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Tue 11 Mar 2014 11:21 AM

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UAE's first real estate investment trust aims to raise $135m in IPO

Emirates REIT, which has 10 properties valued at over $333m, is set to offer shares on the Nasdaq Dubai bourse

UAE's first real estate investment trust aims to raise $135m in IPO
DFM, Dubai investors, Dubai stock market, Dubai IPO

The United Arab Emirates' first real estate investment trust, Emirates REIT, said on Tuesday that it planned to raise at least AED500m ($135m) through an initial public offer of its shares on the Nasdaq Dubai bourse.

The company will use the proceeds for possible future acquisitions and investment in existing assets, Abdulla Al Hamli, chairman of its management board, told reporters without giving a firm time frame for the IPO.

The value of the company is not known yet and the IPO will be conducted through a book-building process. Nasdaq Dubai IPOs usually sell at least 25 percent of a company. Current shareholders will not sell their shares; new shares will be issued for the IPO.

Emirates REIT, which was formed in 2010 and complies with Islamic investment principles, appointed Shuaa Capital sponsor for the IPO while Shuaa and Emirates NBD will be joint bookrunners.

As of last December, the company had 10 properties comprising 1.2 million square feet of net leasable area; its total assets were valued at about $333m, it said.

Dubai Islamic Bank currently owns 30.9 percent of the company, two units of the Dubai Holding conglomerate own a combined 27.1 percent, Emirates NBD owns 4.5 percent, Egyptian investment bank EFG-Hermes has 4.2 percent and Dubai property developer Deyaar has 3.4 percent.