Dubai: Emirates Real Estate Fund has agreed to a $190.6 million (Dh700 million) Sharia-compliant finance facility with Emirates NBD, which would be used to restructure its balance sheet and creating a “more efficient capital structure”. EREF’s fund manager, Emirates NBD Asset Management, has earmarked a portion of the partially undrawn facility for future acquisitions. Over the last 24 months the fund invested over $163 million in real estate acquisitions, including Binghatti Terraces in Dubai Silicon Oasis, Arabian Oryx House in Al Barsha Heights, part of Burj Daman Office Tower in the DIFC and a residential building in Remraam (Dubailand). The partially undrawn facility is a five-year, profit-only Mudarabah facility with a 10 per cent repayment of principal in its fourth year. Post-utilisation and a full draw down of the facility, the loan-to-value ratio of the fund is expected to be below 50 per cent.
Emirates Real Estate Fund taps Dh700m financing
Which would be used to restructure its balance sheet and creating a ‘more efficient capital structure’