(Recasts with official announcement, details)
DUBAI, March 11 The United Arab Emirates' first
real estate investment trust, Emirates REIT, said on Tuesday
that it planned to raise at least 500 million dirhams ($135
million) through an initial public offer of its shares on the
Nasdaq Dubai bourse.
The company will use the proceeds for possible future
acquisitions and investment in existing assets, Abdulla
al-Hamli, chairman of its Management Board, told reporters
without giving a firm time frame for the IPO.
The value of the company is not known yet and the IPO will
be conducted through a book-building process. Nasdaq Dubai IPOs
usually sell at least 25 percent of a company. Current
shareholders will not sell their shares; new shares will be
issued for the IPO.
Emirates REIT, which was formed in 2010 and complies with
Islamic investment principles, appointed Shuaa Capital
sponsor for the IPO while Shuaa and Emirates NBD will
be joint bookrunners.
As of last December, the company had 10 properties
comprising 1.2 million square feet of net leasable area; its
total assets were valued at about $333 million, it said.
Dubai Islamic Bank currently owns 30.9 percent of
the company, two units of the Dubai Holding
conglomerate own a combined 27.1 percent, Emirates NBD owns 4.5
percent, Egyptian investment bank EFG-Hermes has 4.2
percent and Dubai property developer Deyaar has 3.4
(Reporting by Mirna Sleiman; Editing by Andrew Torchia)