Dubai: Tecom Investments, a diversified conglomerate and a member of Dubai Holding, has paid Dh170 million for a 25 per cent stake in Emirates Real Estate Investment Trust.
The move comes at a time when real estate is available at rock-bottom prices — giving investors an opportunity to cash in.
"Under the partnership valued at Dh170 million, Tecom will obtain a 25 per cent share in Emirates REIT in addition to liquidity for pursuing new development opportunities," a statement said.
Emirates REIT, the UAE's first real estate investment trust, was established in November 2010 to offer investors a strategic market entry opportunity, as well as the professional management of held assets and a promise of long-term returns.
Tecom CEO Abdul Latif Al Mulla said: "While we will benefit from the liq-uidity and exposure to increasing values in a resurgent local property market, we will also help Emirates REIT take a step forward in its vision of launching an IPO [initial public offering].
New opportunities
"It is essential that dev-elopers come forward to form strategic partnerships with Emirates REIT to lay the foundation for a professionally managed real estate market in the UAE.
"As part of our synergy, we will continue to explore new opportunities with Emirates REIT."
With Emirates REIT, Dubai Islamic Bank and Eiffel Management have created an innovative and attractive Sharia-compliant real estate investment vehicle.
All investors — government and private — are encouraged to contribute their assets to Emirates REIT, which is keen to develop its portfolio mix and investor base prior to the planned IPO.
Abdullah Al Hamli, chairman of Emirates REIT management and CEO of Dubai Islamic Bank, said: "We are very pleased to have concluded this transaction with Tecom Investments.
"We welcome Tecom as a major shareholder in Emirates REIT and value the support of this pioneering and successful organisation for the REIT project.
"Emirates REIT was formed with the aim of bringing liquidity and professional management into the nascent real estate investment market. Our partnership with Tecom achieves this objective whilst extending our shareholder base."
