EREF secures AED 700m finance facility

Dubai – Mubasher: Emirates Real Estate Fund (EREF) has procured a Shari’ah compliant finance facility worth $190.6 million (AED 700 million) with Emirates NBD, according to a statement.

The new facility will contribute to creating a more efficient capital structure and restructuring the balance sheet to enhance returns to investors.

EREF’s fund manager, Emirates NBD Asset Management, has allocated a portion of the partially undrawn facility for future possible acquisitions.

The undrawn facility is a profit-only Mudharabah facility for five years, with a 10% repayment of principal in its fourth year.

The loan-to-value ratio of the fund is expected to be below 50% after utilisation and full draw down of the facility.

The fund has invested over $163 million (AED 598.699 million) in real estate acquisitions over the last 24 months,

Mubasher Contribution Time: 22-Jan-2017 09:01 (GMT)
Mubasher Last Update Time: 22-Jan-2017 09:01 (GMT)