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23 April 2024

Two firms to inject Dh2bn in property sector

Two firms to inject Dh2bn in property sector. (EB FILE)

By Parag Deulgaonkar

Two companies are set to channel more than Dh2 billion into the UAE's property market in the first half of 2010, Emirates Business can reveal.

While Dubai International Holding Company, a private investment firm owned by Sheikh Maktoum Hasher Maktoum Al Maktoum, plans to invest Dh1bn in Dubai's realty market by the first half of 2010, Kenmore Property Group, a UK-based real estate investor, along with a Qatari investor will launch a $300 million (Dh1.1bn) GCC property fund in the first quarter of 2010, which will invest in the UAE market, a person close to deal said.

"If you look at all the asset classes internationally, stock markets or anything else, right now the most depressed prices are for properties. We will be investing Dh1bn in different projects across Dubai," Sheikh Maktoum told this newspaper. "We are looking for whole projects… not bits and pieces. Given the experience we had in the past 18 months, we can assess projects quite well."

"The fund will invest in the UAE, Saudi Arabia and Qatar real estate market," he said.

According to Sheikh Maktoum, his company will not be holding on to the acquired assets in long term. He expects a return on investment of up to 40 per cent.

"If you look around, there might be projects that may be in distress, but the problem is to access their viability," he said.

"We believe one can make up to 40 per cent return if one plays their cards right. We can turnaround the assets very quickly as we have the know-how on the property market," Sheikh Maktoum added.


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