Dubai: ENBD REIT, the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced a relief initiative for tenants that have been severely affected by the outbreak of COVID-19.
The initiative is aimed at tenants who are in genuine need of rent relief, taking the form of rent free periods, postponement of cheques or rescheduling rental payment plans, depending on their financial situation.
ENBD REIT remains in a healthy financial position with positive rental income and sufficient cash to meet all foreseeable obligations, largely due to measures taken previously to minimise costs and bring down expenses on debt in a lower interest rate environment, the Fund said in a statement.
In line with its strategy to deliver value to shareholders, the REIT’s management has negotiated down a number of service contracts to mitigate the impact of sustained softening in the real estate market.
“Our priority right now is identifying those in genuine need of financial assistance to weather the sustained impact of Covid-19 across businesses in Dubai. While we are in a strong financial position having met our objectives to build resilience into the portfolio, we are not in a position to offer blanket relief to all tenants,” said Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management.
In order for ENBD REIT to provide tenants with adequate rental relief, the fund will require the documents such as: Trading figures for the last 12 months, demonstrating the impact of Covid-19 on revenue; bank account statements for the last 12-month period; evidence of ongoing fixed costs, including a detailed breakdown with supporting documentation and audited financial information for the past 3 years.
For individuals, including residential tenants, the fund requrires documentation demonstrating loss of income, such as a salary reduction or termination letter from their employer and bBank account statements for the last 12-month period to avail relief.
ENBD REIT is also in the process of rolling out a series of flexible solutions for occupants throughout its portfolio. By giving tenants the opportunity to renegotiate or postpone payments to a later date.