Dubai developer Deyaar would consider merging with another company but is not currently in any consolidation talks, its chief executive said on Wednesday, as the emirate faces a real estate downturn.
Markus Giebel said he expected the real estate developer to report a profit in each quarter of this year.
Deyaar, which said in February it would put at least a quarter of projects on hold as it faces the global financial crisis, was not currently in any merger talks, Giebel also told reporters.
“Absolutely, if it makes sense to shareholders. But it must be good for the UAE and Dubai,” Giebel said, when asked if the developer would be open to a merger.
Residential property prices in Dubai have fallen by at least a quarter since peaking late last year, Morgan Stanley said last month.
Deyaar and Dubai’s 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.
“The next four quarters will all be profit,” Giebel said, adding the firm had “enough cash” to meet its commitments, although the company was open to talking to the government about funding if cash became available.
Last month, Dubai’s government sold $10bn worth of bonds to the UAE central bank to create a fund for struggling state-linked firms.
Deyaar is owned mainly by Dubai Islamic Bank and the public.
“If the government opens up funds to companies like Deyaar then we would like to talk,” Giebel said. (Reuters)
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