Emirates Reit IPO 3.5 times oversubscribed

Emirates Reit, the first Shariah-compliant regulated real estate investment trust incorporated in the Dubai International Financial Centre (DIFC), today announced that its initial public offering was 3.5 times oversubscribed.

Emirates Reit increased its base offer from $150 million (Dh 550.5 million) to $175million (Dh642.25  million) – excluding the exercise of the over-allotment arrangements – to meet demand from investors.

Emirates Reit prices its initial public offering of 128.67 million new shares at $1.36 per share (excluding the exercise of the over-allotment arrangements of up to 19.3 million additional shares). Shares have been placed with a broad base of institutional investors in the UAE, the wider GCC and the UK.

Based on the offer price and the total number of shares in issue at listing, Emirates Reit will have a market capitalisation of approximately $381.2 million and a free float of 46%.

The net proceeds of the offer will primarily be used to fund future acquisition opportunities while a portion of the proceeds will be directed towards investment in existing assets. Emirates Reit Management has already shortlisted several potential real estate properties that it believes complement the Reit’s existing portfolio.

Admission of Emirates Reit’s shares to the Official List of Securities of the Dubai Financial Services Authority (DFSA) and to trading on Nasdaq Dubai Limited is expected to commence at 10am, on Tuesday 8 April 2014 under the ticker symbol ‘Reit’.

Shuaa Capital has been appointed as Emirates Reit’s sponsor and Shuaa and Emirates NBD Capital are acting as joint bookrunners in connection with the Offer. EFG Hermes UAE Limited, Abu Dhabi Commercial Bank and Dubai Islamic Bank are acting as co-lead managers.

Abdulla Al Hamli, Chairman of the Reit Manager, said: “I am delighted with the interest and demand we have seen in our shares from institutional investors which I believe clearly reflects the quality of our business and the opportunities present in the UAE real estate market. We believe the pricing of our IPO should encourage a healthy secondary market while the demand we have seen will serve to underpin the next phase of our growth. This is an exciting time in the development of the Reit and we look forward to opportunities presented to us as a listed company.”

Sylvain Vieujot, Executive Deputy Chairman of the Reit Manager, said: “The funds raised in the Offer will enable us to move forward with our acquisition strategy, and we are keen to proceed with some exciting investment opportunities. I am confident that the Reit has the right strategy, management team and governance standards to deliver long term shareholder value.”

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