The Dubai-based sharia complaint real estate fund run by Emirates NBD has extended the leases for tenants of its largest tenants.
These include its largest single tenant, tech giant Oracle, which has extended its contract at the Edge building for another five years.
The Edge building, along with Al Thuraya Tower 1, Burj Daman and Dubai Healthcare City 49, account for a significant portion of ENBD Reit’s portfolio and the recent lease extensions are equivalent to 23% of total available space renewed in these buildings, according to ENBD.
The real estate fund also reports that “healthy leasing activity” across its portfolio for the quarter has seen the average unexpired lease term improve by 22% from 3.2 years to 3.9 years.
“Securing and sustaining longer-term lease agreements is a core component of our strategy,” said Anthony Taylor, head of real estate at ENBD Asset Management.
“This is particularly important for tackling the challenges created by Covid-19, a weakened oil price environment, and a soft real estate market,” he added.
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