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ENBD Reit acquires school for Dh55 million

dubai - It takes the total value of the Reit's property portfolio to $367 million

ENBD Reit, the Nasdaq Dubai-listed Shariah-compliant real estate investment trust managed by Emirates NBD Asset Management, has acquired South View School in Remraam. South View School will be Interstar Education's fifth Dubai campus and its second British curriculum school.

ENBD Reit signed a musataha of the plot, and will construct the school for Dh55 million. The deal marks ENBD Reit's first acquisition of an education asset. In May, the Reit acquired the Uninest Dubailand student accommodation building for Dh120 million.

South View School will be operated by Interstar Education, part of Interstar Advisory Services, which currently runs the Victory Heights Primary School in Dubai Sports City. The total project will return an initial rental yield of nine per cent on project costs, with a fixed escalation of four per cent every two years throughout the lease term of nine years with further options to renew. The school pays additional rent during the construction period, equivalent to five per cent on drawdown.

Tim Rose, head of real estate at Emirates NBD Asset Management, said: "We're pleased to announce our second acquisition since listing on Nasdaq Dubai in March. This is our first education asset, and an important step in the ongoing diversification of our portfolio away from office and residential properties."

- business@khaleejtimes.com