Equitativa, Lycée break ground on $6.8m educational facility
Second phase of construction at Lycée scheduled to complete before opening of senior school in September 2020
GCC-based real estate investment trust (Reit) manager Equitativa – which manages the Emirates Reit – and Dubai-based Lycée Français Jean Mermoz broke ground on a $6.8m (AED25m) educational facility, marking the beginning of the second phase of construction that is scheduled to be completed before the opening of Lycée’s senior school in September 2020.
Owned by Emirates Reit, the building will house the school’s addition of secondary level education, and will be leased to Lycée Français Jean Mermoz upon completion, in a long-term agreement that extends to 25 years.
The educational facility, together with the existing school, is expected to generate an estimated internal rate of return (Irr) in excess of 11%.
The overall investment – including the development of two facilities that comprise a large gym, an auditorium, and two indoor pools alongside classrooms – is expected to reach approximately $33m (AED120m).
Commenting on the milestone, chairman of Emirates Reit, Abdullah Al Hamli, said: “We are pleased to break ground and commence construction on the secondary school building, which will be developed over a 5,574m2 area (60,000 sq. ft.), and will house 24 additional classrooms, and modern ancillary services, such as laboratories, gymnasium, and an auditorium.”
Al Hamli added: “We anticipate this to be fully completed in less than 12 months, and believe this new project will strengthen Emirates REIT’s rental income, offering substantial upside valuation and securing long-term cash flows.”