Dubai – Mubasher: ENBD REIT is currently considering several potential acquisitions in Dubai, Abu Dhabi, and northern region of the UAE within the framework of an asset diversification plan, head of real estate Anthony Taylor said.

Net asset value amounted to AED 1.1 billion in the first half of 2018, after paying dividends and return on equity in June, Taylor added.

He indicated that the company’s real estate portfolio was valued at AED 1.7 billion, including diversified investments in 11 properties, such as offices, residential properties, and alternative real estate assets, according to Al Bayan Newspaper.

The UAE-based REIT is planning to expand its portfolio in the remaining period of this year through acquisitions, as well as benefit from available debt facilities, he highlighted.

The Sharia-compliant real estate investment trust managed by Emirates NBD Asset Management is still targeting real value from a number of acquisitions amid the market’s current scene and the increase in interest rates, which may boost costs, Taylor said.

ENBD REIT’s leasing activities in the current portfolio have retreated due to the market situation and are expected to improve in the coming seasons, he continued.

In June, Taylor told Mubasher that ENBD REIT was planning to expand its footprint across the UAE through new acquisitions. He had stated that ENBD REIT “would like to see 50% to 75% of the portfolio in Dubai, 10% to 20% in Abu Dhabi and up to 10% in other Emirates, subject to strong tenant covenants.”

"As a UAE REIT, we remain focused on making acquisitions within the Emirates, however, we will continue to diversify our portfolio through the different asset types. With regard to our investment strategy, we have maintained a focused approach to both sectors and geographies, provided the targets meet our investment criteria of long-term and stable leases, solid income generation, and potential for capital appreciation," Taylor stated.