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Wednesday, 03 December 2008 06:55 UAE time

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Nakheel eyes IPO 'in next 12 months'

by This email address is being protected from spam bots, you need Javascript enabled to view it  on Thursday, 04 September 2008
IPO POSSIBLE: for Palm developer Nakheel Properties.

Government-owned Nakheel Properties, developer of Dubai's palm-shaped islands, will decide on a public listing in the next 12 months as it expands rapidly in the Gulf and abroad, its chief executive has revealed.

"In the next 12 months time, we need to pursue whether there could be an IPO or not," Chris O'Donnell.

Nakheel if listed could become one of the biggest companies in the Gulf, comparable to listed rival Emaar, which has a market capitalisation of around $15 billion.

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O'Donnell's comments come in the same week as reports linking Damac Properties with a potential IPO launch.

The developer is thought to be planning to list on the Dubai Financial Market (DFM) by early 2009.

Nakheel, which took a 20 percent stake in Canada's Cirque du Soleil along with an affiliated company in August, is looking to purchase assets in the United States, Britain and Australia in the next 12-18 months following a slump in property prices.

"These markets are definitely in a cyclical decline and they will offer some very good buying opportunities in the next 12 to 18 months - I don't think any earlier than that," O'Donnell told Reuters in an interview.

He said the group would review purchases across those markets, including commercial real estate, hotels and retail space.

The group already owns $20 billion in assets outside its home market of Dubai.

"We'll be redirecting our cash to where the major opportunities are. At the moment the opportunities are Dubai-based," he said.

In addition to considering an IPO the group is pursuing all forms of capital raising, he said, including traditional debt issues, private equity, real estate investment trusts and direct project financing from banks.

O'Donnell said Nakheel was "comfortable" with its current stake of around 15 percent in Australia's Mirvac Group.

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READER COMMENTS

  1. Nakheel mulls $15bn IPO move - reports 2
    02 Dec ' 08 at 11:25
    In my view, this about-turn is really making things worse. First they're not affected. Woohoo we're building the world's tallest...  More »
  2. Negative equity, defaults 'now a Dubai reality' 1
    02 Dec ' 08 at 12:02
    I have purchased off plan villas and now I am in negative equity. But I dont need to run. I just refused to pay developer any further...  More »
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