Emirates Real Estate Fund taps Dh700m financing

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.