ENBD Reit, the real estate investment trust managed by Emirates NBD Asset Management, has secured a sharia-compliant financing facility with Mashreq Bank worth $177 million over 12 years.
The money will be used to refinance $134.5 million of existing debt and to provide additional funding for acquisitions and other corporate expenditure.
The sharia element of the financing means that it is profit only for the first four years, amortising 80% over the following eight years and with a 20% balloon payment at the end of the 12-year term.
“The facility that we have secured with Mashreq Bank is important for both refinancing our existing debt – to deliver important cost savings for the REIT – as well as to support our acquisitions programme, said Anthony Taylor, head of real estate at Emirates NBD Asset Management.
“Our intention is to diversify our holdings by increasing allocation to the alternative segment, where we are seeing most growth and resilience in light of current market conditions.”
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