Abu Dhabi’s ADFG to launch real estate investment trust – Banking & Finance

Abu Dhabi Financial Group (ADFG) has announced plans to launch Etihad REIT, a Shariah-compliant real estate investment trust (REIT).

The REIT comprises a seed portfolio of 10 income producing assets situated in the UAE, the company said in a statement.

It added that Etihad REIT expects to raise further capital through an initial public offering (IPO) on a stock exchange in the UAE at an appropriate time and subject to regulatory approvals.

SHUAA Capital and National Bank of Abu Dhabi have been appointed as lead financial advisors, global coordinators, and joint bookrunners for the planned IPO.

Etihad REIT has holdings in a variety of real estate sub-sectors including residential, retail, warehousing and staff accommodation, ADFG said.

The 10 properties contributed by Etihad REIT’s founding shareholders, which include Eshraq Properties, make up the mixed-use portfolio, and are situated in well-established locations across the UAE.

Fawad Tariq-Khan, director, Investments at ADFG, said: “With the UAE real estate sector maturing while maintaining strong investor appetite, we believe that now is the perfect time to enter the market with Etihad REIT. Its existing portfolio is both well balanced, with the high occupancy rates providing impressive income returns. 

“The REIT is highly diversified, offering exposure to four real estate sub-sectors across four Emirates, and we are actively seeking to aquire further assets across a range of sectors to continue to diversify the portfolio.”