Dubai: The fund manager of Emirates REIT, the Dubai-based property fund, has scored its second breakthrough in recent days. Equitativa has resolved its “longstanding” dispute with Jebel Ali School regarding rental payments.
As a first step, Jebel Ali School has agreed to pay Emirates REIT Dh20 million (out of a total of Dh70 million in arrears) towards its outstanding dues. The parties have also agreed to work together along with an external advisor, to find a permanent solution for the "outstanding and future rent" by Jebel Ali School. (The agreement does not affect the parties’ rights under on-going arbitration proceedings.)
School campuses and healthcare facilities remain a vital component of Emirates REIT’s portfolio, which also features offices and industrial assets. “This agreement and rent payment is an important milestone in restoring our relationship with Jebel Ali School,” said Sylvain Vieujot, Executive Deputy Chairman of Equitativa. “We want to ensure the long term success of this important tenant of Emirates REIT and of our education portfolio.”
It is not known when the benefits from this agreement will show up in the property fund’s numbers. Last week, it announced the sale of half-a-floor at its flagship Index Tower in DIFC, as the fund seeks to turn itself around from value erosion and losses of Dh897 million for 2020.