Emirates REIT plans to raise at least Dh500 million in what would be the first initial public offering on Nasdaq Dubai since 2008.
The Sharia-compliant real estate trust (REIT), a joint venture between Dubai Islamic Bank and Eiffel Management, intends to use the proceeds to expand its current portfolio of 10 properties valued at more than $323m.
It represents another milestone in the emirate’s property rebound and a boost for the Nasdaq Dubai bourse, which has struggled to attract new listings since its launch in 2005.
“I think the liquidity is coming,” said Sylvain Vieujot, the executive deputy chairman of REIT Management. “I think it will grow as the REIT grows.”
The planned share sale will be a key test of institutional investor sentiment towards real estate in the emirate. Only institutional investors will be able to participate in the initial sale, which will be opened to other buyers after it starts trading. No listing date has yet been disclosed but advisers will start assessing demand for the offering from investors within weeks.
Real estate investment trusts (REITs) own income-producing property that pays dividends to investors based on the underlying performance of those assets.
While some analysts have expected to see more such trusts gain traction in Dubai, a limited supply of property assets typically attractive to institutional investors, such as offices with long leases and blue chip tenants, has held the sector back.
Much of the office space completed in Dubai in recent years was sold off plan and by the floor during the dying days of the 2008 property bubble, making the subsequent sale of entire buildings extremely problematic.
The prospect of negotiating with multiple landlords has made the acquisition of these so called “strata-owned” buildings a turn-off for big institutions that tend to look for long leases, quality tenants and single owners.
This shortage of institutional grade office space in Dubai has encouraged some property investment companies to look at other income-producing property such as schools or car parking spaces – both of which are represented in the Emirates REIT portfolio.
Proceeds from this share sale will be used to buy more properties or develop existing ones. It has already drawn up a short list of target acquisitions.
“This IPO reflects rising confidence in real estate,” said Craig Plumb, the regional head of research at JLL, the international property consultant formerly known as Jones Lang LaSalle.
He expects more existing property portfolio owners and developers to consider creating real estate investment trusts as new vehicles for their property assets.
Emirates REIT was created in the 2010 trough of the Dubai property market and became the first Sharia-compliant real estate investment trust to be incorporated at the Dubai International Financial Centre. Its first purchase was Building 24 in Dubai Internet City.
The REIT generated total comprehensive income of $34.8m last year, up from $10.9m in 2012, mirroring the rapid appreciation of rents in the emirate over the last two years.
Its shareholders include Dubai Islamic Bank (30.9 per cent), Vintage Bullion (23.1 per cent), Dubai Properties (19.6 per cent) and other investors with smaller holdings such as Tecom, EFG-Hermes and Deyaar.
This latest offering comes amid rising confidence in the performance of local shares. The DFM General Index has gained more than 126 per cent in the past year, with the Abu Dhabi Securities Exchange Index rising more than 69 per cent.
Marka, a new retail company, announced plans last month to launch a Dh500m IPO on the Dubai Financial Market. Other local companies are also believed to be preparing share sales.
The upgrade of the UAE in May to emerging market status by the index provider MSCI could provide a further boost for IPOs in the country. MSCI's emerging index is tracked by some $1.4 trillion in flows.
“This year could be a really good year for IPOs,” Essa Kazim, the chairman of the Dubai Financial Market, said on Monday.
scronin@thenational.ae
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Director: Paul Weitz
Stars: Kevin Hart
3/5 stars
COMPANY%20PROFILE%20
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Killing of Qassem Suleimani
Killing of Qassem Suleimani
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Autumn international scores
Saturday, November 24
Italy 3-66 New Zealand
Scotland 14-9 Argentina
England 37-18 Australia
School counsellors on mental well-being
Schools counsellors in Abu Dhabi have put a number of provisions in place to help support pupils returning to the classroom next week.
Many children will resume in-person lessons for the first time in 10 months and parents previously raised concerns about the long-term effects of distance learning.
Schools leaders and counsellors said extra support will be offered to anyone that needs it. Additionally, heads of years will be on hand to offer advice or coping mechanisms to ease any concerns.
“Anxiety this time round has really spiralled, more so than from the first lockdown at the beginning of the pandemic,” said Priya Mitchell, counsellor at The British School Al Khubairat in Abu Dhabi.
“Some have got used to being at home don’t want to go back, while others are desperate to get back.
“We have seen an increase in depressive symptoms, especially with older pupils, and self-harm is starting younger.
“It is worrying and has taught us how important it is that we prioritise mental well-being.”
Ms Mitchell said she was liaising more with heads of year so they can support and offer advice to pupils if the demand is there.
The school will also carry out mental well-being checks so they can pick up on any behavioural patterns and put interventions in place to help pupils.
At Raha International School, the well-being team has provided parents with assessment surveys to see how they can support students at home to transition back to school.
“They have created a Well-being Resource Bank that parents have access to on information on various domains of mental health for students and families,” a team member said.
“Our pastoral team have been working with students to help ease the transition and reduce anxiety that [pupils] may experience after some have been nearly a year off campus.
"Special secondary tutorial classes have also focused on preparing students for their return; going over new guidelines, expectations and daily schedules.”
UAE currency: the story behind the money in your pockets
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
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Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
Profile
Co-founders of the company: Vilhelm Hedberg and Ravi Bhusari
Launch year: In 2016 ekar launched and signed an agreement with Etihad Airways in Abu Dhabi. In January 2017 ekar launched in Dubai in a partnership with the RTA.
Number of employees: Over 50
Financing stage: Series B currently being finalised
Investors: Series A - Audacia Capital
Sector of operation: Transport
A timeline of the Historical Dictionary of the Arabic Language
- 2018: Formal work begins
- November 2021: First 17 volumes launched
- November 2022: Additional 19 volumes released
- October 2023: Another 31 volumes released
- November 2024: All 127 volumes completed
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
THE BIO
Ms Davison came to Dubai from Kerala after her marriage in 1996 when she was 21-years-old
Since 2001, Ms Davison has worked at many affordable schools such as Our Own English High School in Sharjah, and The Apple International School and Amled School in Dubai
Favourite Book: The Alchemist
Favourite quote: Failing to prepare is preparing to fail
Favourite place to Travel to: Vienna
Favourite cuisine: Italian food
Favourite Movie : Scent of a Woman
Persuasion
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ECarrie%20Cracknell%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EDakota%20Johnson%2C%20Cosmo%20Jarvis%2C%20Richard%20E%20Grant%2C%20Henry%20Golding%20and%20Nikki%20Amuka-Bird%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%201.5%2F5%3C%2Fp%3E%0A
Cry Macho
Director: Clint Eastwood
Stars: Clint Eastwood, Dwight Yoakam
Rating:**
