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Abu Dhabi / Emirates Business
Abu Dhabi Financial Group (ADFG) is launching Etihad REIT, a Shariah-compliant real estate investment trust (REIT). The REIT comprises a seed portfolio of 10 income producing assets situated in the UAE.
Etihad REIT expects to raise further capital through an initial public offering (IPO) on a stock exchange in the UAE at an appropriate time and subject to regulatory approvals. SHUAA Capital and National Bank of Abu Dhabi have been appointed as lead financial advisors, global coordinators, and joint bookrunners for the planned IPO.
Etihad REIT is the most diversified REIT in the UAE today, with holdings in a variety of real estate sub-sectors including residential, retail, warehousing and staff accommodation.
The ten properties contributed by Etihad REIT’s founding shareholders, which include Eshraq Properties, make up the mixed-use portfolio, and are situated in well-established locations across the UAE. The assets have a blended occupancy level of over 90 per cent, and will be managed by an Abu Dhabi Financial Group company.
Fawad Tariq-Khan, Director, Investments at ADFG, said: “With the UAE real estate sector maturing while maintaining strong investor appetite, we believe that now is the perfect time to enter the market with Etihad REIT. Its existing portfolio is both well balanced, with the high occupancy rates providing impressive income returns. The REIT is highly diversified, offering exposure to four real estate sub-sectors across four Emirates, and we are actively seeking to aquire further assets across a range of sectors to continue to diversify the portfolio.â€
Etihad REIT’s experienced management team benefits from ADFG’s strong international track-record that includes managing more than US$5 billion of
assets globally.