Emirates REIT looks to raise $136m

11 March 2014

Sharia-compliant real estate investment trust, Emirates REIT, seeks Nasdaq Dubai listing

Emirates REIT, a sharia-compliant investment trust focusing on real estate, is looking to raise at least AED500m ($136.1m) through an initial public offering (IPO).

The company is seeking a listing on Nasdaq Dubai, which suffered from a five-year drought until Bank of London and the Middle East listed on the bourse in October 2013.

The proceeds of Emirates REIT’s offering will mainly be used to fund future real estate acquisitions.

Local banks Shuaa Capital and Emirates NBD Capital are acting as joint bookrunners on the offer, with Shuaa also appointed as the REIT’s sponsor. Abu Dhabi Commercial Bank, Dubai Islamic Bank and EFG Hermes UAE are co-lead managers.

The REIT has a portfolio of 10 Dubai properties, including the Index tower in Dubai Financial Centre, several office properties in Dubai Internet City and Dubai Media City, and a Gems Education facility in the Al-Barsha area.

In 2013, the company registered a net profit of $34.8m, up from $10.9m in 2012. Total assets were $333.2m at 31 December 2013, up from $212.6m at the end of 2012.

The firm is managed by the REIT Manager, a joint venture of Dubai Islamic Bank and French property firm Eiffel Management.

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