Real estate investment trust, Emirates REIT, has acquired European Business Centre (EBC) in Dubai Investments Park (DIP) at a purchase price of $35.4m (AED130m).
According to Emirates REIT, it is expecting the transaction to generate an internal rate of return (IRR) of more than 10% and, upon completion, will see its total portfolio crossing $816.8m (AED3bn).
A G+3 commercial building, EBC has more than 25,377m2 (273,164ft2) of net leasable area and an occupancy rate of 87%, with 101 corporate tenants.
The property features a 6,939m2 (74,690ft2) retail area and a basement parking space with a capacity of 600 vehicles.
The acquisition marks the real estate investment trust’s second transaction in DIP, having secured a lease on a plot of land in September 2016, and the 10th property in its Dubai portfolio.
Commenting on the acquisition, Sylvain Vieujot, chief executive officer of Equitativa Dubai, the company managing Emirates REIT, said: “This is a prime commercial asset in Dubai Investments Park, secured at an exceptional price of $1,395 per square metre (AED476ft2).
“Upon completion of the transaction, the building will immediately enhance the REIT's cash flow and, over the longer-term, we expect significant capital appreciation, especially following the completion of the adjacent metro station.”
Route 2020, a project Dubai is implementing in anticipation of Expo 2020, will extend the emirate’s metro system from Nakheel Harbour and Tower Station to the expo site. The extension will include an underground DIP station.