UAE lists second real estate investment trust

Emirates NBD Asset Management has listed the second real estate investment trust (Reit) in the UAE on the Dubai Nasdaq exchange.

The trust raised $105 million in an initial public offering that “demonstrates the close links between the UAE’s property sector and its capital markets infrastructure”, according to the chief executive of the exchange.

The listing comes nearly three years after Emirates REIT, managed by Dubai-based Equitativa, made its debut on the same exchange.

“Our rationale for the listing was to improve liquidity and allow greater flexibility in managing the Reit,” said Tariq Bin Hendi, director of the trust. “Our improved capital structure means [the Reit] will have less of a requirement to retain cash for the purposes of managing liquidity in the event of investor withdrawals, and will allow us to remain more fully invested – thereby achieving long-term returns for our shareholders.”

The trust is sharia-compliant and invests primarily in income-generating property. Based on its offer price, it has a market capitalisation of $282 million. The Emirates REIT from Equitativa has a market capitalisation of $762 million, according to the company’s website.

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