties, make up the mixed-use portfolio, and are situated in well-established locations across the UAE.

The assets have a blended occupancy level of over 90 per cent, and will be managed by an ADFG company.

Fawad Tariq Khan, the director for investments at ADFG, said: "With the UAE real estate sector maturing while maintaining strong investor appetite, we believe that now is the perfect time to enter the market with Etihad REIT. Its existing portfolio is both well balanced, with the high occupancy rates providing impressive income returns."

"The REIT is highly diversified, offering exposure to four real estate sub-sectors across four Emirates, and we are actively seeking to aquire further assets across a range of sectors to continue to diversify the portfolio," observed Khan.

Etihad REIT’s experienced management team benefits from ADFG’s strong international track-record that includes managing more than $5 billion of assets globally, he added.-TradeArabia News Service