Equitativa in a collaboration with Al Hamra Real Estate Development and National Bonds has launched UAE’s first residential Real Estate Investment Trust (Reit) to help enhance the country’s net revenue as it has been on the down road for almost 2 years.
The Residential Reit is going to include the portfolio of about 500 homes in Dubai and Ras Al Khaimah (RAK). The step of launching this Reit has been taken by keeping the increased interest of both institutional and private investors in mind.
Back in 2014, Equitativa incepted the UAE’s first Reit named as Emirates Reit that owns a portfolio of 371 homes for lease in Al Hamra Village in RAK, Barton House, a block of 112 apartments in Dubai’s Motor City and another property in Dubai valued at Dh99 million. As of now, the Reit has a total of Dh517 million worth portfolios and is expected to raise another Dh 500 million from individuals and financial institutions.
“For an IPO (Initial Public Offering), you need this size and good market conditions,” says Sylvain Vieujot, Chairman, Equitativa.
The company has recently included Abu Dhabi Global Market (ADGM), a financial institution, in Abu Dhabi’s new financial free zone. Furthermore, it established four new funds – Hospitality Property Fund, Logistics Fund, The Residential Reit and Sportativa – through its asset management branch in ADGM.
“I believe that there could well be an appetite for residential reits in the UAE from institutions which would like exposure to the UAE housing market but don’t want the hassle of managing the property themselves,” says Sanyalak Manibhandu, Research Head, NBAD Securities.