Emirates REIT, the UAE’s first property investment trust, said the price range it expects to sell shares to the public at would give the REIT a market capitalisation of up to US$408.6 million.
The Sharia-compliant real estate investment trust has set an indicative price range for the offering at between $1.36 to $1.56 per share for the 110.29 million shares it may sell after an over-allotment of 16.5 million shares, Emirates REIT said in a statement today. The management road show will start today and end on April 2 and it is expected that a definitive price at which the shares will sell will be announced a day or two later, it said.
“We have built a diversified portfolio of properties in Dubai that has delivered consistent dividends to Emirates REIT’s shareholders and a steady increase in the net asset value per share since incorporation,” said Sylvain Vieujot, the executive deputy chairman of the REIT manager. “We believe that UAE real estate is an attractive market, underpinned by solid growth drivers and we are keen to capitalise on the investment opportunities within the sector.”
The proceeds of the share sale will be used to fund future acquisition opportunities of which the REIT’s management has already short listed a number of properties it may acquire with the cash, it said.
Most Reits, which buy properties, manage them and distribute the rental yield to investors, are publicly traded. Emirates REIT’s eight investment properties in Dubai include Gems World Academy, Indigo 7 on Sheikh Zayed Road and Office Park in Dubai Internet City.
mkassem@thenational.ae
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