Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management. ENBD Reit is calling in shareholders for a February 12 meeting to take up the proposal to convert into a private entity. Image Credit: Gulf News Archive

Dubai: ENBD REIT (real estate investment trust) will be holding an extraordinary general meeting on February 12 to get a go-ahead from shareholders to turn into a privately held structure. This will be subject to other regulatory approvals.

The management believes a “private structure is better suited for shareholders looking to realise improved returns over a fixed investment horizon,” the company said in a statement.

“We believe shifting to a private structure with a limited-term investment horizon is the best strategy to realise value for shareholders,” said Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management.

ENBD REIT “may still look to acquire income generating assets, using existing available financing, should these assets meet the current acquisition criteria,” the statement added.

If the resolutions are passed at the upcoming EGM, the net proceeds of any future disposals will be passed on to shareholders by way of dividends or a return of capital.

Key numbers
* ENBD REIT, a real estate investment trust managed by Emirates NBD Asset Management Ltd., had a net asset value of $246 million as of December 31, following a dividend payment to shareholders of $4.9 million, as compared with the previous quarter’s NAV of $254 million cum-dividend.
* Its property portfolio value stands at $429 million, down from $435 million in the previous quarter, as a result of valuation losses . This was predominantly on its residential holdings.
* Occupancy across the portfolio improved to 81 per cent with an average unexpired lease term of 3.37 years.