ENBD REIT secures lease extensions on real estate assets worth $235.5m

ENBD REIT, the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management, has procured $235.5m (AED865m) worth of renewals and lease extensions from tenants including Oracle for four of its largest real estate assets.

These extensions have been secured as on 30 June 2020 for Al Thuraya Tower 1, Burj Daman, Dubai Healthcare City 49, and The Edge.

Together four of these assets represent a lion’s share of ENBD REIT’s office portfolio, with recent leases on five-year terms or more equivalent to 23% of total available office space renewed in these buildings.

In September, ENBD REIT had appointed Savills and Bluehaus Group for the refurbishment of the $77.1m (AED283m) Al Thuraya Tower 1 in Dubai Media City.

In a statement the Nasdaq Dubai-listed investment trust said that new agreements and lease extensions have significantly improved the Weighted Average Unexpired Lease Term (WAULT) of the REIT’s portfolio, increasing from 3.2 years to 3.9 years.

This, according to ENBD REIT, accounts for 43 590m2 of net leasable asset (NLA).

“Securing and sustaining longer-term lease agreements is a core component of our strategy. This is particularly important for tackling the challenges created by COVID-19, a weakened oil price environment, and a soft real estate market,” said Anthony Taylor, head of real estate at Emirates NBD Asset Management.

added: “We are delighted that Oracle and other large tenants across our office portfolio continue to place their trust in ENBD REIT as both a fund and a landlord. Our priority now is to maintain momentum while building on our efforts to lease vacant units.

“For the remainder of 2020 we will focus on asset upgrade programmes across the portfolio, investing in enhancements to bolster value for tenants while making them more attractive to new and existing occupants.

Taylor stressed that improving WAULT directly correlates to the initiatives implemented by the asset management team.

Oracle, which is ENBD REIT’s largest tenant, has renewed its lease at Dubai Internet City’s The Edge building, in which it occupies 7,099.8m2 across five floors, for an additional five years.

The building — second largest asset in ENBD REIT’s portfolio — is valued at $70m (AED251m), as of 30 June 2020.

A green building, The Edge is currently in the processes of attaining LEED certification from the US Green Building Council.


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