Aldar pondering share buyback

Dubai: Aldar Properties is considering a share buy-back to cash in on current prices, a top official said.

"It's something we have been considering for some time as the current share price is quite lucrative," Ronald Stephen Barrott, Aldar chief executive, told Gulf News on Wednesday.

"Although resources [at our disposal] from diverse sources of funding, including project sales, are for undertaking projects, the share prices are lucrative enough to buy."

Borrowing costs in the UAE have increased in recent months as international institutional investors have reportedly siphoned out billions of dollars from local markets to fix their problems elsewhere, putting pressure on the local project finance market.

The current tight situation could force some real estate companies to merge, Barrott said. "Yes, the costs of funds have gone up and this might have some effect on the development market and could force some real estate companies to merge," he said.

"Although the current global financial situation and the credit position in the UAE will impact the market, we will not delay or reschedule any of our projects. These will go on as planned," he said as Aldar's share price declined 9.7 per cent to Dh5.48 on Wednesday.