- City Fajr Shuruq Duhr Asr Magrib Isha
- Dubai 04:01 05:26 12:19 15:41 19:06 20:31
Nakheel, the real estate arm of Dubai World, will raise more than Dh2.8 billion through two real estate investment trusts (Reit) by the end of this year, a senior company executive has said.
The company, which has $60 billion (Dh220bn) worth of development projects in its portfolio, will raise Dh800 million through a residential Reit and another Dh2bn through an infrastructure Reit, with both of them being listed in Dubai and Singapore, Nakheel’s Chief Executive Officer Chris O’Donnell told Emirates Business.
Reit is a security that sells like a stock on major exchanges and invests in real estate directly, either through properties or mortgages.
O’Donnell, however, did not rule out an initial public offering. He said: “As part of the sukuk offering, we had provided the option of an initial public offering or paying an additional preferential interest rate. So it is still very much an option for us at this stage.”
The company’s three-year $3.5bn convertible sukuk issue, listed on the Dubai International Financial Exchange, is set to mature in December next year.
Nakheel is optimistic that the Dubai real estate market will continue to grow and keeping that in mind it is pre-selling only one-third of the projects it launches.
“The Dubai real estate market will continue to grow in value and, therefore, as a developer we would like to pre-sell a third upfront, a third through the project and retain a third for post-completion. And debt allows us to do that.”
When asked if Nakheel would build the world’s tallest tower, O’Donnell said it would be an iconic one, which does not have to be the tallest tower.
“It can be an iconic tower by virtue of the style of the building or a significant architectural structure that people will marvel at. We will unveil the project this year,” the chief executive said.
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