ENBD Reit buys Dubai school marking debut in education sector

LONDON: ENBD REIT, a Dubai-based real estate investment trust (REIT), has acquired its first school in the emirate in a deal valued at 55 million dirhams ($15 million).
It bought the South View School development in Dubai’s Remraam community on the outskirts of the city, which will become Interstar Education’s fifth Dubai campus.
“This is our first education asset, and an important step in the ongoing diversification of our portfolio away from purely office and residential properties,” said Tim Rose, head of real estate at Emirates NBD Asset Management.
Real estate investment trusts are expected to take off in the UAE and Saudi Arabia as investors look for a more diversified alternative to direct investment in property.
ENBD REIT signed an agreement to develop a 132,000 square feet school on the plot which will generate an initial rental yield of about 9 percent.
In May it paid $120 million to buy the Uninest Dubailand student accommodation building in the city.
South View School will be run by Interstar Education, which also operated Victory Heights Primary School in Dubai Sports City.
ENBD REIT is a Shariah-compliant real estate trust managed by Emirates NBD Asset Management, part of Dubai’s biggest bank.
The school will open to pupils, to whom it will teach the British curriculum, in September 2018.

Construction work has already started.
ENBD REIT listed its shares on Nasdaq Dubai in March after raising about $105 million through an initial public offering.
The company earlier said it aimed to have about half of its assets in the office sector, with between 20 percent and 30 percent in residential and the rest in a mix of schools, warehouses, hotels and other long term leases.