Emirates REIT, one of Equitativa’s units, has successfully sold Office Park, its Grade A commercial asset in Dubai Internet City, to Tecom Investment, a wholly-owned subsidiary of Tecom Group. Equitativa is the largest real estate investment trust manager in the GCC.
The property’s Fair Valuation as of June 30, 2024, is significantly less than the agreed-upon sale price of AED720 million ($196 million).
According to Equitativa, by the terms and conditions, the net sale proceeds will be utilized to partially redeem the secured Sukuk certificates issued in December 2022 and reduce Emirates REIT’s banking facilities.
According to the statement, the Office Park sale’s completion takes advantage of favorable market conditions, enabling Emirates REIT to realize large gains and lower its FTV to less than 26%.
Announcing the successful sale, Thierry Delvaux, CEO of Equitativa, said: “We appreciate the strong support of our shareholders in approving this transaction, which was an important step in reducing financing costs and delivering value to Emirates REIT’s stakeholders.”
“This further strengthens our financial position and ability to pursue future growth opportunities,” he added.
