Real estate investment trust in deal to acquire The Edge Office Building in Internet City
ENBD REIT has bought The Edge office building in Dubai Internet City from developer SWEID & SWEID for AED 280 million (USD 76.2 million), according to a company statement.
The 92,000-square foot office building is a prime grade ‘A’ property, according to the Shari’a-compliant real estate investment trust, which is managed by Emirates NBD Asset Management.
The building is home to global tech outfit Oracle, social media giant Snapchat, and American education publisher McGraw Hill.
The seven storey development also boasts 233 parking bays distributed over the ground floor and three levels of basement parking.
The entire asset will deliver a gross yield of 7.4% and a net yield of 6.6%, the trust said.
“We’re pleased to announce our third acquisition since listing on Nasdaq Dubai in March, and it is fitting that The Edge is a fully-leased, prime grade ‘A’ asset,” said Tim Rose, Head of Real Estate at Emirates NBD Asset Management.
“With a levered return of 9% on equity, this is a strategic acquisition of a flagship building that will provide income and growth in the coming years, thereby providing us with flexibility to engage in a wider range of future investment opportunities, while at the same time delivering strong and consistent returns to shareholders.”
Following the acquisition of The Edge on the 5th October 2017, ENBD REIT now has a total of 10 assets across Dubai, with a property portfolio value of $447m.