Deal Completion: Dubai Investments Park Warehouses – Tranche 1

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Sunday 18 September 2016 

Rasmala has recently completed the successful acquisition of 72 warehouses in Dubai covering nearly 600,000 sq.ft. for approximately AED 300 million in partnership with Ajman Bank and other leading Gulf investors.

Strategic Location

Located in Dubai Investments Park, a mixed-use industrial, commercial and residential complex, the site benefits from close proximity to Jebel Ali Free Zone, a major regional sea port and business hub in the Emirate.

The acquisition of the warehouses is through a sale and leaseback arrangement for the next seven years. These properties are sub-let to a diverse group of 31 high quality tenants operating in sectors such as Food and Beverage, Retail and Manufacturing. The transaction was financed through a combination of equity and a Shari’a compliant financing facility, with Ajman Bank participating as a strategic seed investor and sole financier.

Attractive Return and Secure Cash Flows

  • Income-producing asset with downstream security over rental payments from ultimate warehouse tenants
  • Lessee is a very well-established UAE-based conglomerate
  • The 7-year lease to lessee grants secured cash flows, with target cash dividend yield of approximately 10% p.a.
  • Buyback option secures an exit price at the end of 7 years

About Rasmala Investment Banking

Rasmala Investment Banking focuses on the creation and distribution of Shari’a-compliant asset-backed and capital markets instruments. Run by a team of professionals with global expertise and local knowledge, the division originates and executes asset-backed transactions, and invests alongside clients in the Gulf Cooperation Council (GCC) region and other countries. The division’s main service offerings include:

  • Debt Capital Markets
  • Islamic Financing and Deal Structuring
  • Real Estate

In 2015, Rasmala Investment Banking team completed the acquisition of 3 commercial UK properties for regional investors with an aggregate transaction value of over USD 90 million. The Investment Banking team continues to grow its real estate offering and capabilities by expanding into European and US opportunities. The team is committed to develop UAE real estate products to take advantage of attractive opportunities in the local market and plans to arrange further asset-backed sukuk. Rasmala’s Investment Banking differentiates itself by the quality of its structuring expertise, which establishes Rasmala as a market leader in terms of innovation.

Best Regards,

Rasmala

If you require more information about this deal or Rasmala’s other investment opportunities, please contact our team.