Dubai real estate fund ENBD REIT faces 'significant pressure'; asset value falls | ZAWYA MENA Edition
Dubai’s ENBD REIT, a Shariah-compliant real estate investment trust, managed by the asset-management arm of Emirates NBD, has seen a further deterioration in the value of its portfolio due to the slowdown triggered by the coronavirus.
Its net asset value (NAV) as of September 30, 2020 stood at $198 million, down by $32 million from the $230 million recorded in March 31. The fund’s property portfolio was also lowered from $410 million to $377 million due to the slowdown in the property market.
ENBD REIT has a diversified portfolio of residential, office and alternative assets in the UAE.
The property market in the UAE has been impacted by the coronavirus pandemic, with rental values, sale prices and occupancy levels posting monthly declines amid a slump in demand.
The latest data showed that occupancy levels in ENBD REIT’s portfolio have indeed softened in recent months, averaging at 76 percent in September 2020, down from 82 percent in March 2020. Lower uptake has been observed in residential properties like the Binghatti Terraces and Arabian Oryx House.
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