Amanat Holdings has made headlines by successfully selling a Dubai-based education real estate asset for an impressive AED 453 million (US$123.35 million). This strategic move underscores the company’s robust position in the education sector within the UAE and reflects its long-term commitment to enhancing shareholder value through calculated investments and timely transactions.
The transaction is anticipated to yield a net cash return of AED 294 million (US$80 million), offering an unlevered cash-on-cash multiple of 1.7x and an internal rate of return of 10 percent. This sale exemplifies Amanat’s strategic approach to optimizing its portfolio and maximizing returns from its education real estate assets.
Amanat Finalizes Sale of School Property
The sold asset includes the property of North London Collegiate School located on Ras Al Khor Road. Amanat initially acquired this property in June 2018 for AED 360 million (US$98 million) and subsequently invested an additional AED 33 million (US$9 million) for capital expansion, raising its total investment to AED 393 million (US$107 million).
Amanat’s operational strategy revolves around a cycle of ‘identify, grow, monetise’. This approach targets high-potential assets, accelerates their growth trajectory, and carefully times monetization to secure optimal returns. The proceeds from this sale will further facilitate unlocking value for shareholders and allow for reinvestment into similar lucrative opportunities.
Dr. Shamsheer Vayalil, Chairman of Amanat, remarked: “The sale of our non-core education real estate asset at a compelling valuation is a testament to Amanat’s ability to identify, grow, and strategically exit our high-quality investments. This transaction broadens our strategic options and reflects our continued focus on unlocking value and generating superior returns for shareholders.”
John Ireland, Chief Executive Officer, expressed satisfaction with the transaction, stating: “We are pleased to have completed the sale of our education real estate investment at a premium to our original investment, delivering a compelling financial return. It demonstrates the strength of Amanat’s investment model – from disciplined entry and portfolio development to value-led monetization.”
He added, “The AED 453 million in proceeds from this transaction enhances our balance sheet and provides flexibility to return value to shareholders and deploy capital into new opportunities that are aligned with our strategic priorities. We remain focused on scaling our high-performing assets and continuing to deliver strong and sustainable shareholder value.”