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Visual of the future Jebel Ali School.

Emirates REIT acquires freehold land for $26m

DUBAI, August 3, 2015

Emirates REIT, a UAE-based regulated shari'a-compliant real estate investment trust incorporated in the Dubai International Financial Centre and listed on Nasdaq Dubai, has acquired a freehold land plot and will fund the development of a new school in the Akoya development in Dubai.
 
The trust has agreed with Jebel Ali School, to build and enter into a 26-year lease for the new school facility, said the statement.
 
The freehold land plot from Damac Crescent Properties for Dh98.5 million ($26.8 million), including acquisition costs, and immediately leased it to Jebel Ali School, will provide an initial net income in excess of 10 per cent of the acquisition cost of the plot, it said.
 
Emirates REIT has simultaneously entered into an Istisna agreement with Jebel Ali School, to build its new facility.
 
The construction of the school facilities is estimated to cost approximately Dh109.8 million, bringing the total invested to Dh208.3 million. 
 
Upon completion, the school will account for approximately 9.2 per cent of today's portfolio value of Dh2.25 billion.
 
Sylvain Vieujot, executive deputy chairman of Emirates REIT Management, said: “This is our second transaction in the education sector and we are delighted to partner with Jebel Ali School, one of Dubai’s most respected schools. This is a unique opportunity in an exciting and upcoming area of the city and we recognise the long-term strength of the sector and its importance to the overall economy. 
 
“The transaction will enhance rental income from day one and provide long-term secure cash flows.”
 
The new educational facility will include a foundation, primary and secondary school, as well as a sports centre and an auditorium, constructed to the operator’s specifications with a built-up area of approximately 20,800 sq m, the statement added. – TradeArabia News Service



Tags: Emirates | Jebel Ali | land | School | REIT |

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