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ENBD REIT: Industrial assets are of key value

Industrial assets catering to the "last mile" phenomenon are something the investment fund is "looking closely at", Emirates NDB Asset Management's head of real estate said

ENBD REIT acquired Dubai's South View School in August 2017 for $15m.
ENBD REIT acquired Dubai's South View School in August 2017 for $15m.

Emirates NBD Asset Management views industrial assets as key sources of value for ENBD REIT, the UAE-focused real estate investment fund it manages.

"Our main focus where we really see value at the moment is in the industrial space," Anthony Taylor, head of real estate at Emirates NBD Asset Management told Construction Week, adding this investment sector is one in the region that has been "neglected to a large extent".

"We are looking closely at this ‘last mile’ phenomenon that is happening elsewhere in the world, touching on the delivery space."

READ: ENBD REIT completes deployment of $105m raised on Nasdaq Dubai

The concept is used to describe the short geographical segment of delivery of communication and media services, or delivery of products to customers located in dense areas.

Last mile logistics tend to be complex and costly to providers of goods and services who deliver to these areas.

Taylor added: "These online delivery service providers are looking for smaller distribution hubs well located in cities to get their products to their customers as quickly as possible.  That creates an opportunity for landlords as well."

With this in mind he also said healthcare was too an important sector for the group alongside education asserts.

READ: Is the GCC market sufficiently mature to handle REIT growth?

"We are still looking at some education assets," he said. "We hold one asset in out portfolio, contributing 3-4% of the portfolio’s total value, but we feel the right operator providing the right curriculum will do well in this market."

Taylor’s comments comes a month after it appointed a new senior portfolio manager at ENBD REIT, replacing Ben Combe who filled the role for the last ten years.

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Construction Week - Issue 749
Sep 15, 2019