Dubai
Abu Dhabi Financial Group (ADFG) said on Wednesday it is launching Etihad REIT, a Sharia-compliant real estate investment trust. The REIT comprises a seed portfolio of 10 income producing assets situated in the UAE.
Etihad REIT expects to raise further capital through an initial public offering (IPO) on a stock exchange in the UAE at an appropriate time and subject to regulatory approvals, the ADFG said an emailed statement.
Etihad REIT is the most diversified REIT in the UAE, with holdings in a variety of real estate sub-sectors including residential, retail, warehousing and staff accommodation.
Shuaa Capital and National Bank of Abu Dhabi have been appointed as lead financial advisers, global coordinators, and joint bookrunners for the planned IPO.
“With the UAE real estate sector maturing while maintaining strong investor appetite, we believe that now is the perfect time to enter the market with Etihad REIT. Its existing portfolio is both well balanced, with the high occupancy rates providing impressive income returns. The REIT is highly diversified, offering exposure to four real estate sub-sectors across four Emirates, and we are actively seeking to acquire further assets across a range of sectors to continue to diversify the portfolio,” Fawad Tariq-Khan, Director, Investments at ADFG, said in a statement.
Etihad REIT’s experienced management team benefits from ADFG’s strong international track-record that includes managing more than $5 billion of assets globally.
ADFG has assets under management of $5 billion. Through its subsidiaries, ADFG is focused on growth and value creation across financial services and real estate.
