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,