Emirates REIT to acquire the European Business Centre in Dubai Investments Park for AED 130 million
![Emirates REIT to acquire the European Business Centre in Dubai Investments Park for AED 130 million](https://ggfx-handh3.s3.eu-west-2.amazonaws.com/i/latest_news_europ_business_center_fb6a9a8ca0.jpg)
Emirates REIT (CEIC) Limited (‘Emirates REIT’ or the ‘REIT’), the world’s largest Shari’a compliant Real Estate Investment Trust, managed by Equitativa (Dubai) Limited (‘Equitativa Dubai’), today announced that it has signed the acquisition of the European Business Centre (‘EBC’) in Dubai Investments Park (‘DIP’), at a purchase price of AED 130 million ($35.4m).
Emirates REIT expects the transaction to generate an estimated IRR in excess of 10%. Following completion of the acquisition, Emirates REIT’s total portfolio will cross AED 3 billion, comprising ten properties across Dubai.
Located in the heart of Dubai’s industrial area, the European Business Centre is a Ground + 3 storey commercial building with a net leasable area in excess of 273,164 sq ft. It has a current occupancy rate of 87% and a current passing income in excess of AED 20 million. The building comprises 101 corporate tenants, including; Stantec International Inc., UBC Businessmen Service and the German Emirati Business Centre.
The 74,690 sqft retail area on the ground floor includes a variety of business-related services and convenience facilities, including Fresh Express. The building also has 600 basement car parking spaces, 24-hours security, and in-house facility management.
The location of the building in DIP is close to the Jebel Ali Free Zone and Port, Dubai World Central Airport and Dubai South and is well served by access to the Sheikh Zayed Road, Sheikh Mohammed Bin Zayed Road and the Emirates Road.
By 2020, a new metro station is planned to be built on the adjacent plot as part of the EXPO 2020 Dubai metro expansion plan. EBC is also near hotels, educational facilities and a large number of residential units at the Green Community.
Sylvain Vieujot, CEO of Equitativa Dubai, the REIT Manager, commented: “This is a prime commercial asset in Dubai Investments Park, secured at an exceptional price of AED 476 per sq ft.
Upon completion of the transaction, the building will immediately enhance the REIT's cash flow and over the longer-term we expect significant capital appreciation, especially following the completion of the adjacent metro station.”
The acquisition of EBC is Emirates REIT’s second transaction in Dubai Investments Park. In September 2016, the REIT secured a lease on a 270,000 sqft plot of land, on which it is building the British Columbia Canadian School (‘BCCS’). The first phase of the new school is being delivered and opening is pending authority inspections. (...)
This article was originally published here on menaherald.com
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