Tuesday 21, November 2017 by Jessica Combes

ENBD REIT announces portfolio occupancy growth


ENBD REIT (CEIC) Limited (ENBD REIT), the Shari’ah-compliant real estate investment trust managed by Emirates NBD Asset Management Limited (Fund Manager), has announced strong occupancy growth during its third quarter across a number of its assets.

Occupancy growth within the portfolio has been particularly robust for ENBD REIT’s affordable residential and office properties.

Binghatti Terraces, an affordable residential building in Dubai Silicon Oasis, has reached 88 per cent occupancy so far, this quarter, up from 70 per cent at the end of the September 2017. The building generated close to 10 per cent of its rental income from retailers, which include Carrefour and Cupaghawa. Other portfolio occupancy growth highlights include achieving 92 per cent occupancy in both Dubai Healthcare City (“DHCC”) properties, with DHCC 25 up from 85 per cent in the previous quarter, and DHCC 49 up from 83 per cent. Income from retailers leasing premises within the assets was also strong, with DHCC 49 generating 18 per cent of its income from retail tenants including Costa Coffee and Al Manara Pharmacy, and DHCC 25 generating 11 per cent of its income from retail tenants including Domino’s Pizza and Subway.

“ENBD REIT’s portfolio occupancy growth thus far this quarter has been driven, in part, by strong demand for well-managed office space and affordable residential property in convenient locations. Our proactive asset management philosophy has directly benefited tenants, which has supported improved occupancy. Tenants can clearly see the benefit of leasing premises owned and managed by ENBD REIT, because they are situated in high quality buildings, where a high level of service is delivered by the facilities management provider. Competitive lease terms and added incentives have also been important for boosting occupancy across the portfolio,” said Anthony Taylor, Fund Manager, Real Estate at Emirates NBD Asset Management.

ENBD REIT’s total property portfolio value stands at $434 million (AED 1.6 billion), following its October acquisition of The Edge in Dubai internet City. The REIT’s two assets in Dubai Healthcare City, widely leased by tenants such as clinics and medical equipment providers, has delivered particularly strong occupancy in 2017. Having raised USD 105 million from listing on Nasdaq Dubai in March 2017, the Fund Manager’s growth strategy is to expand its portfolio across asset classes, including ‘alternative’ properties. Within this category, ENBD REIT recently acquired both the Uninest student accommodation facility in Dubailand and the under-development South View School in Dubai’s Remraam community. All the acquisitions made by ENBD REIT this year have been 100 per cent occupied on long term leases, in line with its growth strategy.    

In October 2017, ENBD REIT announced that it had fully invested the proceeds it raised by listing. ENBD REIT’s Net Asset Value (NAV) on 30 September 2017 totalled $295 million.


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