Dubai - Mubasher: Emirates NBD REIT Limited (ENBD REIT), the Shari’a-compliant real estate investment trust managed by Emirates NBD Asset Management, on Sunday announced its acquisition of The Edge office building in Dubai Internet City from developer SWEID & SWEID.
The AED 280 million ($76.2 million) acquisition will achieve a 7.4% gross return and a 6.6% net return, according to a company statement.
The seven-storey 92,000-square foot office building is the headquarters of tech outfit Oracle, Snapchat, and American education publisher McGraw Hill, ENBD REIT revealed.
The prime grade ‘A’ property comprises 233 parking bays on the ground floor and three levels of basement parking.
“We’re pleased to announce our third acquisition since listing on Nasdaq Dubai in March, and it is fitting that The Edge is a fully-leased, prime grade ‘A’ asset,” said Tim Rose, head of real estate at Emirates NBD Asset Management.
“With a levered return of 9% on equity, this is a strategic acquisition of a flagship building that will provide income and growth in the coming years,” he added.
Meanwhile, Maher Sweid, founder and managing partner of Dubai-based SWEID & SWEID said that the announcement “clearly demonstrates our ability to deliver contemporary commercial buildings of the utmost quality within the exact parameters of what tenants are looking for.”
ENBD REIT acquired a number of alternative assets including the AED 55 million ($15 million) under-construction South View School in Dubai’s Remraam Community and the AED 120 million ($33 million) Uninest Dubailand student accommodation building.
ENBD REIT’s portfolio has reached $447 million, the statement concluded.
