Al Mazaya to raise Dh1.1bn - Emirates24|7

Al Mazaya to raise Dh1.1bn



Dubai-listed Al Mazaya Holding plans to raise Dh1.1 billion ($300 million) via two funds over the next six months, a top company executive said yesterday.


“We will launch a private equity fund by the end of March and a Shariah-compliant one by mid-May,” Al Mazaya’s Managing Director and Chief Executive Khalid Said Esbaitah told Emirates Business. The two closed-ended five-year funds will have an initial seed capital of $100m each, and will jointly raise equity of $300m. The corpus will be invested in the Dubai real estate market.


The profit rate for its Shariah fund will be decided ahead of the launch date, while the company expects to deliver a minimum return of 20 per cent on the fund.


Al Mazaya has developed properties in GCC countries with an investment of Dh27bn, of which more than Dh18bn has been invested in Dubai. Rashid Al Nafisi, Chairman, Al Mazaya Holding (pictured above), said earlier the company had acquired a 1,500-metre plot of land on Sheikh Zayed Road, which has been designated for office space, plus 10 plots in Jebel Ali Downtown.


In Bahrain, Al Mazaya has begun developing its new BD38m (Dh373m) project, the 7 Zones, situated in Bahrain Financial Harbour (BFH). According to local media reports, Bahrain could pass a law preventing foreigners from owning properties in the Gulf state in order to curb pressures on real estate prices.


The company has joined hands with Construction Company to share in a real estate investment portfolio with a capital of OMR3.1m (Dh29.7m). The partners have commenced work on an integrated residential project in Sohar, which includes 73 villas, while projects in Muscat and Salalah are being discussed.


The company has launched a real estate index, which will monitor property movement across the GCC. The index measures the progress of all the real estate indices in the GCC, including the residential lands index, the trading on flats and villas index, the commercial and investment lands index, and the prefab offices index.

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