Damac Properties has said it will focus on projects outside the UAE to gain market share. Damac halted new offplan launches in Dubai, and sees foreign markets for sales boost.
Dubai , Dubai
09 March 2021, 12:00 AM
31 March 2021, 12:00 AM
Damac Properties’ planning to seek a higher profile in overseas markets has got a boost, with the Dubai developer raising its stake in its overseas subsidiary to 45 per cent from 20 per cent.
Damac International is building a super-luxury high-rise in London, and had spoken about the possibility of taking on more projects in the UK.
This is the second big consolidation action by Dubai based master-developers in recent days. Emaar Properties last week announced that it was bringing in Emaar Malls - also listed on DFM - fully into its fold. The aim was to help the parent company have access to higher recurring income, among other factors.
A board meeting held on Sunday gave the clearance for Damac Properties to raise its holding, which was widely expected by the markets. The stock, which fell 1.62 per cent to Dh1.21 Sunday, has been in quite volatile in recent weeks, with listed real estate companies seen as bellwethers for the wider economy.
The increase to 45 per cent “falls under the company business nature, and the value of the transaction is less than 5 per cent of the issued capital”.
Damac did not give any further clarification on how it intends to raise the stake in the international subsidiary. In all likelihood, it will be bought from other shareholders rather than through issuing new shares, market analysts say.