Dubai: ENBD REIT, the real estate investment trust managed by Emirates NBD Asset Management, on Wednesday said its largest tenant, Oracle, renewed its lease for another five years.
Situated in ‘The Edge’ building in Dubai Internet City, Oracle Systems occupies 76,422 sq. ft. across five floors. The Edge, valued at Dh257 million, is the second largest asset in the REIT’s portfolio.
“Securing and sustaining longer-term lease agreements is a core component of our strategy. This is particularly important for tackling the challenges created by Covid-19, a weakened oil price environment and a soft real estate market,” said Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management. “We are delighted that Oracle and other large tenants across our office portfolio continue to place their trust in ENBD REIT as both a fund and a landlord.”
With a combined value of Dh865 million, Al Thuraya Tower 1, Burj Daman, Dubai Healthcare City 49 and The Edge account for a significant portion of ENBD REIT’s portfolio, with recent leases on five-year terms or more equivalent to 23 per cent of total available office space renewed in these buildings.
The portfolio’s weighted average unexpired lease term rose 22 per cent to 3.9 years, the company said.
“Our priority now is to maintain momentum while building on our efforts to lease vacant units. For the remainder of 2020 we will focus on asset upgrade programmes across the portfolio, investing in enhancements to bolster value for tenants while making them more attractive to new and existing occupants,” said Taylor.