The $76.2 million purchase ramps up bank's property portfolio
ENBD REIT, the Sharia-compliant real estate investment trust managed by Emirates NBD Asset Management, has purchased The Edge office building in Dubai Internet City for $76.2 million.
Ranked as a prime Grade A property, the seven-storey development is home to Oracle, Snapchat, and American education publisher McGraw Hill.
Acquired from boutique real estate firm developer SWEID & SWEID, the purchase utilises ENBD REIT’s existing Islamic debt facility. This means the property portfolio is running at a Loan-to-Value (LTV) ratio of 32 percent, and is projected to deliver a net yield of 6.6 percent.
The transaction follows the recent acquisition of a number of alternative assets by ENBD REIT, including the under-construction South View School in Dubai’s Remraam Community for $15 million and the Uninest Dubailand student accommodation building for $33 million. ENBD REIT’s total property portfolio value now stands at $447 million.
Commenting on the acquisition, Tim Rose, head of real estate at Emirates NBD Asset Management, said: “This is a strategic acquisition of a flagship building that will provide income and growth in the coming years, thereby providing us with flexibility to engage in a wider range of future investment opportunities, while at the same time delivering strong and consistent returns to shareholders.”