Dubai's Al Mal Capital REIT Expands Portfolio with Kent College Acquisition

Al Mal Capital REIT (AMCREIT), the first real estate investment trust (REIT) on the Dubai Financial Market (DFM), has bolstered its educational sector holdings through the acquisition of Carnation Education LLC. Carnation Education holds the freehold land and buildings of Kent College Dubai, a well-established K-12 institution.

This strategic move expands AMCREIT's portfolio diversification and strengthens its presence across multiple emirates. The company now boasts assets in Dubai, Sharjah, and Ajman, solidifying its position as a key player in the UAE's real estate investment landscape.

The acquisition comes on the heels of a successful rights issue by AMCREIT in April 2024. Naser Al Nabulsi, Vice Chairman and CEO of Al Mal Capital, highlighted that the Carnation Education purchase fulfills the company's commitment to its unitholders by strategically deploying the raised capital.

Financial details of the acquisition have not been publicly disclosed. However, the deal significantly increases AMCREIT's Assets Under Management (AUM) to nearly 1 billion UAE dirhams (approximately $272. 2 million).

Looking ahead, AMCREIT sees the K-12 education sector as a promising avenue for growth. The recent surge in new school openings across Dubai underscores the sector's positive trajectory. By capitalizing on this momentum, AMCREIT is well-positioned to expand its AUM further and solidify its standing within the Dubai real estate market.

The acquisition benefits not only AMCREIT but also potentially strengthens Kent College Dubai's long-term stability. The 25-year lease agreement with the option for renewal provides a secure operating environment for the school. This stability can contribute to the college's continued growth and development, ultimately benefiting students and faculty alike.

Al Mal Capital REIT's move to acquire Carnation Education signifies the growing investor confidence in Dubai's real estate market, particularly within the education sector. This deal is likely to be followed by further strategic acquisitions that capitalize on the emirate's flourishing educational landscape.

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