Deyaar plans buyouts

Nasser bin Hassan Al Shaikh (SUPPLIED)

Deyaar Development is assessing options of buying stakes in construction companies and plans to move away from launching single towers in Dubai to building mid-size communities, which will house at least 30,000 people, in the second half of the year, a top company official said.

"We are assessing options for buying stakes in construction companies. Though it is still very early to say anything, the move is intended to safeguard our interests. Moreover, we will construct mid-size communities that launch single towers in Dubai," Chairman Nasser bin Hassan Al Shaikh told Emirates Business.

Property prices have quadrupled over the last five years in Dubai, Al Mal Capital said in a real-estate report. Although the company's former Chief Executive Zack Shahin is being investigated for financial wrongdoing, Al Shaikh believes that the company will beat full-year profit forecast of analysts.

"The wrongdoings will not affect our profitability as the transactions have been recorded in our past profits. So they will not have any impact now. We have become more aggressive on project launches. Besides, escalation in property prices is working in our favour.

"We will certainly surpass analyst expectations and it is visible through our first quarter performance. Profits will grow quarter on quarter," he added.

Deyaar had reported a net income of Dh202 million and revenue of Dh460 million for the first quarter. It was spun off from Dubai Islamic Bank in May 2007.

 

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