- The fund has invested over AED 600 million in real estate acquisitions in the last 24 months
- EREF’s recent acquisitions support a strategy to reposition asset allocation favouring newer assets and sustainable growth
Dubai, United Arab Emirates: Emirates Real Estate Fund (EREF), managed by Emirates NBD Asset Management, has announced its acquisition of Binghatti Terraces in Dubai Silicon Oasis. In accordance with EREF’s sustainable growth strategy to invest in income-producing real estate in the UAE, Binghatti Terraces is a residential building with a current gross rental income of approximately AED 14.5 million per annum. Over the last 24 months the fund has invested over AED 600 million in real estate acquisitions, including Arabian Oryx House in Al Barsha Heights, part of Burj Daman in DIFC and Remraam in Dubailand.
Commenting on the acquisition, Tariq Bin Hendi, CEO of Emirates NBD Asset Management said:
“Our real estate fund is structured to achieve steady yield improvement and sustainable income generation. We have recently undertaken a series of acquisitions, the most recent of which is Binghatti Terraces. Post-acquisition, EREF’s asset allocation is 50% commercial real estate and 29% residential, and a significant cash balance of 21%. We anticipate utilising this cash to take advantage of a number of attractive investment opportunities when they become available.”
EREF’s asset portfolio, including cash, is valued at AED 1.5 billion as at 30th June 2016.
Tim Rose, Head of Real Estate at Emirates NBD Asset Management, commented:
“In addition to acquisitions made over the course of the last twelve months, EREF is also repositioning its portfolio by selling some of its older assets, which no longer support our long-term growth model. The Fund has consistently paid dividends to investors since its inception. With some evidence of oil prices beginning to stabilise, we expect to see increased interest in the UAE real estate market. Quality residential accommodation is of particular and growing importance for corporates setting up in the region, and this impacts demand for residential real estate.”
Binghatti Terraces is a 10-story residential property in Dubai Silicon Oasis that was completed in July 2016. The property offers an urban master-planned community and state-of-the-art infrastructure a short ten minute commute to Downtown Dubai. Binghatti Terraces offers panoramic views of Dubai’s skyline, which can be seen from the property’s terraces, balconies, and outdoor spaces. The development comprises 5 retail and 201 residential units, including studio, one, two, and three-bedroom apartments, which come with their own outdoor balcony or garden terrace area. Tenants will also have access to facilities including a swimming pool, modern gym facilities, and landscaped gardens.
The newly opened property is expected to attract considerable interest from corporate clients, and is currently being showcased at Cityscape Global in Dubai (stand 3F10, Hall 3).
About Emirates NBD Asset Management:
Emirates NBD Asset Management Limited (Emirates NBD Asset Management), established in the Dubai International Financial Centre and regulated by the Dubai Financial Services Authority as a Category II Firm, is the wholly owned asset management business of Emirates NBD Bank, one of the largest banks by assets in the MENA region. Emirates NBD Asset Management provides a wide range of investment solutions, from in-house managed public funds to tailor-made discretionary solutions. It manages funds across a variety of asset classes, including MENA equity and global fixed income, global risk profiled solutions, UAE real estate, and a wide range of Shari’a compliant instruments, structured to cater for diverse risk appetites.
Each of the Emirates NBD Asset Management managed funds are currently domiciled in either Jersey (regulated by the Jersey Financial Services Commission) or Luxembourg (regulated by the Luxembourg Commission de Surveillance du Secteur Financier). As at 30th June 2016, Emirates NBD Asset Management had assets under management of approximately USD 3.5 billion.
About Emirates Real Estate Fund (EREF):
Emirates Real Estate Fund (EREF) is a Shari’a compliant open-ended investment company incorporated in Jersey, in the Channel Islands, and Emirates NBD Asset Management is the delegate investment manager. The objective of the fund is to acquire and accumulate a diverse portfolio of real estate assets, predominantly in the UAE, with the aim of generating rental income and capital appreciation for its investors in the mid-to-long term. Assets are actively managed by the team in order to maximize return on property. The fund also has the ability to invest in the wider GCC real estate market, should the opportunity arise. EREF currently aims to retain some liquidity by maintaining an element of the portfolio in cash or cash equivalent instruments [at all times]. All assets held by the fund are Shari’a compliant as approved by the Emirates NBD Asset Management Shari’a board.
About Binghatti Developers:
Binghatti Developers is an innovative Dubai based property developer led by CEO & Head of Architecture Mr. Muhammad BinGhatti. The dynamic company offers iconic properties with groundbreaking architectural designs, world class materials, and unrivaled lifestyle amenities. With origins dating back to 1875, the brand seeks to redefine the norms of the industry by delivering reasonably priced high quality projects in a timely manner.
Binghatti Developers’ approach has allowed the company to successfully deliver projects for some of the largest Banks, Hotel groups, and Real Estate Funds in the world, while also offering holistic solutions for end users. Within a short time-frame, the company has proven itself as a viable alternative to some of the larger market players in Dubai, strengthening its reputation with an extensive portfolio of completed projects.