ENBD REIT, a Shari’a-compliant real estate investment trust based in the UAE, has announced that it has successfully completed the deployment of the $105 million in cash raised at the listing in March this year.

A trust managed by Emirates NBD Asset Management, ENBD REIT said its latest acquisition of The Edge building in Dubai Internet City also utilised its existing Islamic finance facility, meaning that the property portfolio is running at an efficient loan-to-value (LTV) ratio of 32 per cent.
 
Recent acquisitions by ENBD REIT have focused on a diverse range of asset types.

In May, the REIT acquired Uninest Dubailand, a student accommodation building, from GSA for $33 million. In August, the trust acquired its first development asset – South View School – in Dubai’s Remraam community at a transaction value of $15 million, thus taking the total portfolio value to $367 million.

ENBD REIT’s most recent acquisition of The Edge in Dubai Internet City saw a transaction value of $76 million push the total portfolio value up to $447 million, said the statement from the company.

Anthony Taylor, the fund manager, Real Estate, at Emirates NBD Asset Management, said: "We’re pleased to announce the complete deployment of the cash raised as part of the listing in March."

"Investors in REITs are looking to see efficient utilisation of funds in a portfolio of assets that will consistently generate income. Ours is such a product, and we are looking forward to growing both its footprint and value in the coming months and years," noted Taylor.

Following the deployment of the listing proceeds, ENBD REIT now holds a total of 10 assets across Dubai. The portfolio has an overall occupancy of 89 per cent, with a weighted average unexpired lease term (wault) of 3.5 years, said the statement.

Offices account for 67 per cent of the portfolio, residential buildings account for 22 per cent and alternative assets (including student accommodation and education) make up the remaining 11 per cent, it added.

ENBD REIT's last reported net asset valuation (NAV) was $292 million, or $1.15 per share, as at June 30, revealed Taylor.

“Additionally, we have tapped into our Islamic finance facility and have now achieved a more efficient capital structure, which was one of the main objectives of our listing. We continue to explore potential acquisitions funded through our existing finance facility, to further diversify the portfolio and improve our yield,” he added.-TradeArabia News Service