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.”For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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