Saturday 2 July 2022

Equitativa sells property hosting Dubai school for $64m

DUBAI, May 28, 2022

Equitativa (Dubai), the largest real estate investment trust manager in GCC and also manager of Emirates REIT, said it has sold its property hosting Jebel Ali School located within Akoya development in Dubai, to Taaleem Holdings for AED233.5 million ($63.5 million). 
Emirates REIT had held the plot since 2015 and had funded the development of the school facility with a capacity of over 1,800 students for the not-for-profit Jebel Ali School.
The school, which was established in 1977, is a leading British curriculum school in Dubai for students aged 3-18 years. It relocated its operations to the new Akoya campus in 2016.
The aggregate consideration of the transaction to be paid by Taaleem to Emirates REIT is equal to AED233.5 million ($63.5 million) and comprises both the property sale price; a quantum equal to the last valuation undertaken by one of the real estate trust’s independent valuers and the settlement of the school outstanding liabilities towards the REIT, said the statement from Equitativa.
Upon receipt of the full consideration, the total return on investment derived by Emirates REIT from the Jebel Ali School property over the hold period will be 1.4 times its investment, it stated.
Following the completion of the divestment, Emirates REIT’s portfolio comprises 10 properties across Dubai with a net lettable area of 203,366 sqm. The value of the investment properties stands at AED2.6 billion, with circa 37.6% of the REIT’s net lettable area in educational assets.
On the sale, CEO Thierry Leleu said Equitativa is delighted to have partnered with Taaleem and the Board of Governors at Jebel Ali School in closing this transaction for the benefit of Emirates REIT’s investors, Jebel Ali School and its students and faculty members.
"This transaction highlights our dual commitment to optimize returns for our investors and support our tenants’ operations and growth. We look forward to redeploying the disposal proceeds in other opportunities," he added.-TradeArabia News Service


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