Dubai Properties, a subsidiary of Dubai Properties Group, today confirmed an agreement with Emirates REIT, the UAE's first real estate investment trust.
Under the agreement, Dubai Properties contributed the revenue generating property "Office Park" to the fund and as a result became a shareholder in Emirates REIT.
Emirates REIT was established in 2010 to provide market entry opportunities, liquidity and stable long term returns for investors and now holds over 580 million Dirhams of income generating properties.
Office Park is a 374,000 square feet prime commercial and retail property located in Dubai Internet City. The building provides institutional quality space and enjoys strong occupancy levels due to its location within DIC and the close proximity of services and facilities within the free-zone. Major multinational and local corporations are the anchor tenants of the building.
Speaking about the recent agreement, Khalid Al Malik, Group CEO of DPG, said "We are pleased to enter into this agreement with Emirates REIT at a time when we are seeing positive momentum in the market. It will bring further liquidity and opportunity to the market and ourselves. The agreement reflects our plan to optimize our balance sheet for the long term future." Abdulla Al Hamli, Chairman of Emirates REIT Management, said "We are delighted to enter into this agreement with Dubai Properties and welcome them as a significant shareholder in Emirates REIT. This acquisition will help us deliver strong returns in 2012, to build on the 10.54% net annualized return achieved in 2011. We look forward to working with Dubai Properties on acquiring further unique assets."