REFILE-Investors oppose delisting of Dubai real estate fund amid property slump - Reuters:
Dubai real estate investment trust ENBD REIT is facing opposition to going private from some shareholders who fear the move could further erode its value, two sources said.
The trust, managed by the asset management unit of Emirates NBD, Dubai’s largest bank, has said it plans to delist because of low trading liquidity and a more than 50% discount on its shares versus the net asset value of the fund.
Dubai’s property market has been hit by oversupply and sluggish growth in the private sector, which shrank in the United Arab Emirates in January for the first time since 2009.
The shareholders believe the vehicle’s fee structure rewards its managers without taking fully into account the sector’s condition, and a delisting would not solve the problem, said the two sources familiar with the matter.
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