AMCREIT Makes Strategic Move Into Healthcare With Acquisition Of NMC Royal Hospital In Dubai

In a significant move towards expanding its investment portfolio, Al Mal Capital REIT (AMCREIT), a subsidiary of Dubai Investments and the first REIT to be listed on the Dubai Financial Market, has ventured into the healthcare sector. The REIT has acquired the real estate asset of NMC Royal Hospital located in Dubai Investments Park (DIP), marking its debut in this vital sector.

This key acquisition, operated by NMC Healthcare—one of the UAE's premier integrated healthcare providers—elevates AMCREIT's total portfolio value to an impressive AED 1.4 billion. The addition of this asset expands AMCREIT's portfolio to six diverse, income-producing properties across various robust sectors of the UAE economy.

"This acquisition represents a defining milestone in AMCREIT's growth journey," Naser Al Nabulsi, vice chairman and CEO of Al Mal Capital, remarked. "By entering the healthcare sector, we are broadening the REIT's investment mandate to include essential infrastructure assets that deliver resilient, long-term returns. Partnering with a leading operator like NMC Healthcare ensures a high-quality, income-generating asset with strong operational credentials.

"This transaction aligns with our strategic vision to enhance portfolio diversification, strengthen cash flow predictability, and deliver sustained value to our unitholders. AMCREIT is now uniquely positioned to leverage growth opportunities in high-demand sectors that are critical to the UAE's long-term economic development."

The NMC Royal Hospital real estate encompasses two hospital blocks and a fully leased commercial building, collectively covering an area of 492,332 square feet. This acquisition not only adds a significant asset to AMCREIT's portfolio but also integrates nearly 120 inpatient beds, a wide array of outpatient services, a pharmacy, and an emergency response unit into its healthcare offerings.

Moreover, the commercial building within the premises, being fully leased, provides a stable and recurring revenue source, thereby enhancing the hospital's long-term financial stability.

The healthcare sector in the UAE is experiencing rapid growth, fueled by demographic expansion and a rising demand for private healthcare services. AMCREIT's strategic acquisition of NMC Royal Hospital aligns with its forward-looking approach to invest in specialized real estate sectors with high demand, aiming to bolster long-term value and ensure sustainable returns for its shareholders and investors.

The hospital blocks are secured under a long-term lease agreement, with a residual Weighted Average Unexpired Lease Term (WAULT) of about 17 years, assuring consistent cash flow and robust returns for the investors.

Backed by Dubai Investments and under the strategic guidance of Al Mal Capital, AMCREIT is committed to disciplined investment management. It focuses on acquiring high-quality assets capable of generating resilient income streams and creating long-term value.

This acquisition underscores AMCREIT's determination to diversify its investment in high-quality, income-generating assets within resilient sectors of the UAE economy, thus reinforcing its commitment to solidifying its position in the market and offering sustainable returns to its investors.