Shapoorji Pallonji (SP) Group, the India-based engineering-to-realty major, which has built some of the iconic commercial and residential properties such as Taj Grandeur and Park Towers in Dubai, is reportedly looking to sell some of its luxury real estate assets in the emirate.
This is in line with the group’s move to monetise some of its assets to fund growth plans and stabilize its financial health, impacted by the economic downturn during the Covid outbreak.
The group is currently in talks with international investors for the sale of the luxury premium realty assets in Dubai and is looking to raise up to $375 million from the sales, the Economic Times reported.
Arabian Business has contacted the company for its comments on the issue.
Imperial Avenue is among the Dubai luxury real estate said to be on the sale list of the group.
Significantly, the SP Group’s move on monetising some of its properties comes at a time when the real estate sector is on an upswing in the UAE, riding on the country’s faster than expected economic recovery post-pandemic.
“The Dubai market has a strong correlation to luxury properties, and the right luxury products draw fairly consistent investor interest, including HNI (high net worth individual) interest,” Shajai Jacob, CEO-GCC, Anarock Group, a leading Indian property consultancy in the Middle East, told Arabian Business.
“The golden visa program and the Dubai Expo have once again put this vibrant market on centre stage as a pre-eminent luxury destination,” Jacob added.
However, he declined to comment on the possible valuation the SP Group realty assets in Dubai could fetch in the event of a sale.
Several analyst reports have said that Dubai real estate prices have rebounded strongly in recent months from a record low at the end of 2020.
The SP Group was the first Indian construction company to enter the Middle East about five decades ago when it bagged the global tender for the palace of Sultan Qaboos of Oman.
Subsequently, Shapoorji Pallonji International (SPINT), the international arm of the group, has bagged many leading properties in the Gulf region that included the Fairmont Bab Al Bahr hotel in Abu Dhabi, the Marriott Hotel Abu Dhabi, Damac’s Park Towers in Dubai and the Barwa City Amenities Zone in Doha.
Over the years, the SP Group has successfully built hundreds of diversified landmark structures worldwide in various segments, including residential, commercial, industrial, healthcare, hospitality, educational and stadiums.
The group, with a rich legacy of 156 years and a presence in over 50 countries, has recently sold its consumer products company Eureka Forbes, and is in the process of selling Sterling and Wilson, an EPC company that builds solar electric power projects, as part of its on-going asset monetization plans.
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