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Dubai-based real estate developer DAMAC Properties has planned to raise US$500mn through an initial public offering on the London Stock Exchange before the end of this year
The developer’s chief financial officer Adil Taqi said DAMAC Properties would issue global depository shares (GDR) in London, with each GDR worth three ordinary shares, Reuters reported. The new company will be called Damac Real Estate Development Limited.
Citigroup and Deutsche Bank are reportedly the joint bookrunners for DAMAC Properties' offering in London, with the investment banking arm of Saudi Arabia's Samba Financial Group and VTB Capital acting as co-lead managers.
In Dubai, DAMAC Properties is building golf courses with American real-estate entrepreneur Donald Trump, as well as a Hollywood-themed residential and retail complex.
In a regulatory filing, DAMAC Properties reported that it has total assets of US$2.3bn, with about 85 per cent of its current portfolio in Dubai. The developer’s net profit for the first half of 2013 rose 40 per cent to US$332mn compared to results released for the same period last year.
DAMAC Properties founder and chairman, Hussain Sajwani, said the Dubai property market is poised for sustainable growth in the near term, supported by a strong rental market, the news agency reported.
“We think the Dubai property market is at the beginning of a growth cycle. Demand is now exceeding supply, which is why rents are going up,” said Sajwani.