Eiffel buys remaining 25% stake in Emirates Reit Management

Eiffel Management yesterday bought out the remainder of the manager of the UAE’s first real estate investment trust from Dubai Islamic Bank (DIB).

Eiffel, a French asset management company, bought the outstanding 25 per cent stake from the bank, which means that Eiffel now owns all of Emirates Reit Management’s share capital.

The firms did not disclose the value of the transaction.

A Reit tracks the values of real estate assets owned by a trust. Emirates Reit holds 11 properties in Dubai, including the Index Tower and Gems World Academy.

The portfolio has a value of Dh2.2 billion. More than half of the holdings are in commercial property.

Emirates Reit, which was launched in 2010, was the first Sharia-compliant product of its kind in the UAE.

The trust has increased in value by about 40 per cent since its market debut.

While DIB has sold its stake in the trust manager, it maintains an interest in the trust itself.

“Dubai Islamic Bank has played an instrumental role in the development of the Reit with Eiffel Management, supporting this successful project, including the listing of the Reit on Nasdaq Dubai last year,” said Abdulla Al Hamil, the managing director of Dubai Islamic Bank.

“The Reit has developed according to its initial plans, and DIB now wants to be able to concentrate on its role as a strategic shareholder of the Reit.”

Sylvain Vieujot, chairman of Eiffel Management, said: “Since its inception Emirates Reit has developed a solid portfolio of strong income producing assets, today valued at more than Dh2.2bn.”

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