Tuesday 21 April 2020

#Dubai real estate fund weighs debt options amid downturn -sources - Reuters

Dubai real estate fund weighs debt options amid downturn -sources - Reuters:

Emirates REIT, a Dubai-based sharia-compliant real estate investment trust, is considering buying back some of its roughly $400 million in outstanding Islamic bonds to improve its balance sheet, three sources told Reuters.

The idea is one of a number the company is considering in the face of the economic pressures caused by the coronavirus pandemic, which are weakening an already sluggish property market in Dubai.

The company is also considering refinancing the Islamic bonds, or sukuk, two of the sources said, with one of them adding that talks with local banks had faltered partly because of their exposure to troubled hospital operator NMC Health , which is in restructuring talks with lenders.

Emirates REIT Chief Executive Sylvain Vieujot said a potential sukuk buyback was discussed briefly on a recent earnings call.

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