Dubai – Mubasher: Equitativa, manager of Emirates REIT (a global Sharia-compliant REIT), has announced the signing of AED 75 million ($20.5 million) buy and lease-back agreement with the Lycée Français Jean Mermoz to acquire its premises in Al Quoz in Dubai.
Equitativa expects the deal to generate a 12% internal rate of return (IRR) and a 9.75% net yield, according to a company statement released on Tuesday.
“We are pleased to enter this new partnership with the Lycée Français Jean Mermoz, the fourth educational facility in Emirates REIT’s portfolio,” Equitativa Dubai’s CEO Sylvain Vieujot commented.
The Lycée Français Jean Mermoz assigned the interest on the land leasehold plot to Emirates REIT and inked an Istisna agreement to finance an extension in facilities, which will be carried out in two phases.
“This agreement is similar to the ones completed previously with The Jebel Ali School and British Columbian Canadian School. Our successful track record in managing both schools will be replicated to similar successes in the Lycée Français,” Vieujot said.
A sum of AED 875 million ($238 million) will be added to Emirates REIT’s educational sector portfolio after the completion of the acquisition, Equitativa revealed.
