Emirates NBD Asset Management has asked the shareholders in its sharia-compliant real estate investment trust, ENBD REIT, to back its bid to take the fund private.
The fund manager has published a notice announcing plans to hold an extraordinary general meeting on February 12 to get the necessary approval from shareholders to transition to a new fund structure.
The REIT’s management believes that a private structure with a limited-term investment horizon is better suited for shareholders looking to realise improved returns over a fixed time period, said head of real estate at Emirates NBD Asset Management, Anthony Taylor.
The ENBD REIT management also announced a net asset value (NAV) for the fund of $246 million, as of December 31. This is a slight fall from the previous quarter’s NAV of $254 million.
The property portfolio value has also fallen slightly in the last quarter, down from $35 million to $429 million. These losses have been attributed to a general softness in the local real estate market.
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