Portfolio of Abu Dhabi's The Residential REIT valued at $354m
The Residential REIT's portfolio includes properties in Abu Dhabi's Al Reem Island and Saadiyat Island, as well as Al Hamra Village in Ras Al Khaimah, and Dubai Motor City
The Residential REIT, a Sharia'a- compliant residential real estate investment trust (REIT), revealed details of its portfolio value and its transactions with three entities.
Incorporated by Abu Dhabi Global Market (ADGM) and managed by Equitativa (AD), the REIT's portfolio value at the end of last year was valued at $354m (AED1.3bn).
The REIT announced that it had completed transactions with Abu Dhabi Islamic Bank, Arcapita, and "a large Saudi institution", for an aggregated value of $210.2m (AED772m).
Abu Dhabi Islamic Bank contributed 165 residential units from three buildings in Marina Square, located within the UAE capital's Al Reem Island (pictured).
Meanwhile, Arcapita and the Saudi institution also contributed three buildings comprising 285 residential units of Saadiyat Beach Residences, situated in Saadiyat Island.
Following the transactions, the REIT's shareholders include National Bonds Corporation, Al Hamra Real Estate Development, Abu Dhabi Islamic Bank, and Arcapita Investment Management, in addition to the Saudi institution and a private investor.
The completion of these acquisitions means The Residential REIT's portfolio now includes 1,069 units, which cover the latest additions worth $210.2m, as well as 371 units in Al Hamra Village (Ras Al Khaimah), 248 studio, one-bedroom, and two-bedroom apartments in Dubai Motor City.
Commenting on these developments, Sylvain Vieujot, chairman of Equitativa, the REIT's manager, said: "12 months ago, Equitativa launched The Residential REIT to take advantage of the current market conditions in the residential sector.
"This is our second REIT in the UAE to achieve critical size and attract key institutional investors and we are very pleased with the support we have received from our shareholders and from ADGM.
"The Residential REIT has built an attractive and diversified portfolio providing the strong foundation needed to propel us to the next stage where we prepare for further growth and a future IPO [initial public offering].
"We trust that 2018 will be a great year for both our UAE REITs: Emirates REIT and The Residential REIT."
Richard Teng, chief executive officer of ADGM's financial services regulatory authority, added: "We would like to congratulate the Equitativa Group on its Residential REIT, adding to the investment landscape in the region.
"We have seen an increasing appetite for yield-focused business solutions such as REITs as an asset and investment class in the GCC, particularly in the Saudi Arabia and UAE markets.
"We are glad to be Equitativa’s preferred REIT regime and platform."