Mortgage firm Amlak Finance will build a new residential and commercial district in Dubai's Al-Warqa area after purchasing six million square feet of land from the government, the lender said on Saturday.
The company said the acquisition would take its real estate investments to more than 4.5 billion dirhams ($1.23 billion), after it paid 2.6 billion dirhams in October for part of the Meydan business park.
It did not say how much it had paid for the land.
"The land is intended for a multi-use development totaling a gross floor area of 8.5 million square feet," Amlak said in a statement.
The scheme, Warqa Heights, will house about 40,000 residents.
Earlier this month, Amlak announced its net profit grew 758% to 128.4 million dirhams ($35 million) in the fourth quarter of 2007, and 131% to 301 million dirhams for the full year.
Amlak has operations in Egypt, Jordan Saudi Arabia and Qatar, and said last year it was considering moving into Bahrain.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.