Fitch Ratings has assigned Majid Al Futtaim Holding LLC (MAF) a Long-term Issuer Default Rating (IDR) of 'BBB', with a stable outlook, and a short-term IDR of 'F3'.
The ratings reflect MAF's status - through the property arm of the group, Majid Al Futtaim Group Properties LLC (MAFP) - as one of the largest property investment companies in the Middle East and North Africa region (Mena). The consolidated group has a total retail area of 937,214sq m and MAFP had net fixed assets valued at Dh27.2bn as at FYE2010. MAFP's centres are prime sites due to their strategic locations in major cities, up-to-date leisure and entertainment facilities and the availability of large parking lots. MAF is also involved in the development of wholly-owned hotels in close proximity to MAFP's shopping mall assets.
"MAFP's operational performance in 2009 and 2010 was resilient, with the occupancy rate remaining at 99 per cent," says Bashar al Natoor, Director in Fitch's Corporates team in Dubai. "MAFP benefits from an average lease length of seven to eight years, which compares well with European peers, a good quality and diversified tenant base exhibiting an estimated 88 per cent lease renewal rate, and a low tenant default rate."
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