Musharaka Financial Company, as the fund manager of Musharaka REIT, announces the initiation of the acquisition process of a new property located in Dubai, UAE, for a total value of AED 46,000,000 (Forty-Six Million UAE Dirhams). The acquisition follows a real estate appraisal from two independent valuers.
The target property is one of the largest self-storage warehouses in the Middle East, consisting of three fully equipped floors built to international storage standards. It is strategically located on Sheikh Zayed Road and benefits from a high-quality tenant, as the property will be leased back to the seller, “The Box Self Storage” (operated by The Box Self Storage Services Ltd.).
Transaction and Property Details:
- Country: United Arab Emirates
- City: Dubai
- Land Area: 5,378.26 sqm
- Built-up Area: 13,860 sqm
- Leasable Area: Approximately 9,732 sqm
- Acquisition Price: AED 46,000,000
- Annual Net Rental Income: AED 4,000,000
- Rental Increase: 10% every five years
- Lease Term: 25-year binding lease, extendable for an additional 5 years
- Rental Guarantees: 48 post-dated bank cheques covering the entire lease period
- Property Age: New
- Location: Jebel Ali 1, Dubai, facing Sheikh Zayed Road
- Tenant: The Box Self Storage Services Ltd.
- Tenant’s Business: Self-storage services (www.theboxme.com)
Financial & Strategic Impact
- The transaction will be financed through the fund’s available Shariah-compliant banking facilities.
- The financial impact post-acquisition is expected to be positive, contributing to higher fund earnings and lower revenue volatility risks.
- The long-term, binding lease enhances cash flow stability and supports the fund’s profitability and sustainability.
The administrative and legal procedures for the property ownership transfer are expected to be completed within 90 days from this announcement.