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.