Emirates REIT 3.5 times oversubscribed

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nasdaq DubaiTrading began in Emirates REIT on April 8 on Nasdaq Dubai following its initial public offering (IPO), in the first listing of a Real Estate Investment Trust (REIT) on an exchange in the GCC.

Emirates REIT raised $175 million in its IPO and was 3.5 times oversubscribed.

Abdul Wahed Al Fahim, chairman of Nasdaq Dubai, said: “Through Emirates REIT, investors now have access to a new type of attractive asset class for the first time in the region. The listing demonstrates Dubai’s ability to provide an efficient platform for capital-raising for a wide variety of issuers seeking global visibility and first class regulation.”

Hamed Ali, Chief Executive of Nasdaq Dubai, said: “As Dubai’s economy maintains strong growth, the exchange is preparing for expansion with new listings of equities as well as innovative alternative asset classes. Through its close links to investors around the world, Nasdaq Dubai offers issuers all the advantages of an international exchange from a base in the business and financial hub of the region.”

Emirates REIT invests in Shariah-compliant real estate assets.

REITs are a type of property fund. Investors receive income from the properties in which the REIT invests, through dividends.

Emirates REIT will buy a “very significant number” of properties in 2014 after purchasing three last year, Sylvain Vieujot, executive deputy chairman, said at the listing event. Properties valued at over $27 million are “still very reasonably priced,” he said.

Emirates REIT owns 10 properties, mostly office buildings in Dubai, which provided total returns of 25 per cent in 2013, according to its website. The company can still find buildings that provide a 10 per cent net return today, which can be enhanced after making some improvements, Vieujot said.

Emirates REIT made a profit of $34.8 million in 2013 on net revenue of $46 million, according to the offer document.

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Reading Time: 2 minutes

Trading began in Emirates REIT on April 8 on Nasdaq Dubai following its initial public offering (IPO), in the first listing of a Real Estate Investment Trust (REIT) on an exchange in the GCC.

Reading Time: 2 minutes

nasdaq DubaiTrading began in Emirates REIT on April 8 on Nasdaq Dubai following its initial public offering (IPO), in the first listing of a Real Estate Investment Trust (REIT) on an exchange in the GCC.

Emirates REIT raised $175 million in its IPO and was 3.5 times oversubscribed.

Abdul Wahed Al Fahim, chairman of Nasdaq Dubai, said: “Through Emirates REIT, investors now have access to a new type of attractive asset class for the first time in the region. The listing demonstrates Dubai’s ability to provide an efficient platform for capital-raising for a wide variety of issuers seeking global visibility and first class regulation.”

Hamed Ali, Chief Executive of Nasdaq Dubai, said: “As Dubai’s economy maintains strong growth, the exchange is preparing for expansion with new listings of equities as well as innovative alternative asset classes. Through its close links to investors around the world, Nasdaq Dubai offers issuers all the advantages of an international exchange from a base in the business and financial hub of the region.”

Emirates REIT invests in Shariah-compliant real estate assets.

REITs are a type of property fund. Investors receive income from the properties in which the REIT invests, through dividends.

Emirates REIT will buy a “very significant number” of properties in 2014 after purchasing three last year, Sylvain Vieujot, executive deputy chairman, said at the listing event. Properties valued at over $27 million are “still very reasonably priced,” he said.

Emirates REIT owns 10 properties, mostly office buildings in Dubai, which provided total returns of 25 per cent in 2013, according to its website. The company can still find buildings that provide a 10 per cent net return today, which can be enhanced after making some improvements, Vieujot said.

Emirates REIT made a profit of $34.8 million in 2013 on net revenue of $46 million, according to the offer document.

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