Companies Investments

By: Mahmoud Gamal

Dubai – Mubasher: Damac Properties, the leading Dubai-based real estate developer, is looking forward to continuing its operations and projects delivery in 2020 despite the challenges facing the real estate sector, in terms of the witnessed decline in prices, the Emirati billionaire and chairman of Damac Hussain Sajwani said.

In an interview with Mubasher, Hussain Sajwani highlighted that the company will focus on handing over the units as well as the completion of all the projects that have been launched over the past years.

Damac is aware of the market’s future needs, Sajwani said, pointing out that the company sets its strategic plans to meet the current and future demands in Dubai.

“In line with the ongoing development in Dubai and with the expats choosing the city to be their long-term settlement place, the company focuses on building multi-use residential communities that enable residents to live and work while enjoying social and recreational activities,” the chairman told Mubasher.

The Emirati mogul stressed that Damac’s vision complies with Dubai’s expectations, noting that the company will carry on its vital role in the development process in Dubai.

Investments

Despite challenges over the past years, the real estate sector has been a profitable addition to the portfolio of wealthy investors, Sajwani said.

The Emirate succeeded in achieving a great progress over the past years, making it an attractive option for investors from across the globe, he indicated.

Damac’s chairman added, “Due to the advanced lifestyle, integrated infrastructure, and comfort it provides to residents, Dubai has become one of the most appealing cities in the world for investment.”

Adaptability

Sajwani projected the real estate sector to go through different situations, in terms of the intensity of supply and demand, pointing out that investors and buyers always prefer the flexible market that offers adaptation and prompt response to its different states.

The long-term forecasts for the real estate market in Dubai are still positive, backed by the recent government initiatives that will boost the market, he noted.

These initiatives include the recently announced laws by the UAE government regarding the long-term residency visas for expats and the 100% ownership for foreigners.

The sector is likely to be stable in 2020. However, the market is expected to witness a significant increase in prices.

Supply and demand

Sajwani said that volatile supply and demand in dynamic markets, such as the real estate market, are healthy and help boost innovation,.

Although the real estate market experiences these swings occasionally, it is sometimes pushed by the supply while in other times the demand is the controller, Damac’s chairman explained, adding that the supply in the property market is currently higher than the demand; therefore, the market is witnessing purchasers in the current time.

Investors that are aware of the market will take advantage of this point to guarantee benefit once the state of demand arises, he noted.

Higher Real Estate Committee

The Emirati tycoon remarked that it is a positive step to form a Higher Real Estate Planning Committee headed by Vice President and Prime Minister of the UAE and Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum.

This move reflects the UAE’s leadership strategy in establishing a strong economy, not relying only on crude oil and also able to compete globally, Sajwani highlighted.

The Real Estate Planning Committee will help leading developers to communicate effectively and set the proper future plans for the real estate economy, he clarified.

This committee will also help developers avoid repetition in real estate projects, in addition to setting an integrated strategy for all the large-scale projects to be launched in Dubai within the next ten years, he noted.

New hopes

The real estate sector is expected to leap after it has witnessed a slight slowdown in 2018, Hussain Sajwani told Mubasher.

Damac’s chairman emphasised that Dubai’s leadership has directed the economy towards economic growth and progress.

Aiming to shift Dubai and the UAE towards the knowledge economy, Sheikh Mohammed bin Rashid Al Maktoum’s long-term vision has boosted investors’ confidence in the real estate market in Dubai, Sajwani added.

Expats now tend to settle in the UAE for long terms after it was previously considered as a destination for transit, Sajwani highlighted, pointing out that this change has remarkably impacted the property sector by turning tenants into owners.

 

Translated by: Mai Ezz El-Din

Abu Dhabi - Mubasher: Abu Dhabi-based Aldar Properties on Wednesday announced that its wholly-owned subsidiary Aldar Investment Properties LLC will start a series of fixed income investor meetings in Europe, Asia, and the Middle East as of 10 October 2019.

These meetings will be held to promote a fixed rate US dollar-denominated sukuk issuance with a tenor of 10 years, according to a press release.

“The outcome of the issue is subject to market conditions and further announcements in this regard will follow in due course,” Aldar Properties said.

Subject to market response, the offer is set to be priced on 15 October 2019, the leading property development, investment, and management company highlighted.

Aldar has appointed Dubai Islamic Bank (DIB), First Abu Dhabi Bank (FAB), HSBC, and Standard Chartered Bank as joint global coordinators and joint lead managers.

The company has also mandated Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB), Emirates NBD Capital, and Sharjah Islamic Bank as joint lead managers.

It is worth noting that Aldar Investments is rated ‘Baa1’ by Moody’s.

On 8 October, Reuters reported that Aldar Investment Properties had hired a group of banks to arrange investor meetings ahead of a planned US dollar-denominated sukuk or Islamic bonds.

Tiger Properties, a subsidiary of Tiger Group, launched the Blue Waves Tower project in Dubai’s Liwan, with total investments of AED 500 million ($136.13 million).

Situated on one million square metres, the project includes 600 residential and commercial units, and offices, along with a 1,500 metres promenade, recreational and play areas, and a parking space, according to a company statement released on Saturday. 

The construction of the project is expected to be completed in the beginning of 2022, Tiger Properties’ CEO, Amer Al Zoubi, said.

Tiger Group is currently executing a group of projects in the Emirate of Dubai, which are slated for completion in the next few years.

UAE - Mubasher: Ellington Properties, a Dubai-based award-winning design-led boutique developer, on Monday announced it has signed an AED 150 million agreement with leading entrepreneur Abdul Razeq Abdul Ahad, through Déjà Vu Real Estate, a leading real estate brokerage.

Under the agreement, the two parties will work jointly to build a new residential tower in a central location in Dubai, according to a press release.

Abdul Razeq Abdul Ahad commented: “Déjà Vu Real Estate recommended Ellington Properties for this significant investment in Dubai’s property sector based on its insightful understanding of the industry. We trust Ellington’s competencies in building design-centered homes for the new generation that will secure strong returns.”

Moreover, Nitin Bhatnagar, co-founder of Ellington Properties, said: “This partnership is in line with our strategy of building up to 1,000 residential units annually, which will meet the aspirations of customers, who value the distinctive Ellington proposition. We are focused on expanding our portfolio through such strategic partnerships that enable us to deliver the right product offering at the right prices in the market.”

Work on the new residential tower’s design and master-plan will commence shortly, Ellington indicated.

This partnership will add to Ellington’s growing portfolio of projects in Dubai, which includes popular developments such as Belgravia II, Belgravia Heights II, and Belgravia Square.

Dubai – Mubasher: Emaar Properties, a leading global property developer, has raised $500 million from the sale of the 10-year US dollar-denominated sukuk, according to a document issued by one of the banks managing the deal.

The sukuk issuance has received orders of around $2.5 billion, including $300 million of interest from the banks arranging the deal, Reuters reported, citing the document.

The transaction is part of a $2 billion debt programme which offers investors between 250 and 255 basis points over mid-swaps.

Earlier this month, Emaar announced it had appointed Standard Chartered Bank as sole global coordinator of the 10-year sukuk issue and Dubai Islamic Banks as Shariah advisor.

UAE - Mubasher: Sharjah Holding, a strategic partnership between Majid Al Futtaim Properties and Sharjah Asset Management, announced it has launched Orchid, its latest neighbourhood.

The new project features a limited number of exclusive residential plots that range from 5,000 square feet to 12,000 square feet, with ready infrastructure at Sharjah’s premier lifestyle destination, according to a press release.

Residents of Orchid will have access to Al Zahia’s Central Park, mosque, and clubhouse, and infrastructure-enabled land will be ready in 2021.

Orchid will enable buyers for the first time to design and build bespoke luxury mansions and villas at Al Zahia, the release noted.

The neighbourhood will be officially launched on Saturday, 14 September at Al Zahia Sales & Experience Centre.

Buyers can enjoy a number of flexible payment plans with a down payment of 5%, the release highlighted.

Shadi Al Azzeh, Al Zahia Project Head at Majid Al Futtaim Properties, said: “We are constantly striving to meet our customers’ needs, and the launch of Orchid’s premium plots reflects Al Zahia’s maturity and appeal and the strong growing demand from distinctive customers who aspire to create unique homes for their families at Sharjah’s premier lifestyle destination.”

Waleed Al Sayegh, Chairman of Sharjah Holding, said: “Widely recognised as a centre for culture, heritage and education, Sharjah is also a hub for investment. The appeal of the emirate’s advanced infrastructure, legislation, economic stability and geographic location was reflected in real estate transactions valued at more than AED 14 billion in the first half of 2019.”

Al Zahia, located in the heart of New Sharjah, will be embracing over 12,000 residents in villas, townhouses, and apartments upon completion in 2023.