Dubai – Mubasher: Emirates REIT has started a consent solicitation process to exchange existing unsecured Sukuk certificates with new secured Sukuk certificates.
The new certificates will be secured by a very substantial part of Emirates REIT's assets, as they include security over several revenue-generating properties, such as part of Index Tower in DIFC, Office Park, Trident Grand Mall, the 3 Loft Offices buildings, and Building 24, according to a recent press release.
Emirates REIT expects that Sukuk holders will benefit by moving from the current unsecured Sukuk to the new secured Sukuk.
The Managing Director of Houlihan Lokey, Arun Reddy, said: "The proposed transaction is designed to provide a dollar-for-dollar exchange of unsecured Sukuk to a secured Sukuk with the intention of maintaining an effective profit rate of 5.125% and extending the maturity by two years."
The CEO of Equitativa, Sylvain Vieujot, commented: "This is a voluntary transaction designed to support the Sukuk holders and is the most investor-friendly option we could envision which provides security, over all the properties we could mortgage, to our new Sukuk holders."
