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14 April 2024

Deyaar to raise Dh1bn

By Staff Writer



Deyaar Development is planning to raise about Dh1 billion before the second half of this year to fund future projects, according to a senior official.

The developer, listed on the Dubai Financial Market, will within one year use up all the funds it raised through its initial public offering (IPO), which was more than Dh3bn.

Chief Executive Zach Shahin (picture above) said the company has several options to raise funds. “Money can be raised through a bond issue, bridge finance or a syndicated loan. We will have to take a decision on this before the second half starts,” he said. Sources said the Escrow Account Law will see small players quitting the scene and giving more opportunities for developers such as Deyaar.

The new requirement that funds collected from the buyers have to be deposited into an escrow account will see small players struggling to succeed.

However, big players with the backing of established groups will have access to different sources of funds. There have been reports that the IPO funds collected by Deyaar would be used to build its land bank, which has about 100 properties in various stages in the UAE alone, and also to settle a previous facility with former parent company Dubai Islamic Bank.

Deyaar also has ongoing projects on Reem Island in Abu Dhabi. The company is said to be evaluating one more project in Abu Dhabi. The other countries Deyaar is looking at include Saudi Arabia, Qatar, Kazakhstan and India.