PC: Yahoo! Finance
A real estate investment trust, or REIT, is in the pipeline from Dubai Holding to cash in on the growing demand in Dubai’s property market. It is said that the conglomerate is working with CitiGroup Inc, HSBC Holdings PLC, and Emirates NBD Capital on the trust offering.
This will provide investors with access to high-value, income-generating assets within the emirate, one of which is recently transferred properties to Dubai Holding.
Dubai Holding boasts huge interests in real estate and hospitality sectors that have been developing significant proportions of the city’s urbanscape through its direct subsidiaries, namely, Dubai Properties and Meraas. The group has recently expanded the portfolio by merging with Nakheel, which has iconic projects like Palm Jumeirah, and Meydan, which is the owner of the world-famous racecourse of Dubai. The two developers are being brought under the umbrella of Dubai Holding, a strategic move that looks to streamline and consolidate the real estate offerings of the city.
All of these prime real estate assets are likely to form part of the REIT, meaning investors could tap into income-generating properties with stable and predictable returns. This would be an attractive proposition for those interested in investing in Dubai’s frantic property market in the years that have experienced a significant upsurge, driven by commercial and mixed-use developments, as well as strong demand for residential property.
Included in REIT coverage are other assets held, such as the hospitality group of Jumeirah Hotels & Resorts, which owns the Burj Al Arab hotel, famously known to be considered a seven-star hotel, and several five-star luxury hotels spread across the Middle East, Asia, and Europe. This will also include hospitality-related assets, thus adding diversification in its products that investors could acquire.
This strategic initiative reflects the ambition of Dubai Holding to reinforce its presence in the market through offering the investment community the platform to participate in the emirate’s thriving property sector. Being a global hub for business, tourism, and luxury living, this REIT is expected to attract considerable attention from local and international investors interested in exposure to quality income-generating properties.
The setting up of the REIT places Dubai Holding in a position to jump off the continued growth the emirate’s realty market is experiencing, and it will also open an avenue for other investors to benefit from the sector’s strong performance.
