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Sun 14 Jul 2019 09:06 AM

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Sobha Group sets billion dollar target ahead of possible IPO

Dubai-based developer Sobha Group eyes second mega project in the emirate

Sobha Group sets billion dollar target ahead of possible IPO
Sobha's recently launched Creek Vistas Tower B will consist of 390 units comprising one- and two-bedroom apartments ranging from 493 to 899 sq ft.

Sobha Group should be a billion dollar company in the next two years, according to its president Jyotsna Hegde.

The UAE-based real estate developer announced a record AED500 million ($136 million) sales bookings in the first quarter of 2019 – 33 percent above target.

Hegde told Arabian Business: “We have a top line target which I think we should achieve in the next two years. We are making our targets, we’re on track this year. I would think we would be a billion dollar company in two years’ time.”

Plans to take the company public will be held back until these targets are met, with a possible date of 2022 or 2023, the developer said.

Jyotsna Hegde, Sobha Group president.

In February this year, the developer announced the handover of phase one of its Hartland Greens apartments, located in its $4bn Sobha Hartland development in Mohammed Bin Rashid Al Maktoum City (MBR).

Sobha Hartland, which is the company’s first foray into the Dubai real estate market, is an 8 million square feet waterfront community perched along the Dubai Canal and comprising luxurious apartments, premium villas as well as high-end townhouses.

The site will eventually include more than 400 villas and 5,000 apartments, as well as a 150,000m sq community centre, three hotels, a spa, two mixed-use towers, two schools, three mosques and a clubhouse.

New development

Hegde revealed plans are afoot to add a second development to the company’s portfolio.

She said: “We’re looking at a new location in Dubai and land sales are in the process of closing. There are some very exciting things coming up.

“We have in Hartland currently another four years’ worth of stock, so I have enough for another four years’ worth of sales, keeping in mind our targets. It’s time for us to start looking at other options. We started some time ago and we should be able to close a few things shortly.

“When we’re done, we should have enough clarity for another ten years.”

Through its Hartland development, Sobha Group is synonymous with the premium market. But Hegde admitted the next development will be a “mix”.

She said: “Our strength has always been in the mid to upper end, so even if we look to affordable housing, it will be of the highest quality standards. We will not compromise on any of our quality standards – affordable does not have to mean shoddy.”

Established by PNC Menon in 1976, Sobha currently has developments and investments in the UAE, Oman, Bahrain, Brunei and India.

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