News Column

Dubai Investments, UP to develop plots for Dubai Expo

January 19, 2014

Khaled bin Kalban , the Dubai Investments chief executive, says the company will be tying up with Union Properties to develop pockets of land around Dubai's Expo site., according to the National. Other pieces of land that the investment company owns bordering the Expo site will be developed under the DI banner. "We will be an announcing some major projects in two to three months with regard to our sites around the Expo site," said Mr bin Kalban yesterday. "Some we will tie up with Union Properties and others we will develop on our own as Dubai Investments ." DI invests in joint ventures and local companies with about 40 subsidiaries. It has interests in property developers and building materials along with other businesses. The company reported a profit of Dh800 million for 2013 and looks set to a launch a US$300m sukuk this year to finance expansion and repay debt. The sukuk under the name of Dubai Investments Park was delayed last year because of unfavourable conditions. Regarding a weekend media report, Mr bin Kalban , who is also the chairman of Union Properties, explained that DI tried to buy the 15 per cent stake of Union Properties, owned by Emirates NBD, eight months ago but its largest shareowner decided to sell in the open market. "DI tried to buy the Union Properties stock eight months ago from Emirates NBD but they decided to sell in the market. We don't think the bank is selling they are still the largest shareholder and I don't think they are willing to sell." DI's move into property development will be the company's first foray into the sector as it looks to maximise potential gains from its land bank. The company owns large tracts of land in Abu Dhabi , Sharjah , Fujairah and Dubai, including some key plots close to the Expo 2020 site. "Over the coming months we expect to see many more land sales in the area around the Expo site as well as a wave of new projects," Craig Plumb , the head of research at Jones Lang LaSalle's Dubai office, has predicted. Property close to the Expo site has been in demand since the awarding of the 2020 Expo in November. Emaar has signed a deal with Dubai World Central to build a 13.63 square kilometre golf course and villa complex on the massive site in the southern part of Jebel Ali. Emaar said that its scheme would also include several hotels and a mall. On November 19 , Dubai Properties Group had reported a "marked increase" in demand from other developers to buy plots of land at its 278-square kilometre Dubailand district. The Arjan, Marjan and Liwan areas of Dubailand are just a few minutes' drive from the planned Expo venue. Yesterday the developer Schon Properties , which since 2003 has been developing more than 4,000 apartments at its Dubai Lagoon project in Dubai Investments Park , adjoining the Expo site, said that it was on target to hand over the first phase of development in the 40-acre scheme this summer six years later than originally planned. DI is a public company, listed on Dubai Financial Market since January, 1995. Its owners are Investment Corp of Dubai with 11.54 per cent, Al Fardan Real Estate Group with 6.05 per cent and Mohamed Al Ketbi with 5.09 per cent.; All Rights Reserved - Mubasher Info

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Source: Mubasher (Saudi Arabic)

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