ENBD REIT (CEIC) Limited, the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has opened the Souq Extra Retail Centre in Dubai Silicon Oasis.
The opening ceremony was attended by the REIT’s chairman, Tariq Bin Hendi, and Saleh Saeed Lootah, chairman of Souq Extra.
ENBD REIT acquired Phase 1 of the development in December 2017, with 100 per cent occupancy including blue-chip tenants Carrefour Market, KFC, McDonald's and Starbucks.
ENBD REIT acquired the community retail centre at a gross yield of 9.9 per cent and net yield of 8 per cent. Phase 1 has 36,000 sq ft of gross leasable area comprising 42 fully-let retail units. The REIT has also agreed on terms to acquire Phase 2 of the development on completion in the last quarter of 2018, at an 8 per cent net yield. Phase 2 will comprise a 77,000 sq ft expansion with a floating glass roof utilising sculptural and geographic forms to create a natural light environment transitioning between day and night atmospheres.
The retail strategy focuses on core community services including a regional medical centre, a popular children’s nursery, a well-known fitness centre, activity-based entertainment concepts, premium F&B and fast-casual indoor and outdoor dining concepts, a statement said.
Bin Hendi said: “Souq Extra Retail Centre is an important asset for ENBD REIT, representing a fully-let and high-quality community centre in the heart of Dubai Silicon Oasis, an up-and-coming commercial and residential district. It has been our pleasure to work with the Souq Extra team, and we look forward to a long and fruitful relationship. In the last 12 months, we have put a heavy emphasis on diversifying our portfolio into the ‘alternative’ asset class – from retail to student accommodation and education. This asset perfectly fits our prevailing diversification strategy.”
Lootah commented: “We are committed to enhancing urban areas by delivering efficient, healthy and resilient property outcomes on behalf of trusted partners such as the Dubai Silicon Oasis Authority and ENBD REIT. Souq Extra has focused on building a ‘culture of winning behaviours’ through developing pillars of sustainability, innovation, customer service and human capital, where we put customers at the centre of our decision making by critically asking ourselves three fundamental questions: What are the needs of our customers? Where are they currently being under-served? How can we serve our customer better? Souq Extra DSO Phases 1 & 2 is a perfect example where the team have listened and delivered.”
ENBD REIT holds a total of 11 properties across Dubai’s office, residential and alternative asset classes. As at March 31, 2018, the REIT’s total property portfolio value stood at $463 million, with a Net Asset Value (NAV) of $300 million or $1.18 per share, and total occupancy of 89 per cent. ENBD REIT’s stock is traded on Nasdaq Dubai under the ticker symbol ‘ENBDREIT’.
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