ENBD REIT Announces Sale of Remraam Residential Towers

1 Min | 15 August 2024

Sale price represents slight premium to 31 March 2024 market value
Divestment in line with turnaround strategy for growth and portfolio optimisation
Proceeds deployed to reduce debt with LTV down to 49.4%

Dubai, United Arab Emirates, 13 August 2024: ENBD REIT (CEIC) PLC (“ENBD REIT”), the Shari'a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced the successful sale of the Remraam residential assets at a slight premium to market value at 31 March 2024.

The decision to divest this asset is in line with ENBD REIT’s turnaround strategy to optimize its portfolio with a focus on dividend growth via proactive asset management. The proceeds from this sale will be utilized to reduce debt, resulting in the LTV ratio dropping to 49.4% from 51%.

Samir Kazi, Head of Real Estate at Emirates NBD Asset Management and CEO of ENBD REIT, said:

“Following a comprehensive review of the portfolio, we have identified a clear turnaround strategy to unlock value for our shareholders and maintain our position as a reliable dividend payer. This divestment marks a significant first step to streamline our future-facing portfolio by improving the overall mix of the portfolio and strengthen our financial foundations by reducing our debt.”

The two Remraam residential towers, Al Ramth 57 and 59, are located in Dubailand and offer a total of 105 units with a net leasable area of 112,154 square feet. Acquired in September 2015, Remraam represents 4% of the REIT’s portfolio value.

As part of the sustainable turnaround journey, ENBD REIT continues to explore opportunities for strategic investments and portfolio rebalancing. Despite challenges posed by a high interest rate environment and pricing expectations, ENBD REIT maintains its commitment to delivering value to its investors through proactive asset management and prudent financial practices, driving long-term growth and sustainability.

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