ENBD REIT announces sale of prime Dubai residential towers
RIYADH, 29 days ago
ENBD REIT, the shari'a compliant real estate investment trust of Emirates NBD Asset Management, has announced the successful sale of its Remraam residential towers - Al Ramth 57 and 59 - located in Dubailand at a slight premium to market value as of March 31, 2024.
This divesment move is in line with ENBD REIT’s turnaround strategy to optimise its portfolio with a focus on dividend growth via proactive asset management.
The two Remraam residential towers offer a total of 105 units with a net leasable area of 112,154 sq ft. Acquired in September 2015, Remraam represents 4% of the REIT’s portfolio value.
The proceeds from this sale will be utilized to reduce debt, resulting in the LTV ratio dropping to 49.4% from 51%, it stated.
Samir Kazi, the Head of Real Estate at Emirates NBD Asset Management and CEO of ENBD REIT, said: "Following a comprehensive review of the portfolio, we have identified a clear turnaround strategy to unlock value for our shareholders and maintain our position as a reliable dividend payer."
"This divestment marks a significant first step to streamline our future-facing portfolio by improving the overall mix of the portfolio and strengthen our financial foundations by reducing our debt," he stated.
As part of the sustainable turnaround journey, ENBD REIT continues to explore opportunities for strategic investments and portfolio rebalancing.
"Despite challenges posed by a high interest rate environment and pricing expectations, ENBD REIT maintains its commitment to delivering value to its investors through proactive asset management and prudent financial practices, driving long-term growth and sustainability," he added.-TradeArabia News Service
