Dubai: Real estate investment trusts are adding more assets in the UAE, with ENBD REIT Ltd acquiring Dubai’s first purpose-built student residence by Global Student Accommodation in a deal valued at Dh120 million.
The sale and leaseback deal is the former’s first in the student accommodation segment, and part of a strategy to diversify its portfolio.
This is the first acquisition since the listing of ENBD REIT on Nasdaq Dubai in March. The transaction also sees GSA enter a seven-year lease.
“As GSA plans to grow its presence in Dubai and the UAE, we are looking forward to a strategic partnership that will allow both parties to support the growth of the emirates’ education sector,” said Tim Rose, head of Real Estate at Emirates NBD Asset Management.
The property, Uninest Dubailand, was built in 2016 and close to Dubai Academic City. It serves students attending more than 30 institutions across the city. Responsibility for managing the property will remain with GSA’s operations team, under the Uninest Student Residence brand.
The property features a 160,000 square foot floor area covering two basement levels, a ground floor and nine upper stories, with a total of 242 rooms offering 424 beds.
Following the acquisition, the ENBD REIT property portfolio now stands $349 million (Dh1.28 billion), with a net asset valuation of $297 million.
The loan-to-value ratio on gross asset value is 32 per cent, with occupancy levels of 86 per cent across the portfolio. It has eight properties across Dubai.
