Emirates REIT prices public share offer

23 March 2014

Real estate investment trust’s market capitalisation is estimated at $356m-$409m

Emirates REIT has priced its initial public offering (IPO) at $1.36 to $1.56 a share, which could raise a total of $150m-$172m. That will give the company a market capitalisation of approximately $356.2m-$408.6m.

The company expects to end its roadshow and book-building process on 2 April, listing on Nasdaq Dubai during the following week. The proceeds will be used to fund future acquisition opportunities, with a portion to be used to fund investment in existing assets.

It will issue up to 110,294,118 new shares, subject to an over-allotment option of up to 16,544,118 additional shares.

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. Local banks Abu Dhabi Commercial Bank and Dubai Islamic Bank, and EFG Hermes UAE, the local arm of the Cairo-based bank, are co-lead managers.

Emirates REIT, a sharia-compliant real estate investment trust incorporated in the Dubai International Financial Centre (DIFC), has a portfolio of 10 Dubai properties, including the Index tower in DIFC, several office properties in Dubai Internet City and Dubai Media City, and a Gems Education school in the Al-Barsha area.

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