Dubai's Al Mal Capital REIT acquires NMC Royal Hospital real estate asset

Dubai: NMC Royal Hospital's real estate asset in Dubai Investments Park has been acquired by Al Mal Capital REIT, the DFM-listed real estate investment trust (REIT) said in a statement on Tuesday.

The landmark deal marks the first healthcare investment for Dubai’s first listed REIT. Al Mal Capital REIT is a subsidiary of Dubai Investments.

The statement does not reveal the acquisition price; however, the purchase brings AMCREIT’s total portfolio value to approximately Dh1.4 billion across six assets.

The 492,332 square-foot facility includes two hospital blocks and a fully leased commercial building. The hospital operates nearly 120 inpatient beds, extensive outpatient services, a pharmacy, and an emergency response unit.

One of Dubai’s premium healthcare providers, NMC, went through a major scandal and restructuring between 2019 and 2022; it has been operating as a restructured entity since March 2022.

Terms of the deal

NMC Healthcare will continue operating the hospital under a long-term lease agreement with approximately 17 years remaining. This provides stable, predictable income for AMCREIT's investors.

"Partnering with a leading operator like NMC Healthcare ensures a high-quality, income-generating asset with strong operational credentials," said Naser Al Nabulsi, Vice Chairman and CEO of Al Mal Capital.

"This transaction aligns with our strategic vision to enhance portfolio diversification, strengthen cash flow predictability, and deliver sustained value to our unitholders," he added.

NMC Healthcare was accused in 2019 of understating debt, triggering an investigation that discovered $2.7 billion in unreported debt. The London-listed company eventually disclosed over $4 billion in hidden debt, and was placed into administration in April 2020.

However, NMC's core businesses exited administration in March 2022, with 34 companies becoming subsidiaries of NMC OpCo Ltd under new management. The balance sheet was cleansed of approximately $6.7 billion in debt. The restructured entity is now the UAE’s largest integrated private healthcare platform