Monday, August 24, 2009
Al Mazaya to invest $100m in Dubai Property
Al Mazaya Holding plans to invest $100m or AED 367 million in properties in The Palm Jumeirah, Burj Dubai and Dubai International Financial Centre areas. The move aims to set up an income generating portfolio for the firm, which expects to start buying properties from September. 'We have put $50m aside and other investors from Kuwait have committed to invest the other $50m. We feel the market has hit the bottom,' Khalid S. Esbaitah, CEO of Al Mazaya Holding said.
Saturday, August 22, 2009
Dubai Holding completes merger of its property, business parks units
UAE. Dubai Holding today announced that the first phase of the company's realignment has been completed with the formation of two verticals, Property and Business Parks.
The formation of these two verticals is the first step in executing the full realignment into four verticals, as announced recently, in order to streamline its operations and ensure the continued delivery of world-class projects and future growth of the organization.
The verticals allow Dubai Holding to build on its core competencies in two major specializations and effectively bring together complementary assets across the business, allowing access to greater benefits for customers. Existing project plans will remain in place.
The Property vertical integrates and leverages the strengths and portfolios of Dubai Properties Group with Sama Dubai, as well as Tatweer's real estate development projects including Remraam, The Tiger Woods Dubai, Dubailand and Bawadi, to create one of the largest real estate and development based businesses in the region. Each business brings considerable and distinctive strength to the Property vertical.
The Business Parks vertical integrates the existing operations of Tecom Investments with Dubai Healthcare City and Dubai Industrial City, thus expanding the focus of the development of innovation in information, communication, media and knowledge to also include healthcare and industrial development.
Ahmad Bin Byat, CEO, Dubai Holding, said: 'The process of realignment has led to the development of Dubai Holding into a more efficient organisation, able to respond more effectively to the needs of its stakeholders. The transition has been smooth and had minimum impact on our relationships with our partners and clients.'
Source: www.Bi-me.com
The formation of these two verticals is the first step in executing the full realignment into four verticals, as announced recently, in order to streamline its operations and ensure the continued delivery of world-class projects and future growth of the organization.
The verticals allow Dubai Holding to build on its core competencies in two major specializations and effectively bring together complementary assets across the business, allowing access to greater benefits for customers. Existing project plans will remain in place.
The Property vertical integrates and leverages the strengths and portfolios of Dubai Properties Group with Sama Dubai, as well as Tatweer's real estate development projects including Remraam, The Tiger Woods Dubai, Dubailand and Bawadi, to create one of the largest real estate and development based businesses in the region. Each business brings considerable and distinctive strength to the Property vertical.
The Business Parks vertical integrates the existing operations of Tecom Investments with Dubai Healthcare City and Dubai Industrial City, thus expanding the focus of the development of innovation in information, communication, media and knowledge to also include healthcare and industrial development.
Ahmad Bin Byat, CEO, Dubai Holding, said: 'The process of realignment has led to the development of Dubai Holding into a more efficient organisation, able to respond more effectively to the needs of its stakeholders. The transition has been smooth and had minimum impact on our relationships with our partners and clients.'
Source: www.Bi-me.com
Dubai group sells Mirvac stake
MIRVAC, the property developer, has lost its largest shareholder after Dubai group Nakheel dumped its final holding on the market yesterday in a $206 million deal.
Nakheel emerged as Mirvac's cornerstone investor less than two years ago and steadily built up its stake in the group to 12 per cent. But the group has been gradually selling down its shareholding over the past year, even though it spent $95m to participate in Mirvac's recent $1.1billion equity raising.
It made the surprise decision yesterday to quit the remaining 6.1 per cent of stock on market, prompting speculation a deal was needed to address Nakheel's financing issues in its home market.
A block trade of the Dubai company's remaining stock, 172 million shares, was carried out by Deutsche Bank, which placed the stock with a range of institutional investors at $1.20.
The trade was done at a marginal discount to the $1.25 to $1.27 range in which it was trading before the placement was carried out.
The transaction will earn Nakheel about $206m and effectively ends the group's ambitious foray into the Australian commercial property market.
Mirvac chief executive Nicholas Collishaw last night told The Weekend Australian the property group would not, with the exit of its largest investor, lose its firepower in pitching for developments. "It means for us, from our point of view, business as usual," Mr Collishaw said.
"It has come as a surprise. If there is a range of institutions that have taken over the big line of stock that has gone through, then I think we will end up with a more stable investor base."
Nakheel emerged as a potential player in January last year when the group, which is part of the state-owned Dubai World Group, paid $680m to take a 12 per cent stake in Mirvac.
Its initial ownership purchase was done at $5.20 a share.
The Dubai property developer has been a mixed shareholder for Mirvac, after it refused to participate in a capital raising in November last year that effectively diluted some its stock holding.
The group did, however, buy into the June deal when Mirvac raised $1.1bn to strengthen its balance sheet.
Nakheel spokesman Natasha Boukhary refused to respond to written questions from The Weekend Australian last night.
The group had originally planned to compete for the right to develop the Barangaroo site on the western fringe of Sydney Harbour.
Nakheel had flagged its looming debt issue in Dubai, with the property division facing refinancing commitments of $US3.5bn due this year.
Dubai World has been forced to sell assets globally, with one of its cornerstone investments, the Queen Elizabeth 2 luxury ship, expected to be sold.
Source: The Australian News
Nakheel emerged as Mirvac's cornerstone investor less than two years ago and steadily built up its stake in the group to 12 per cent. But the group has been gradually selling down its shareholding over the past year, even though it spent $95m to participate in Mirvac's recent $1.1billion equity raising.
It made the surprise decision yesterday to quit the remaining 6.1 per cent of stock on market, prompting speculation a deal was needed to address Nakheel's financing issues in its home market.
A block trade of the Dubai company's remaining stock, 172 million shares, was carried out by Deutsche Bank, which placed the stock with a range of institutional investors at $1.20.
The trade was done at a marginal discount to the $1.25 to $1.27 range in which it was trading before the placement was carried out.
The transaction will earn Nakheel about $206m and effectively ends the group's ambitious foray into the Australian commercial property market.
Mirvac chief executive Nicholas Collishaw last night told The Weekend Australian the property group would not, with the exit of its largest investor, lose its firepower in pitching for developments. "It means for us, from our point of view, business as usual," Mr Collishaw said.
"It has come as a surprise. If there is a range of institutions that have taken over the big line of stock that has gone through, then I think we will end up with a more stable investor base."
Nakheel emerged as a potential player in January last year when the group, which is part of the state-owned Dubai World Group, paid $680m to take a 12 per cent stake in Mirvac.
Its initial ownership purchase was done at $5.20 a share.
The Dubai property developer has been a mixed shareholder for Mirvac, after it refused to participate in a capital raising in November last year that effectively diluted some its stock holding.
The group did, however, buy into the June deal when Mirvac raised $1.1bn to strengthen its balance sheet.
Nakheel spokesman Natasha Boukhary refused to respond to written questions from The Weekend Australian last night.
The group had originally planned to compete for the right to develop the Barangaroo site on the western fringe of Sydney Harbour.
Nakheel had flagged its looming debt issue in Dubai, with the property division facing refinancing commitments of $US3.5bn due this year.
Dubai World has been forced to sell assets globally, with one of its cornerstone investments, the Queen Elizabeth 2 luxury ship, expected to be sold.
Source: The Australian News
Friday, August 21, 2009
Do we see rebound in property market on 2011?
The property market in Dubai is stabilising and set for a rebound in 2011, according to the latest research but there is still a concern in the industry about over supply.
There are indication that Dubai property market is improving because of the volume of transactions has remained consistent in the 1st half of 2009 and because of the lessening gap between asking and the achieved prices.
The stabilisation of transactional volumes is an important indicator which reflects improved confidence among investors and the market is beginning to stabilise albeit at significantly lower levels of pricing than those seen earlier in the year,' explained Craig Plumb, head of research at Jones Lang LaSalle Mena division
Asking prices for properties have fallen 49 percent from their peak in the third quarter of 2008, but the rate of decline slowed in the second quarter of this year. The asking prices have fallen more sharply than achieved prices in 2009, which is another indicator of price stabilization.
There are indication that Dubai property market is improving because of the volume of transactions has remained consistent in the 1st half of 2009 and because of the lessening gap between asking and the achieved prices.
The stabilisation of transactional volumes is an important indicator which reflects improved confidence among investors and the market is beginning to stabilise albeit at significantly lower levels of pricing than those seen earlier in the year,' explained Craig Plumb, head of research at Jones Lang LaSalle Mena division
Asking prices for properties have fallen 49 percent from their peak in the third quarter of 2008, but the rate of decline slowed in the second quarter of this year. The asking prices have fallen more sharply than achieved prices in 2009, which is another indicator of price stabilization.
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