NBAD, Shuaa Capital hired to advise on Etihad REIT IPO

Abu Dhabi Financial Group (ADFG) is launching Etihad REIT, a sharia-compliant real estate investment trust (REIT), and has hired National Bank of Abu Dhabi (NBAD) and Shuaa Capital to advise on a planned initial public offering (IPO).

NBAD and Shuaa Capital will serve as lead financial advisors, global coordinators, and joint bookrunners for the IPO, the statement said, without specifying when the listing would take place.

Etihad REIT comprises a seed portfolio of 10 income producing assets situated in the UAE, and has holdings in various real estate sub-sectors including residential, retail, warehousing and staff accommodation.

The ten properties have been contributed by Etihad REIT’s founding shareholders, which include Abu Dhabi-listed Eshraq Properties.

The assets have a blended occupancy level of over 90 percent, and will be managed by ADFG.

“With the UAE real estate sector maturing while maintaining strong investor appetite, we believe that now is the perfect time to enter the market with Etihad REIT,” said Fawad Tariq-Khan, Director, Investments at ADFG.

“We are actively seeking to acquire further assets across a range of sectors to continue to diversify the portfolio,” he added.

Last month, the Emirates NBD REIT began trading on Nasdaq Dubai, following its $105 million IPO.

ENBD REIT, managed by Emirates NBD Asset Management, issued 94.6 million shares to institutional investors.