Emirates Real Estate Fund acquires residential property in Dubai’s Silicon Oasis

The fund has invested more than Dhs600m in real estate acquisitions in the last 24 months

Emirates Real Estate Fund (EREF), a Shariah compliant investment firm managed by Emirates NBD, has announced the acquisition of a residential building in Dubai’s Silicon Oasis.

Binghatti Terraces is a 10-floor residential property completed in July 2016 with a current gross annual rental income of Dhs14.5m.

It comprises five retail and 201 residential units, including one-, two- and three-bedroom apartments, with facilities including a swimming pool, gym and landscaped gardens.

The acquisition from local property firm Binghatti Developers is part of the Jersey-incorporated fund’s strategy to invest in income producing assets.

The value of the deal was not disclosed.

EREF, which is run by Emirates NBD’s wholly owned asset management arm, has invested more than Dhs600m ($163.3m) in real estate acquisitions in the last 24 months, including Arabian Oryx House in Al Barsha Heights, part of Burj Daman in DIFC and Remraam in Dubailand.

Tariq Bin Hendi, CEO of Emirates NBD Asset Management, said the fund’s asset allocation was 50 per cent commercial real estate and 19 per cent residential with a cash balance of 21 per cent.

“We anticipate utilising this cash to take advantage of a number of attractive investment opportunities when they become available,” he said.

EREF’s asset portfolio, including cash, is valued at Dhs1.5bn ($408.3m) as of June 30 2016, according to the company.

Time rose, head of real estate at Emirates NBD Asset Management, said the fund was also repositioning its portfolio by selling some of its older assets.