Emirates REIT finishes $83m Akoya school works
Emirates REIT acquired the freehold land plot from Damac for $26.8m, and leased it to Jebel Ali School, providing an initial net income in excess of 10% of the acquisition costs of the plot
Shari'a compliant real estate investment trust Emirates REIT announced that the new campus of the Jebel Ali School (the School) has been successfully completed.
The school, which is located in the Akoya development in Dubailand, has already welcomed students for the start of the new academic year.
In August 2015, Emirates REIT agreed with Jebel Ali School to build and enter into a 26-year lease for their new school campus. Emirates REIT acquired the freehold land plot from Damac Crescent Properties for $26.8m (AED98.5m), and immediately leased it to Jebel Ali School, providing an initial net income in excess of 10% of the acquisition costs of the plot.
The Jebel Ali School has now been valued at $83m (AED304m), a post-completion valuation gain of $13m (AED47m) since 30 June, 2016.
The Jebel Ali School now represents 11% of the REIT’s total portfolio value.
Sylvain Vieujot, deputy chairman and CEO, Emirates REIT said: “We are pleased to see the school fully ready on schedule. We worked with a strong contractor and other partners that enabled a remarkable completion time.
"Education sector assets now account for approximately 24% of the current income of Emirates REIT's portfolio, bringing very stable rental income and long-term secure cash flows. We wish the school every success in its new home.”
Clive Read, chairman, board of governors, Jebel Ali School, said: “Emirates REIT has delivered a modern and well-designed campus which will allow Jebel Ali School to offer a 21st century education in an exceptional learning environment.
"Although we increased student capacity by 25% from the previous school, the demand has been very high and we already have a substantial waiting list in a number of year levels. Our partnership with Emirates REIT has proven a great success and we look forward to a long and steady relationship over the 25-year lease term.”
Moving from Jebel Ali Village to a larger site inside the Akoya development allows the School to offer secondary education, in addition to the foundation and primary education it currently offers.
The new educational facility, renamed Jebel Ali School, will have a capacity for approximately 1,800 students by 2022.
The new school was designed by a team of leading architects, construction engineers, and educationalists and has built up area of approximately 21,000m2.
The new campus consists of facilities, including an auditorium, indoor sports centre, a 25m competition and teaching pool, science and technology laboratories, a lecture theatre, art, drama and music facilities, and a number sports fields. The eco-friendly campus has its own water recycling plant, solar panels and smart lighting, and HVAC system.