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DUBAI / Emirates Business
FIVE Holdings, the Dubai-based real estate development and hospitality group previously known as
SKAI Holdings, has launched a AED2.10bn (USD570m) real estate investment trust (REIT), the region’s first hospitality focused REIT and the largest to date.
The REIT, to be regulated by the Abu Dhabi Global Market (ADGM) and Financial Services Regulatory Authority (FSRA), will include FIVE Holdings’ AED4.3bn (USD1.17bn) Viceroy Dubai Palm Jumeirah, as well as all future projects subject
to compliance with regulatory requirements.
REITs issue securities in the form of shares that invest in income generating real estate including mortgages and may be traded like a stock when offered to the public. REITs allow investors to have an underlying stake in real estate, which in turn allows them to diversify their exposures and investments, as well as benefitting from long-term capital appreciation
FIVE Holdings also unveiled its new corporate identity for the first time. Previously known as SKAI Holdings, the firm’s new name and philosophy is based on the five elements and reflects the group’s continued ambition to grow its current property portfolio of USD2bn.
“Real estate is major contributor to the UAE economy and FIVE Holdings continuously looks at new ways to innovate and ensure that our investors have more avenues to investing their money. Owning units in a REIT instead of holding the title to
a physical asset means investors will be able to buy and sell at a lower cost and with more flexibility. Investors will be able to monetise faster in a public offer by owning units within a REIT as opposed to a physical asset,†said Kabir Mulchandani, Chairman & CEO, FIVE Holdings.