Dubai Investments seeks to ride property boom with unit’s IPO
The city’s property market has been surging, driven by foreign buyers drawn by liberalised visa rules and growing end-user demand
DUBAI Investments is in talks with banks to list a unit that operates one of the emirate’s largest mixed-use real estate developments, as it seeks to capitalise on surging property demand.
CEO Khalid Bin Kalban said in an interview that the firm is likely to sell up to a 25 per cent stake in Dubai Investments Park Development by February. “We will use the proceeds to expand, and we have plans for other parks.”
Dubai Investments Park could be valued in the range of about eight billion dirhams (S$2.8 billion) to 10 billion dirhams, according to people familiar with the matter, who asked not to be identified discussing private information. Bin Kalban declined to comment on the valuation.
The 2,300-hectare development, which includes industrial, commercial and residential zones, has an occupancy rate above 90 per cent, Bin Kalban said. “We have lease agreements with dozens of firms, with potential for rental growth.”
The city’s property market has been surging, driven by foreign buyers drawn by liberalised visa rules and growing end-user demand. Home prices are up more than 70 per cent over the past four years, fuelling a broader construction boom.
Dubai Investments, which holds stakes in about 30 companies across manufacturing, real estate and financial services, has also benefited. Its shares are up 32 per cent this year, outpacing the Dubai benchmark index’s 15 per cent gain.
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The Investment Corporation of Dubai, an arm of the emirate’s government, is its largest shareholder.
The real estate boom has also sparked a wave of listings. In May, an investment vehicle controlled by Dubai’s ruler raised US$584 million through the initial public offering (IPO) of a residential real estate investment trust. It also plans to list its retail property portfolio.
Alec Engineering & Contracting and Arabian Construction are also preparing IPOs in the United Arab Emirates, as is online property platform Dubizzle, Bloomberg News has reported.
Bin Kalban said Dubai Investments is also considering strategic investors and private placements. Other subsidiaries, including Emirates Glass and district cooling provider Emicool, may be listed in the coming years once they expand further.
Established in 1997, Dubai Investments Park is home to more than 160,000 residents and includes warehouses, hotels, retail outlets, schools and medical centres. It is located near Al Maktoum International Airport, which is undergoing a US$35 billion expansion.
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