Emirates Real Estate Fund (Eref), managed by Emirates NBD Asset Management, said it has acquired Binghatti Terraces, a prime residential building in Dubai Silicon Oasis in Dubai, UAE.
The move comes in accordance with Eref’s sustainable growth strategy to invest in income-producing real estate in the UAE, said a company statement.
Binghatti Terraces is a 10-storey residential property with a current gross rental income of Dh14.5 million ($3.94 million) per annum.
Completed in July 2016, the project offers an urban master-planned community and hitech infrastructure within a 10-minute commute to Downtown Dubai.
It boasts of panoramic views of Dubai’s skyline, which can be seen from the property’s terraces, balconies, and outdoor spaces, said the statement.
The development comprises five retail and 201 residential units, including studio-, one-, two-, and three-bedroom apartments, which come with their own balcony or garden terrace area.
Tenants will also have access to facilities including a swimming pool, modern gym facilities, and landscaped gardens, it added.
Over the last 24 months the fund has invested over Dh600 million ($163 millon) in real estate acquisitions, including Arabian Oryx House in Al Barsha Heights, part of Burj Daman in DIFC and Remraam in Dubailand.
Commenting on the move, Tariq Bin Hendi, the chief executive of Emirates NBD Asset Management, said: "Our real estate fund is structured to achieve steady yield improvement and sustainable income generation. We have recently undertaken a series of acquisitions, the most recent of which is Binghatti Terraces."
Post-acquisition, Eref’s asset allocation is 50 per cent commercial real estate and 29 per cent residential, and a significant cash balance of 21 per cent. We anticipate utilising this cash to take advantage of a number of attractive investment opportunities when they become available," he noted.
Eref’s asset portfolio, including cash, is valued at Dh1.5 billion ($408 million) as at June 30, 2016.
Tim Rose, the head of Real Estate at Emirates NBD Asset Management, said: "In addition to acquisitions made over the course of the last 12 months, Eref is also repositioning its portfolio by selling some of its older assets, which no longer support our long-term growth model."
"The fund has consistently paid dividends to investors since its inception. With some evidence of oil prices beginning to stabilise, we expect to see increased interest in the UAE real estate market. Quality residential accommodation is of particular and growing importance for corporates setting up in the region, and this impacts demand for residential real estate," he added.-TradeArabia News Service