Dubai: Emirates NBD Asset Management said on Sunday it plans to list its shares in its real estate investment trust on Nasdaq Dubai, the process of which it plans to complete by the end of the month, said Tariq Bin Hendi, director at ENBD REIT.
“We’re pleased to announce that ENBD REIT, managed by Emirates NBD Asset Management Limited, intends to admit its ordinary shares to Nasdaq Dubai for trading. This will be only the second real estate investment trust to be listed on a UAE stock exchange,” Bin Hendi said in a statement.
ENBD REIT is a real estate investment trust currently focused on the UAE and the fund has a consistent dividend payout history of between 5 to 7 per cent per annum.
The real estate assets of ENBD REIT have a total valuation of $314 million (Dh1.15 billion), with a net leasable area of 872,518 square feet, as of September 30, 2016.
Emirates NBD Asset Management plans to rise 100-$125 million through the offer, and plans to invest the proceeds in its real estate portfolio.
“The improved capital structure of ENBD REIT will mean there is less of a requirement to retain cash for the purposes of managing liquidity in the event of investor withdrawals, which are not permitted in a closed-ended vehicle of this type, but were a requirement in the open-ended structure. In the long-term, this should help ENBD REIT to achieve its objective of remaining more fully invested, subject to market and other conditions, with the goal of achieving improved long-term returns for its shareholders,” Anthony Taylor, fund manager, real estate at Emirates NBD Asset Management Limited, said.
ENBD REIT has a diversified asset portfolio, currently comprising seven income-generating properties in Dubai. The portfolio is diversified across office and residential assets in strategic locations. ENBD REIT is managed by Emirates NBD Asset Management Limited, a wholly owned subsidiary of Emirates NBD PJSC.