The Emirates REIT Real Estate Fund announced that it is considering canceling the listing of its shares on the NASDAQ Dubai in light of the decline in the real estate sector in the UAE and the weakness of the stock exchange.
According to Reuters, the fund said in a statement that it is likely that returning to work as a private fund, even if at least temporarily, is in the interest of the fund and its investors.
He continued that the current conditions on the UAE stock exchanges negatively affected the performance of the stock and led to a large unjustified gap between the price and the real value.
The real estate market in Dubai has been experiencing a slowdown for years due to excess chronic supply in conjunction with weak economic growth, a problem that has been exacerbated by the Corona virus crisis.
The fund, which has a market value of approximately $ 45 million, said the decline in the real estate sector and the difficult business climate contributed to its decision to review its options, including the possibility of canceling the listing of shares. .
The fund’s stock was trading at $ 0.15 on Sunday, compared to a net assets value of $ 1.57 per share at the end of 2019.
Earlier on Sunday, Emirates Reet said that its director, Equitativa, was being investigated by the Dubai Financial Services Authority in matters related to the Emirates Reit management, especially evaluation, information, interests, and corporate governance. .
He said that Equitativa intends to cooperate with the investigation.
In a statement to Reuters, the authority confirmed that it is investigating with Equitativa regarding its role as fund manager for Emirates Reet. It said the investigation began on May 24, but without revealing any details.
(Fun Knowledge of Knowledge)
