ETA Star Property puts on hold plan to raise funding

ETA Star Property Developers, part of ETA–Ascon Group, has put on hold its plans to raise funding through sukuk and fund issue, citing unfavourable market conditions, a top company executive said.

"We do not believe the time is right for raising funds from the financial markets now given the present financial conditions.

"However, we will consider raising money from financial markets at a later date," ETA Star Executive Director Abid Junaid told Emirates Business ahead of the official inauguration of Liberty House located in Dubai International Financial Centre.

He said last year that the company planned to raise $400 million through sukuk and fund issue.

The 42-storey tower consists of 140 office space and 220 apartments including studios, one-bedroom, two-bedroom, one-bedroom duplex and two-bedroom duplex. There are 10 floors of offices and 20 floors of residential, with six levels of car parking.

"Besides, our own requirements have been curtailed as we have deferred some of our projects. However, we are committed to deliver all our other projects on which work has commenced." One of the projects put on hold is the Starhill Towers & Gallery, a Dh1.5bn twin tower waterfront development in Business Bay. Covering an expanse of 1.6 million square feet, the Starhill Towers was to consist of a 31-storeyed office tower and a 29-storey five-star hotel.

In June 2009, an ETA Star official told this newspaper that the developer will not be lowering sale prices for unsold units in Liberty House. "The handing over of the keys to the owners will be completed in a month's time. We have already handed over keys to 60 per cent of the owners," he had said.

Although the developer has in excess of five million undeveloped gross floor area, Junaid said they were not planning to launch any new projects in Dubai.

"We have land banks across Dubai, but we will launch projects only when the market is ready. We have plots in Abu Dhabi as well but they will be developed at an appropriate time."

ETA Star is focusing on delivering properties in Dubai and launching and developing properties in India.

"More than 1,000 units will be delivered in Dubai and India." The developer also ruled out plans to acquire any distressed property of any kind in the UAE.

 

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