Dubai's ENBD Reit, Mashreq Bank ink $177m financing facility

Nasdaq Dubai-listed investment fund said Mashreq Bank fund would support its real estate diversification plans

ENBD Reit is listed in Dubai.
ENBD Reit is listed in Dubai.

Emirates NBD Real Estate Investment Trust (ENBD Reit) has inked a $177m (AED650m) financing facility with the UAE’s Mashreq Bank to support the its diversification strategy.

The Nasdaq Dubai-listed and shari'a-compliant trust said the capital would refinance $134.5m (AED494m) of its existing debt and provide “additional funding for acquisitions and corporate purposes”.

As of 31 March, 2019, ENBD Reit's net asset value stood at $270m, or $1.08 per share.

The total value of its property portfolio was $450m, with loans standing at $180m.

Anthony Taylor, head of real estate at Emirates NBD Asset Management, which manages ENBD Reit, said: “Our intention is to diversify our holdings by increasing allocation to the alternative segment, where we are seeing most growth and resilience in light of current market conditions.”

Ahmed Abdelaal, executive vice president and head of corporate and investment banking group, said Mashreq Bank believed it to be the "right time to support ENBD Reit's refinancing and growth plans".

He added: “We see this facility as providing them with a platform to further develop its shari’a-compliant portfolio of real estate assets and in turn benefit the UAE local economy over the long-term.”

In August 2018, Taylor told Construction Week that industrial assets were key sources of value for the fund, adding the sector had been “neglected to a large extent” in the region.

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