Emirates REIT Signs Agreement to Sell the Office Park Building
The major Internet City asset will pass on to new hands.
Dubai, United Arab Emirates, 1 October 2024 – Equitativa (Dubai) Limited (“Equitativa”), manager of Emirates REIT (CEIC) PLC (“Emirates REIT” or the “REIT”), is announcing the signing of an agreement to sell Office Park, a Grade A commercial asset in Dubai Internet City, to TECOM Investment FZ LLC, for a value of AED 720 million.
The transaction is pending approval from shareholders at Emirates REIT’s upcoming Extraordinary General Meeting (EGM), scheduled to take place in October 2024.
Office Park, which Emirates REIT has owned since 2012, consists of five interconnected blocks and boasts a Gross Leasable Area (GLA) of 370,761 sq. ft. With its extensive floor plans, the property has proven to be highly attractive to global companies and currently enjoys an 88% occupancy rate.
The agreed sale price of AED 720 million represents a substantial premium over the property's Fair Valuation as of 30 June 2024.
If the transaction is approved at the EGM, a portion of the net sale proceeds will be used to partially redeem the secured sukuk certificates issued on 12 December 2022, in line with the terms and conditions. Following the recent sale of Trident Grand Mall in July, this transaction is part of Emirates REIT’s ongoing de-leveraging strategy, taking advantage of current favorable market conditions.
For further information, please refer to Emirates REIT’s Investor Relations Page.
