UAE Investment Firm Buys 1,352 Homes, Offices In $272m Deal

Emirates Strategic Investments Company (ESIC) has announced that it has acquired two income-generating, mixed-use properties in the UAE, to be funded by last year’s issuance of a $600 million sukuk.

The AED1 billion ($272 million) property purchase comprises a total of 1,352 residential and commercial units spanning a built-up area of 238,800 square metres and carries an expected net yield of more than 8 percent, it said in a statement.

The deal was funded by ESIC’s AED2.2 billion debut sukuk that was issued in July, part of its $1 billion sukuk programme, which is listed on the London Stock Exchange.

The company, which is owned by Sheikh Mansour Bin Zayed Al Nahyan, said the property purchases are situated in prime locations within the UAE and represent "significant opportunities for resilient income streams".

CEO Khalid Deemas Al Suwaidi said: "Real estate is a key component of ESIC’s diversification strategy. By identifying quality assets and acquiring them at the optimal moment, we bring great value for our sukuk investors. This latest purchase reflects our deep commitment to the continued bolstering of our real-estate portfolio with high-quality, high-yield assets."

He said this deal is part of ESIC’s plan for a series of strategic acquisitions, which will also branch into sectors such as aviation and Government-backed clean energy initiatives.

The company intends to make further acquisition announcements at its upcoming investor conference, he added.