ENBD Reit gets $177mn facility from Mashreq

Dubai / Emirates Business

ENBD Reit, the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has confirmed a $177 million (AED650 million) Shari’a-compliant financing facility with Mashreq Bank.
The facility will refinance as much as $134.5 million (AED494 million) of the Reit’s existing debt — reducing its cost of financing — as well as provide additional funding for acquisitions and corporate purposes.
The 12-year facility is profit only for the first 4 years, amortising 80 percent during the following 8 years with a 20 percent balloon payment at the end of its term. At 3-month EIBOR + 2.65 percent profit margin, the new facility will reduce ENBD Reit’s overall cost of debt.
Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said: “The facility that we have secured with Mashreq Bank is important for both refinancing our existing debt — to deliver important cost savings for the REIT — as well as to support our acquisitions programme. Our intention is to diversify our holdings by increasing allocation to the alternative segment, where we are seeing most growth and resilience in light of current market conditions.”