Nakheel shelves $760mn REIT sale plan

Developer Nakheel has shelved plans to sell as much as $760 million in real estate investment trusts until stability returns to international markets.

The state controlled developer of Dubai’s Palm islands had planned two major real estate investment trust sales in the first and fourth quarters of 2008.

It had planned to list the securities, known as REITS, in Dubai and either London or Singapore.

However that plan has now been delayed until market sentiment improves.

CEO Chris O'Donnell told Arabian Business: “Given where the market is currently, it is unlikely we will get REITS established in this market. I think by the first quarter of next year the markets may have stabilised and we’ll be back in business.”

Nakheel is investing about $30 billion in lavish projects including the Palm and World islands.

The company had planned to sell REITS to help fund a massive construction programme that will include the Manhattan-sized Dubai Waterfront that will add 70km of new coastline to the emirate.

Nakheel sold about $2 billion in bonds last year and announced another $980 million bond sale in May. Last month the developer said it would aim to raise a further $1.2 billion from selling bonds.

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