Emirates Reit Completes Sale of Office Park Building
This prime office property in Dubai in new hands.
Dubai, United Arab Emirates, 21 October 2024 – Equitativa (Dubai) Limited (“Equitativa”), manager of Emirates REIT (CEIC) PLC (“Emirates REIT” or the “REIT”), is pleased to announce that the sale of Office Park to TECOM Investment FZ LLC (wholly owned subsidiary of TECOM Group) is now complete.
Office Park is a Grade A commercial asset in Dubai Internet City.
The agreed sale price of AED 720m represents a substantial premium over the property's Fair Valuation as of 30 June 2024.
Thierry Delvaux, CEO of Equitativa, said: “We appreciate the strong support of our shareholders in approving this transaction, which was an important step in reducing financing costs and delivering value to Emirates REIT’s stakeholders."
Mr. Delvaux added, "On behalf of the Board, I would like to thank our shareholders for their continued support and confidence in Emirates REIT."
Mr. Delvaux continued, "The net sale proceeds will be used to reduce Emirates REIT’s banking facilities and partially redeem the secured sukuk certificates issued on 12 December 2022, in line with the terms and conditions. The completion of the Office Park sale capitalises on favourable market conditions, allowing Emirates REIT to realise significant gains and reduce its FTV to under 26%*.
"This further strengthens our financial position and ability to pursue future growth opportunities,” Mr. Delvaux concluded.
*Based on forecasted FY/24 results
For further information, please refer to Emirates REIT’s Investor Relations Page.
