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Kuwait developer eyes Dubai homes with $100m fund
Kuwait-based Al Mazaya Holding has earmarked $100 million to buy properties in Dubai, it was reported on Monday.
The real estate firm is targeting homes on The Palm Jumeirah, Burj Dubai and Dubai International Financial Centre area, CEO Khalid S Esbaitah said.
"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. It is very attractive to buy now, as this opportunity will not last for a long time," Esbaitah said in comments published by Emirates Business.
He told the paper he expected to start buying properties from September.
This investment will be different from the company's planned $100m distressed fund targeting Dubai, he added
Esbaitah said he expected the mid-size portfolio to generate a return of eight to nine percent.
The Al Mazaya CEO refuted reports that the company was planning to exit any developments in Dubai, but said it was open to the idea of swapping of assets.
The developer, which is also listed on the Dubai Financial Market, said it has put on hold plans to build new projects this year.
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Posted by KDeE, uae on 25 August 2009 at 09:52 UAE time
Welldone Andy, SCC and John. I’m sure Mr. Buy would have bought a few villas on the Palm while we ignorant souls waste our time writing these comments. By the way, a little search on Zawya showed up the following:
Al Mazaya owns the following companies, which are based in Dubai:
Al Mazaya Real Estate
Al Dana Real Estate
Al Rayhan Rea Estate
Advantage General Trading Company
They also hold majority stake in First Dubai Real Estate Development Company apart from Al Mazaya Investments Ltd, Al Mazaya Real Estate Fund, Al Madar Real Estate Fund, Mazaya Investment Portfolio. All the above companies have interests in UAE (read Dubai). The holding company is listed on DFM.
Notably, according to AB, their share value has gone down by 71.80% in the past one year.
They are neck deep into the property sector; and I am not surprised at all that they are trying to shore up the value of their shares by planting news stories like the one above. One more surprising fact is that the trade volume in their shares suddenly went up on 23rd August and someone has bought thousands of shares, just before the above press release.
Posted by buy on 24 August 2009 at 20:14 UAE time
Only an idiot would buy now. Yes that was said when the Sensex was 7500 in march, bank shares were worthless in March. Those idiots doubled and tripled their money in under 6 months. Buy now and buy everything you can afford to. Supply is dead nothing will be built here again buy now.
Posted by John on 24 August 2009 at 17:10 UAE time
In my country they call this "tax on stupidity". Read, believe, act, pay "tax" ;-)
Posted by SCC on 24 August 2009 at 12:46 UAE time
It's just what every investor does isn't it; announce buying interest prior to the event? What nonsense!
It's only news when they have secured deals, invested funds and voted with their wallet, not idle speculation and pr massaging beforehand. It is a source of wonder to me how many of these non stories are published -swallowed presumably by the few naïve souls who believe our rulers' admnishments that recovery is imminent
Posted by Andy on 24 August 2009 at 09:38 UAE time
This sounds like a ploy to raise the value of the property prices in these area's, most likely so they can get a better price for the properties that they already own and thereby managing to deflect a fire sale.
Why would anyone buy property in areas such as the Palm when the prices are set to fall even further before the end of the year.