Damac Properties buys AED1.26 billion land near Dubai Canal
Developer DAMAC Properties has bought land in Dubai for AED1.26 billion, it said in a statement on Thursday (February 18).
The plots are located near the new Dubai Canal project and spread across the eastern and western sides of Sheikh Zayed Road and will add nearly 4 million square feet to the company’s land bank, the company said.
The new acquisition is “in line with the company’s long term strategy of maintaining a five years land bank and replenishing it with land in prime Dubai locations to ensure a sustainable pipeline of future developments,” the statement added.
The land was purchased through the company’s subsidiary, DAMAC Properties Development and would be paid for through a deferred payment over the next four years until March 2020.
The developer reported a 12 per cent drop in fourth-quarter net profit last week.
It made a net profit of AED844 million for the three months leading up to December 31, compared with a profit of AED959.3m during the same period a year earlier.
However, its full-year net profit was AED4.51bn, up 30 per cent from AED3.48bn in 2014.
“The Dubai real estate market is at a consolidation point in the cycle and the rapid growth witnessed in 2012-2014 is now behind us,” said Hussain Sajwani, Chairman of DAMAC after announcing the results on February 11.
He stressed that the current environment is very different from that of 2008 as stakeholders, such as government, developers, providers of capital and investors, have learnt their lessons from the property crisis then.
He still believes that Dubai’s market will create opportunities for well-capitalised and experienced companies.
The upcoming AED2bn Dubai Water Canal will link Business Bay with the Arabian Gulf. The 3-kilometre canal is expected to be completed by end of this year.
(1 AED equals to $0.27, at the time of publication)