Burooj to triple capital, plans 2010 IPO

CAPITAL GROWTH: Burooj plans to increase its capital to $408 million prior a planned IPO in 2010, Al Zarouni said. (ITP images)

Burooj Properties, a subsidiary of Abu Dhabi Islamic Bank, plans to triple its capital base ahead of a proposed initial public offering (IPO) in 2010, aimed at financing its growing portfolio.

Managing Director Adel Al Zarouni said on Tuesday that Burooj, which has projects worth 18 billion dirhams ($4.9 billion) in development, expects to boost that figure to about 50 billion dirhams by 2013.

"We are increasing the company's capital prior to the IPO to 1.5 billion dirhams by next year and plan to have the company ready for public offering in 2010," he told newswire Reuters on the sidelines of Cityscape Abu Dhabi.

"The pre-IPO capital will be through our mother company, Abu Dhabi Islamic Bank," he said, declining to give more details about the public offering.

Burooj, set up in 2005, has a paid-up capital of 500 million dirhams. The company has developed two hotels in Dubai and plans to launch new projects elsewhere in the UAE later this year, Al Zarouni said.

"We are expanding internationally with our first project in Cairo, that will be launched before end of this year. It is a residential, 800,000-square metre project," he said, declining to specify the investment outlay.

"We are also looking at developing real estate projects in Syria, Algeria and some other Middle East [and] North Africa countries in the coming years," he said, without elaborating.

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