GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> Banking and Investments

 
  Share
  • ENBD REIT to develop South View School for AED 55 million 
  • The acquisition grows ENBD REIT's total portfolio value to USD 367 million 
  • The school will be Interstar Education's fifth Dubai campus
Dubai, United Arab Emirates, 6th August 2017:  ENBD REIT (CEIC) Limited (“ENBD REIT”), the Nasdaq Dubai-listed Shari'a compliant real estate investment trust managed by Emirates NBD Asset Management, announces that it has acquired South View School in Dubai's Remraam Community. South View School will be Interstar Education's fifth Dubai campus and its second British curriculum school, which is in line with the firm's vision of developing high quality, affordable schools in Dubai. ENBD REIT signed a Musataha of the plot, and will construct the school at a total transaction value of AED 55 million (USD 15 million). The deal marks ENBD REIT's first acquisition of an education asset, as part of its strategy for diversifying its property portfolio into alternative real estate. In May, the REIT acquired the Uninest Dubailand student accommodation building for AED 120 million (USD 33 million).
 
South View School, once complete, will be operated by Interstar Education, part of Interstar Advisory Services, which currently runs the successful and well-established Victory Heights Primary School in Dubai Sports City. The total ground floor area of the school will be 132,000 sq. ft. on a plot covering 183,504 sq. ft. The total project of approximately AED 55 million will return an initial rental yield of 9% on project costs, with a fixed escalation of 4% every two years throughout the lease term of 9 years with further options to renew. The school pays additional rent during the construction period, equivalent to 5% on drawdown. 
Commenting on the acquisition, Tim Rose, Head of Real Estate at Emirates NBD Asset Management, said:
 
“We're pleased to announce our second acquisition since listing on Nasdaq Dubai in March. This is our first education asset, and an important step in the ongoing diversification of our portfolio away from purely office and residential properties. It is a pleasure to be working with Interstar Education, a renowned and established schools operator in Dubai, and we look forward to a long and fruitful relationship. The UAE's education sector continues to prosper and grow, and we are very proud to have become a part of that journey.”
 
South View School's rental agreement is based on a FRI (Future Rent Increase) triple net lease, with the tenant covering all OPEX, CAPEX, ground rent and associated property and community charges. The school will open to pupils, to whom it will teach the British curriculum, in September 2018, with works already underway on site. 
 
Following acquisition and completion of the development, the ENBD REIT property portfolio's total value will be USD 367 million, with a net asset valuation (NAV) of USD 292 million, or USD 1.15 per share. Loan-to-value (LTV) ratio on gross asset value (GAV) is 29%, with occupancy of 87% across the portfolio. The portfolio's weighted average unexpired lease term (WAULT) increases to 3.63 years, with offices accounting for 59% of the portfolio, residential accounting for 27% and alternative assets (including education) making up the remaining 13%. ENBD REIT has a total of 9 properties across Dubai. 
 
Amit Kothari, Executive Director of Interstar Education, commented:
“We are delighted to be working with ENBD REIT on the development of South View School, our first K-12 British curriculum school in Dubai. The school is in line with our vision of developing high quality, affordable schools in the UAE. The REIT has a long track record for acquiring and managing high quality assets in strategic locations, and an experienced and dedicated management team, with whom it is our pleasure to partner and develop a long-term relationship. We are very much looking forward to opening the doors of our school to pupils in September 2018, and are now hard at work on delivering another first class educational institution in Dubai.”
 
Since its establishment in 2000, Interstar Education has provided schooling to 15,000 children across five campuses in the UAE and India. The Group runs two Delhi Private Schools in the UAE, and first entered the British curriculum with Wonder Years Nursery in Dubai Sports City. It has since established Victory Heights Primary School, which has enjoyed considerable success. South View School will be Interstar's fifth UAE campus. ENBD REIT is a leading Shari'a compliant Real Estate Investment Trust, invested in properties across Dubai's office, residential and alternative real estate asset classes. In March 2017, the Company successfully raised USD 105 million when it listed on Nasdaq Dubai. 



Posted by : GoDubai Editorial Team
Viewed 9248 times
Posted on : Sunday, August 6, 2017  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : E-archiving is an enabler in prepping for VAT
Next Story : AlJeel Capital signs an exclusive UAE franchise with Shakey's
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
24 Karat Gold Elixir by Mehrunisa Launches in the UAE Beauty Market
Interview with Asil Attar, CEO of Al Yasra Fashion
Festive Gift Sets from Bubble T
Get Ready for Party Season with Lottie's new make-up hits
Holiday Gifting Made Easy with Wet n Wild Beauty Specials
DKNY Launches (Limited Edition) Holiday 2018 Collection
Tissot PR100 Lady Sport – Chic Glamourous Festive Season
Winter wool Christmas must- haves
New 1948 Seamaster Watches Join the Ranks'
Samsung Galaxy A9 – Designed to capture the world in its fullest
Tissot PR100 Lady Sport – Chic Sporty yet Feminine
Chic and Stylish Wraps with a 3 in 1 effortless concept
Michael Kors Collection Transeason 2019 Press Presentation
Dubai Shopping Festival Wednesday Specials at The Smile Bar
Santa is Coming to Town!
9th Edition of China Homelife Exhibition to Have Over 3000 Exhibitors Across Bus...
New Menu alert: Moombai & Co. launches exciting and delicious food items to its menu
Els Back for the 30th Omega Dubai Desert Classic Aiming for a Record Fourth Victory
CITIZEN's “#MyBetterStartsNow” campaign seeks out UAE's inspired and driven indi...
UAE students win top awards at international math competition in Malaysia
Enjoy 11 exciting new street entertainment shows at BOLLYWOOD PARKS™ Dubai
Model of the Year Takes Camo to Catwalk Level
Get Party Ready with Champion Cleaners
Marni Introduces Marni Rothko, A 7-layer Acetate Frame With a Vivid, New Color ...
'Introducing the GUESS Jeans Fall 2018 Collection'
Raja Al Gurg is one of Forbes Magazine's 100 most powerful women in the world
Extra Fort Automatic continues to set style standards
Over 80 developers showcase top projects at Indian Property Show in Dubai
Ring in the New Year With Four Firework Shows at Dubai Festival City Mall
Johnny Depp Wears a Corum Bubble Skull
Nine winners honored by DQG for their innovative ideas at the 10th Global Contin...
Puma and Hasbro Announce New Collaboration
Jury Announced for Epson's First Ever Win-A-Robot Competition in Europe, The Mid...
Over 2,000 Cyclists Took Part in the Cycle Challenge of the Year
Spinneys Dubai 92 Cycle Challenge | Road Closure Timings
His Highness Sheikh Saud discusses collaboration with British Consul-General And...
Listen to the Autism Beat Gala Dinner at Atlantis - The Palm
SAVEX 11 TO 15 DECEMBER 2018
Bawabat Al Sharq Mall is all set to welcome an exciting festive season with 'Wi...
Arla Foods launches initiative with UAE Ministry of Education to promote healthi...
CBUAE and Central Bank of China meet to Enhance Renminbi Clearing in the UAE
Al Hosn Now Open to the Public
It's a Wrap! The Second JLT Restaurant Awards Conclude with a Glitzy Ceremony At...
Julphar to Launch Wearable Insulin Delivery Device in GCC
Joe's Backyard Opens at the Holiday Inn, Dubai Festival City
Young Emirati Champion Rashid Al Dhaheri Powers Ahead to Stunning Victory at the...
Dubai Islamic Bank triumphs at Islamic Business and Finance Awards 2018
University of Balamand Dubai and Emicool agree MoU for student scholarships
Cosy, chic coats from Marks & Spencer
Health Authorities advocate early screening for prevention of cardiovascular disease.