By Jason Benham
UPDATE 1: But Dubai developer eyes big increase in 2008 income - chief executive.
Dubai developer Deyaar has put all its unsold projects on hold due to the global financial turmoil but still expects to post record profits for the fourth quarter, its chief executive said on Wednesday.
Markus Giebel told reporters the company had put "many projects" on hold adding "it's wrong to deliver units which have not been promised to the customer".
Gibel did not give figures when asked about his profit forecast for 2008 and the fourth quarter, but said: "The increases are substantial ... (We have a) record breaking quarter and year".
Deyaar has an 8 percent debt to equity ratio, making it almost "debt free", Giebel said.
But he predicted that the financial crisis will dog the sector for a least six more months.
"People say it will be over in the first quarter. No way. It's not a process to be completed in the next six months."
Deyaar will deliver five residential and commercial projects in Dubai in 2009, he said, adding it has around 22 projects in the emirate, worth between 20-25 billion dirhams ($5.45-6.81 billion), under construction, Giebel said.
Deyaar is in negotiations with a Saudi firm to develop a master community in Jeddah, worth 20 billion dirhams, he said.
"We believe Saudi Arabia is a good region ... there are many opportunities (globally), distressed assets are one of them".
"Turkey is good value. We are looking at JV potentials in Turkey and many countries" in the Middle East and North Africa regions, he added.
Giebel said he expected there to be a reduction in the number of developers in Dubai in 2009 as a result of the financial turmoil, adding that consolidation was a good strategy.
Deyaar and Union Properties denied in October that they were in merger talks but were unable to say if the government was looking into ordering a tie-up.
Deyaar's net income in the third quarter rose to 311.95 million dirhams ($85 million) from 200.16 million dirhams ($54.54 million) a year-earlier and revenue surged almost five-fold to 1.01 billion dirhams. (Reuters)
No one is interested in buying any properties right now, for whom we are building if the demand is almost zero
Its unfortunate that yet another developer has thrown in the towel. The market will continue to suffer as long as the major players are not willing to commit to the continued development of the city and further the region. Where are all the bold people who a few months ago said that Dubai's economy was recession proof.
We invested in an apartment in Jebel Ali Towers . One year after they took our first installment there is no activity at all. We even hear rumors that Deeyar haven't even got hold of the land the towers are supposed to be built on. Mr. Giebel can you tell us what is going on ? Can we please have our money back ?
Can some one please explain what the comment " ..."it's wrong to deliver units which have not been promised to the customer" means ? And how about delivering units "PROMISED" to customers ?