Abu Dhabi Financial Group (ADFG), a UAE-based alternative investment firm, is launching Etihad REIT, a Shariah-compliant real estate investment trust (REIT), which will tap the capital markets for funds through an initial public offering.

Etihad REIT, which comprises a seed portfolio of 10 income producing assets based in the UAE, will look to list shares on one of the country’s stock exchanges, according to an ADFG statement.

The company “expects to raise further capital through an IPO on a stock exchange in the UAE at an appropriate time and subject to regulatory approvals,” ADFG said, without specifying the amount Etihad REIT is looking to raise through the public offering or which of the three UAE exchanges it is seeking list its shares on.

Jassim Alseddiqi, the chief executive of ADFG in March told MEED that the group could raise AED500m ($136.2m) from the public offering and the listing could could take place as soon as this year.

Dubai-based Shuaa Capital and National Bank of Abu Dhabi are the lead financial advisers, global coordinators, and joint bookrunners for the planned share sale.

Etihad REIT has holdings in real estate sub-sectors including residential, retail, warehousing and staff accommodation. The mixed-use portfolio, which will be managed by an Abu Dhabi Financial Group company, is situated in prime locations across the UAE and the assets have a blended occupancy level of over 90 per cent. The 10 properties have been contributed by the company’s founding shareholders including Abu Dhabi-listed Eshraq Properties.

According to Alseddiqi the size of assets under management of the investment trust are about AED3bn.

Abu Dhabi Financial Group looks to next phase of growth

Jassim Alseddiqi, CEO of Abu Dhabi Financial Group

Jassim Alseddiqi, CEO of Abu Dhabi Financial Group

Jassim Alseddiqi, CEO of Abu Dhabi Financial Group

Interview: Jassim Alseddiqi, CEO of Abu Dhabi Financial Group

Abu Dhabi Financial Group (ADFG), a UAE-based alternative investment firm, has a short history of existence and yet has built up a rich deal-making record. It has grown from having $100m in assets under management in 2011 to a portfolio of investments worth more than $5bn today. ADFG has also achieved an internal rate of return of 27 per cent in about 50 investments.

Jassim Alseddiqi, CEO of ADFG, is now looking to the next phase of the company’s development. “I think 2017 is going to be a year of growth, but having said that it will be a year of consolidation as well for different ADFG assets and partnerships,” he says. “We need to take a step back and see how we can laser-focus on portfolio entities and make sure they are competitive, efficient and contributing to the growth of ADFG as a group.” Read more