Dubai's ENBD Reit grows despite challenges as Huawei moves office

Leasing strategy pays off even as valuation losses driven by ENBD Reit’s Al Thuraya Tower pose challenges in Q1

Burj Daman is an ENBD Reit asset.
ENBD Reit
Burj Daman is an ENBD Reit asset.

Dubai-based sharia'a-compliant real estate investment trust (Reit) ENBD Reit, which is managed by Emirates NBD Asset Management, said its property portfolio value had dropped from $450m (AED1.65bn) to $437m (AED1.6bn) compared to the previous quarter, as a result of one its largest tenants, China's Huawei, vacating from the Al Thuraya Tower and relocating to its purpose-built head office in Dubai.

For the first-quarter ending 30 June, 2019, ENBD Reit’s net asset value stood at $255m (AED936.6m).

Despite valuation challenges, ENBD Reit witnessed leasing growth driven by its Burj Daman and Binghatti Terraces properties, where occupancy increased by 3% and 16% respectively.

Commenting on the Q1 results, Emirates NBD Asset Management's head of real estate, Anthony Taylor, said: “Headwinds have prevailed across the local real estate market, and these have put pressure on valuations.

“Despite these challenges, we have maintained strong occupancy levels, with robust growth in key assets including Burj Daman and Binghatti Terraces.”

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