Dubai – Mubasher: ENBD REIT acquired South View School in Dubai’s Remraam Community, according to a statement.
The real estate investment trust signed a Musataha of the plot, and will construct the school at a total transaction value of AED 55 million ($15 million).
The school will pay additional rent during the construction period, equivalent to 5% on drawdown, the statement said.
The deal marks ENBD REIT’s first acquisition of an education asset.
The total ground floor area of the school will be 132,000 square feet on a plot covering 183,504 square feet.
The project will return an initial rental yield of 9% on project costs, with a fixed escalation of 4% every two years throughout the lease term of nine years.
In May, the REIT acquired the Uninest Dubailand student accommodation building for AED 120 million ($33 million).
