Monday, September 10, 2007

Deyaar to fund its $7bn overseas projects utilizing its share sale proceeds

deyaar properties
Deyaar, an affiliate of Dubai Islamic Bank, has revealed that it has been working on overseas real estate projects, worth $7billion, utilizing the cash from its share sale proceeds.

Although Deyaar was able to raise most of the cash through Islamic bonds and loans, the initial financing will come from the IPO and through the sale of property off the plan, said the Deyaar CEO, Zach Shahin.

Deyaar is currently working on 100 buildings in the UAE, which worth Dh.25billion, revealed Shahin. However, following the footsteps of its rival Emaar Properties, Deyaar too, is pushing itself out of the crowded home market.

Deyaar has projects worth Dh.2billion in pipeline outside the UAE, and a Dh.6billion deal is under negotiation in Abu Dhabi. Shahin says "Although UAE will be our flagship we are bullish about the international markets."

At present, Deyaar is developing projects in Lebanon, Kazakhstan and Turkey and a $5billion township in India with Ansal Properties and Infrastructure Limited. Deyaar also hopes to develop commercial and residential projects in Saudi Arabia on a partnership basis.

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