Equitativa Advances Gulf Region's Shari'ah Compliant REITs

Brand View: Introduction of REIT regulation signaled a new era of professionalisation of the real estate investments in the region
Equitativa Advances Gulf Region's Shari'ah Compliant REITs
Thu 29 Mar 2018 01:35 PM

Equitativa, the UAE based innovative asset manager and manager of Emirates REIT, the largest Shari’ah-compliant REIT in the  world, will discuss governance, transparency and liquidity that REITs offer to investors at this year’s Euromoney Saudi Arabia 2018 conference in Riyadh, which is organised in partnership with the Saudi Ministry of Finance.

The introduction of REIT regulation in a number of Gulf Countries that occurred in the past years signals a new era of professionalisation of the real estate investments in the region and new opportunities for investor willing to invest in Islamic financial products that provide stable returns.

Sylvain Vieujot, Chairman of Equitativa Group, said: “The introduction of professional, independently managed REITs is making real estate investments more accessible to retail and institutional investors. Our Emirates REIT is one of very few Shari’ah compliant products on the stock market globally. Equitativa is implementing international best practices to its REITs which proved to be in high demands with professional foreign investors as our last Sukuk transaction showed."

Equitativa, is an asset management group specialising in emerging markets. The group launched Emirates REIT in 2010. It is the first Shari’a compliant REIT in the GCC, focusing on Commercial and Educational sectors. Emirates REIT was listed on Nasdaq Dubai in 2014 and continuously grew its portfolio to AED 3.2 billion (USD 860 million), making it the largest Shari’a Compliant REIT in the world.

In December 2017, Equitativa introduced the first Sukuk from a REIT in the MENA Region for Emirates REIT. It obtained a credit rating and successfully tapped the international debt with this AED 1.2 billion (USD 400 million) issuance.

In 2017, Equitativa incorporated three more REITs, including The Residential REIT, investing solely in Residential Properties, with a current portfolio of AED 1.2 billion (USD 325 million).

“Investors and analysts are recognising our experience in assembling and managing real estate portfolios to international standards”, said Mr Vieujot.

Equitativa is expanding their activities to new markets, working closely with governments, financial institutions and developers to implement and list REITs and to bring foreign institutional investors.

Over the last seven years, Emirates REIT has gained recognition as one of the most successful funds in the GCC and has been awarded as the first REIT of the “Top 100 Real Estate Companies in the Arab World” and “2017 Best Real Estate Deal of the Year”. 

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