Dubai, United Arab Emirates, 12 May 2022: ENBD REIT (CEIC) PLC (“ENBD REIT” or the “Fund”), the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management, has completed the ambitious upgrade of its flagship Al Thuraya Tower 1 property, creating a sought after, modern and functional high-end office destination in Dubai Media City. The project, which began in [ June 2021], was carried out by interior contractor KPS with Savills acting as project manager and cost consultant.
Since completing the AED 22 million comprehensive refurbishment, high levels of interest have already resulted in new tenants securing 18,000sq ft of office space in the building, reflecting a growing demand from prospective business tenants seeking high quality working spaces with desirable amenities in a prominent area.
Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said:
"The successful completion of this major upgrade of Al Thuraya Tower 1 positions ENBD REIT well to take advantage of a new phase in the evolution of Dubai’s office rental market, in which many tenants are seeking quality spaces that prioritise the health and comfort of their staff in an aesthetically attractive and contemporary environment. The higher occupancy already achieved in the tower, and the increasing interest now being received from prospective occupiers, initially indicates that the strategic decision that we took in 2020 to invest in the future of this flagship asset that has been a cornerstone of our portfolio for over 15 years has been the right one."
The upgrade included a comprehensive fit-out of the foyer and entrance to the building as well as corridors, staircases, and common bathrooms, including lighting and tiling throughout the tower. Lifts, fire escapes and the podium were also upgraded as part of this project. In addition to an improved layout and décor, prayer rooms, yoga/fitness studio facilities and additional access for people of determination were added.
"There are clear signs of stabilisation in the Dubai property market after a challenging period. As occupancy in our flagship building rises, we look forward to the positive impact on ENBD REIT's total rental income which will support continued consistent dividend distributions to our shareholders," concluded Taylor.
Valued at USD 69 million (AED 254 million), Al Thuraya Tower 1 is the one of the largest asset representing 19% of the value of ENBD REIT’s portfolio, which comprises 11 buildings in Dubai across the office, retail and alternative sectors.
