UAE: GII Islamic REIT is expecting its IPO to take place during the third quarter of the year, most probably in November 2018; it would become the third Shariah compliant REIT to be listed on NASDAQ Dubai after Emirates REIT and ENBD REIT, which went public back in April 2014 and March 2017 respectively.
"We want to go public because many clients and institutions interested in investing in GII Islamic REIT want to be sure that we comply with all rules and policies and the best way to provide them with this confirmation of compliance is through listing. In addition, our feedback from the market is that once we are listed, we will be able to attract more investors and garner more assets," Pankaj Gupta, the founding partner and co-CEO of UAE-based Gulf Islamic Investments, which rolled out GII Islamic REIT in mid-December of 2017, told IFN.
Initially planned for the second quarter of the year, the listing of GII Islamic REIT was postponed due to the summer and Ramadan periods during which economic and financial activities traditionally slow down. GII Islamic REIT also wants to reach the critical size of US$400-500 million of assets under management prior to its IPO. It has already secured approximately US$300 million and is about to onboard US$200 million.
"Further to the strategic MoU signed between GII Islamic REIT and Ajman Bank recently, we expect to sign similar MoUs with some other foreign and regional banks in the GCC in the next three months to increase the fund's investor base," Gupta said.
Etihad REIT and Residential REIT, completing the UAE's Shariah compliant REIT family, are also planning to go public. Etihad REIT's first intention was to go public in 2017 but it reportedly postponed its flotation to the first half of 2018 while Residential REIT has not shared any timeline. It is unclear which stock exchange both REITs are eyeing.
GII Islamic REIT's listing plans were announced simultaneously with the acquisition of a prime Downtown Dubai office property worth US$32 million with gross yields around 8%. The property has a remaining lease of three years and is leased to a global professional services firm, which uses the property as its regional head office. |
JII70: A new liquid Islamic stock index in the Islamic capital market of Indonesia
All this time, the Islamic capital market of Indonesia has two Islamic stocks indices, the Jakarta Islamic Index (JII) as the first liquid Islamic stocks index and the Indonesia Shariah Stock Index (ISSI) as the composite Islamic stock index. Along with market demand and the growth of the Islamic capital market which continues to increase, the Indonesia Stock Exchange (IDX) launched the Jakarta Islamic Index 70 (JII70), a new liquid Islamic stocks index, in May 2018, coinciding with the beginning of Ramadan. |
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