News Column

Emirates REIT takes up more floors at IndexTower

June 23, 2014

Staff Report

Dubai: Emirates REIT has acquired over 15 office floors at the Index Tower in DIFC, as part of a deal which also includes 706 parking spaces.

It is paying Dh613.5 million to Emirates NBD Properties for the assets, following which the Emirates REIT portfolio is now valued at Dh2 billion. (The sum paid to Emirates NBD Properties excludes the transfer fees.)

The office floors acquired are currently vacant, having not been offered for lease. Emirates REIT which confirmed a dividend payout of $0.05 (Dh0.18) a share now owns 16 plus floors in Index Tower, offering floor plates for single tenants as well as subdivided space for smaller tenants at a premium.

"This is our largest acquisition to date it demonstrates that there are fantastic opportunities within the Dubai market to invest at attractive prices in prime buildings which offer significant growth," said Sylvain Vieujot, executive deputy chairman of Emirates REIT Management (Private) Ltd.

The office floors are located between Level 4 and Level 25 of the Tower, and comprise approximately 372,000 square feet. of commercial space. Once fully let, the acquisition price of Dh1,650 a square foot could result in a gross yield of 10 per cent based on current DIFC rental values.

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Source: Gulf News (United Arab Emirates)

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