Emirates Reit realty assets top Dh1.1b

(MENAFN- Khaleej Times) Abdulla Ali Al Hamli, chairman of the fund manager to Emirates Reit, said the acquisition leaseback deal was a "win-win" for both parties. Emirates Reit, the first UAE-regulated real estate investment trust, has acquired a long leasehold interest in a school campus in Dubai from Gems Education in an acquisition leaseback deal, raising Emirates Reit's assets to eight properties now valued at over Dh1.1 billion. Following the transaction, Emirates Reit will own the facilities and related assets of the Gems World Academy in Dubai. Gems will continue to operate and manage the property as usual and there will be no impact on school operations. Abdulla Ali Al Hamli, chairman of the fund manager to Emirates Reit, said the acquisition leaseback deal was a "win-win" for both parties. "Emirates Reit is investing in one of the best schools in Dubai representing a very stable income-generating asset. We set out to grow our assets under management to over Dh1 billion this year and this acquisition continues our strong momentum, following quickly after the purchase of the Index Tower Retail in the DIFC." Nicholas Guest, chief financial officer of Gems Education, said: "We have found in Emirates Reit a strong partner and have already established a positive relationship to ensure that the Gems school campus has a long-term, stable property owner in the UAE. The outlook for the UAE education sector remains very positive due to continued growth in the UAE economy, and we expect continued demand growth for the provision of quality education. The sale of the building will help fund our development and expansion plans within the UAE education sector." Following the transaction, Emirates Reit now has eight investment properties in its portfolio with a weighted average unexpired lease term across the portfolio of over 10 years. The Gems property acquisition, which is yield-accretive, represents approximately 25 per cent of Emirates Reit's income stream. Sylvain Vieujot, deputy chairman of the fund manager to Emirates Reit, said: "This transaction is an important moment in the development of our business. It not only brings scale, but also strong, long-term, secure cash flows at our target yield. It further diversifies our income base, balancing our portfolio across an increasingly wide range of real estate asset classes." Reits, or real estate investment trusts, are structured and regulated investment portfolios that allow individual investors access to real-estate portfolio investments without personally owning assets, and allow asset owners to access a broader, and more liquid, investor base.