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29 March 2024

National Bonds looks at buying realty assets across UAE

Published
By Parag Deulgaonkar

After refraining from investing in the realty sector for the past two years, National Bonds Corporation (NBC) is once again looking at buying income-generating real estate across the UAE, Emirates 24/7 can reveal.

 “At the moment our investment team is continuously evaluating opportunities in income generating real estate sector mainly in the UAE territory,” company Chief Executive Mohammed Qasim Al Ali said.

The move to review investment in realty assets is part of the company’s balanced asset allocation strategy stipulated by the board through its investment committee.

In October 2010, Al Ali told this website that National Bonds was keeping away from investing in the real estate sector. The Dh1.6 billion Skycourts development, which has over 2,800 apartments across six towers in Dubailand, is the only real estate project developed by the company.

"We shied away from real estate investment in 2009 and have no plans to invest this year," he had said.

A Global Investment House report, released Tuesday, said, prices in Dubai’s property market was stabilizing but Abu Dhabi was likely to face a downward pressure.

Anecdotal evidence suggests that a number of local and international companies have been looking at buying income generating assets across the UAE, but finding one has been a Herculean task.

Most of the GCC-based funds are focusing on buying assets in old Dubai, especially Bur Dubai and Deira, where prices have been relatively stable while occupancy levels have remained high compared to properties in new Dubai.

Asked if National Bonds had bought Nakheel sukuk from any trade creditor, Al Ali said: “We view that such sukuks will be a good investment opportunity considering the high yields to maturity generated especially with the future plans for Nakheel.”

In June, he told this website that they were looking at buying Nakheel sukuk since it was likely to offer a good profit rate. Nakheel, earlier this month, said it will be offering a 10 per cent profit rate, payable half yearly, to sukuk holders.

The Shariah-compliant savings scheme is wholly owned by the Investment Corporation of Dubai, which acquired the remaining 50 per cent stake from Emaar Properties, Dubai Holding and Dubai Bank, in March.