The 20,800sqm facility at new Damac development will include a foundation, primary and secondary school
Emirates REIT, a real-estate investment trust, says it plans to spend $56.7 million (AED208.3m) in building a school at the Akoya by Damac development in Dubai.
The Dubai-based firm has agreed with Jebel Ali School to build and enter into a 26-year lease for the new facility, it said in a statement.
Emirates REIT has acquired a freehold land-plot from Damac Crescent Properties for $26.8 million (AED98.5m) including acquisition costs, and leased it to Jebel Ali School. The company has also agreed with the school to build the new facility, construction of which is estimated to cost about $29.9 million (AED109.8m), bringing the total investment amount to AED208.3 million.
When complete, the new school will account for approximately 9.2% of Emirates REIT’s portfolio value of $612.5 million (AED2.25bn), it said.
The new facility, which will be constructed on a built-up area of 20,800sqm, will include a foundation, primary and secondary school, as well as a sports centre and auditorium. It will be Emirates REIT’s second venture into the educational sector, said Sylvain Vieujot, executive deputy chairman of Emirates REIT Management.
“We are delighted to partner with Jebel Ali School, one of Dubai’s most respected schools, and we recognise the long term strength of the sector and its importance to the overall economy. The transaction will enhance rental income from day one and provide long term secure cash flows,” Vieujot said.
The Akoya by Damac development, located close to Umm Suqeim Road, is expected to house over 44,000 residents when complete in 2018, providing an immediate catchment area for the planned school. Demand is also expected from adjacent communities such as Arabian Ranches, Motor City and Dubai Sports City.