Emirates REIT Signs Agreement To Sell Office Park For Dh720 Million

Equitativa (Dubai) Limited, the entity managing Emirates REIT (CEIC) PLC, has entered into a contract to divest its Office Park asset situated in Dubai Internet City. This Grade A commercial property has been acquired by TECOM Investment FZ LLC for Dh720 million. This significant financial move is subject to the approval of Emirates REIT's shareholders during an Extraordinary General Meeting (EGM) planned for October 2024.

Since 2012, Emirates REIT has held Office Park, which comprises five interconnected blocks. This expansive complex, covering a Gross Leasable Area (GLA) of 370,761 sq. ft., has drawn significant interest from global corporations. Its design and vast floor plans have contributed to an impressive 88% occupancy rate, showcasing its appeal in the competitive real estate market.

The sale price of Dh720 million for Office Park marks a considerable gain above its Fair Valuation as of 30 June 2024. This premium reflects the property's high value and the strategic importance of this transaction to Emirates REIT.

If shareholders greenlight the deal during the EGM, Emirates REIT plans to allocate a portion of the proceeds from this sale to reduce its financial obligations. Specifically, it intends to partially redeem the secured sukuk certificates it issued on 12 December 2022, adhering to the agreed terms and conditions. This step is a crucial component of Emirates REIT's broader strategy to lower its debt levels, taking advantage of the current favorable market conditions. The move follows the recent sale of Trident Grand Mall in July, further indicating Emirates REIT's commitment to its de-leveraging plan.

For those interested in more details regarding this transaction, Emirates REIT encourages a visit to its Investor Relations Page. This platform provides comprehensive information about the REIT's operations, strategic decisions, and financial health, offering transparency and insight to investors and the public alike.

This transaction underscores Emirates REIT's active management of its portfolio to optimize its assets and financial structure. By selling Office Park at a significant premium and using the proceeds to decrease its debt, the REIT is strategically positioning itself for future growth and sustainability.