Emirates REIT (CEIC) Limited Offer 3.5 times over-subscribed

Dubai, UAE, 3 April 2014: Emirates REIT (CEIC) Limited (“Emirates REIT” or the “REIT”), the first Shari'a compliant regulated real estate investment trust incorporated in the Dubai International Financial Centre (the “DIFC”), today announces that its initial public offering (the “Offer”) was 3.5 times over-subscribed.

Offer Details

• Emirates REIT increases its base offer from US$150 million to US$175million (excluding the exercise of the over-allotment arrangements) to meet demand from investors.
• Emirates REIT prices its initial public offering of 128,676,471 new shares at US$1.36 per share (the “Offer Price”) (excluding the exercise of the over-allotment arrangements of up to 19,301,470 additional shares). Shares have been placed with a broad base of institutional investors in the UAE, the wider GCC and the UK.
• Based on the Offer Price and the total number of shares in issue at listing, Emirates REIT will have a market capitalisation of approximately US$381.2 million and a free float of 46%.
• The net proceeds of the Offer will primarily be used to fund future acquisition opportunities while a portion of the proceeds will be directed towards investment in existing assets. Emirates REIT Management (Private) Limited (the ‟REIT Manager”) has already shortlisted several potential real estate properties that it believes complement the REIT’s existing portfolio.

 Admission of Emirates REIT’s shares to the Official List of Securities of the Dubai Financial Services Authority (“DFSA”) and to trading on NASDAQ Dubai Limited is expected to commence at 10am, on Tuesday 8 April 2014 under the ticker symbol ‘REIT’.

 SHUAA Capital psc (“SHUAA”) has been appointed as Emirates REIT’s sponsor and SHUAA and Emirates NBD Capital Limited are acting as joint bookrunners in connection with the Offer. EFG Hermes UAE Limited, Abu Dhabi Commercial Bank PJSC and Dubai Islamic Bank PJSC are acting as co-lead managers.

Abdulla Al Hamli, Chairman of the REIT Manager, said:
“I am delighted with the interest and demand we have seen in our shares from institutional investors which I believe clearly reflects the quality of our business and the opportunities present in the UAE real estate market. We believe the pricing of our IPO should encourage a healthy secondary market while the demand we have seen will serve to underpin the next phase of our growth. This is an exciting time in the development of the REIT and we look forward to opportunities presented to us as a listed company.”

Sylvain Vieujot, Executive Deputy Chairman of the REIT Manager, said:
“The funds raised in the Offer will enable us to move forward with our acquisition strategy, and we are keen to proceed with some exciting investment opportunities. I am confident that the REIT has the right strategy, management team and governance standards to deliver long term shareholder value.”

Emirates REIT

Emirates REIT is a closed-ended investment company with a mandate to invest in a diversified portfolio of Shari’a compliant real estate properties. It was established in the DIFC on 28 November 2010 by the REIT Manager. Emirates REIT operates under the Collective Investment Rules (“CIR”) of the Dubai Financial Services Authority (“DFSA”) and is the first Shari’a compliant real estate investment trust incorporated in the DIFC. In February 2013, an exclusive Ruler’s Decree was granted to Emirates REIT permitting it to purchase properties in onshore Dubai through its onshore Dubai branch.

Emirates REIT is managed by the REIT Manager which is a joint venture between Dubai Islamic Bank PJSC (“DIB”) and Eiffel Management Limited (“Eiffel”). DIB owns 25% and Eiffel owns 75% of the REIT Manager’s total issued share capital. The REIT Manager was incorporated in the DIFC on 27 October 2010 and is licensed by the DFSA.

In June 2011, Emirates REIT completed its first real estate asset investment when it acquired Building 24 in Dubai Internet City. Since then and up to 31 December 2013, Emirates REIT has acquired various freehold, leasehold and contractual interests in nine other properties, all located in Dubai. These include: Indigo 7 on Sheikh Zayed Road; Loft Offices (Loft 1, Loft 2 and Loft 3) in Dubai Media City; Office Park in Knowledge Village and the GEMS World Academy Dubai building in Al Barsha South. The remaining three properties are located in Index Tower, DIFC and consist of 19 individual retail units located over ground, podium and sky lobby levels; Office level 7; and 491 car parking spaces. These car parking spaces are in addition to the 207 spaces associated with the retail and office units.

As at 31 December 2013, the ten properties comprised 1.2 million sq. ft. of net leasable area and were valued at US$323.1million (AED 1,186.9 million) based on independent valuations prepared in respect of the properties by CBRE DIFC Limited and Asteco Property Management LLC.

For the year ended 31 December 2013, Emirates REIT had profit and total comprehensive income of US$34.8 million, up from US$10.9 million for the year ended 31 December 2012 and US$1.2 million for the 13 month period ended 31 December 2011.

Emirates REIT’s total assets were US$333.2 million as at 31 December 2013 up from US$212.6 million at the end of 2012 and US$70.5 million at the end of 2011. As at 31 December 2013 Emirates REIT’s net asset value per share had risen to US$137.80 from US$114.25 on 31 December 2012 and from US$105.27 on 31 December 2011.