Emirates REIT's Office ParkEmirates REIT's Office Park

The Initial Public Offering (IPO) of Emirates REIT (CEIC) Limited was 3.5 times oversubscribed. This was revealed by the REIT in an official announcement released 3 April. Emirates REIT is the first Shari'ah compliant regulated real estate investment trust incorporated in the Dubai International Financial Centre (DIFC).

Emirates REIT is a closed-ended investment company with a portfolio of Shari’ah compliant real estate properties. It was established in the DIFC on 28 November 2010. Up to 31 December 2013, Emirates REIT holds a portfolio of various freehold, leasehold and contractual interests in ten properties in Dubai including Office Park in Knowledge Village and the GEMS World Academy Dubai building in Al Barsha South.

Emirates REIT priced its initial public offering of 128,676,471 new shares at USD1.36 per share. Based on the IPO price and the total number of shares in issue at listing, Emirates REIT will have a market capitalisation of approximately USD381.2 million. The REIT indicated that it has placed the shares with a broad base of institutional investors in the UAE, the wider GCC and the UK.

Trading of shares in Emirates REIT on NASDAQ Dubai Limited is expected to commence at 10 am on Tuesday 8 April 2014 under the ticker symbol ‘REIT’. The REIT is planning to use net proceeds from the IPO exercise for funding future acquisition opportunities while a portion of the proceeds will be directed towards investment in existing assets.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.