Deyaar to channel IPO gains into 100 towers

Dubai: Deyaar, the real estate subsidiary of Dubai Islamic Bank, will channel the funds it collected from its IPO towards building 100 new towers in Dubai and expanding its global presence.

The company will list shares on the Dubai Financial Market (DFM) today following its Dh3.178 billion IPO, the largest public issue so far, which was over-subscribed 14 times.

Deyaar is one of Dubai's main private developers with more than 27 projects worth Dh10 billion, and has a total land bank estimated at around 24 million square feet.

Chief executive officer Zack Shahin said Deyaar's future international project launches will focus on the luxury commercial and residential sector in Saudi Arabia, India, Turkey and Kazakhstan.

The company will launch a $5 billion township in the suburbs of New Delhi following its joint venture with Indian property major Ansal. While in Saudi Arabia's capital Riyadh it will build a major mixed-use complex.

In Kazakhstan, Deyaar will launch a twin tower project, and in Turkey is putting the final touches on an upcoming project launch.

In Beirut, Deyaar officials are "closely monitoring" sales of the company's existing villa project, but are unlikely to invest further in the troubled country.

"I wouldn't take any more commitments at this stage," said Shahin.

Elsewhere in the Levant, Deyaar is monitoring Jordan, while in Eastern Europe the company is taking its first steps into Bulgaria and Romania.

Shahin said North Africa is another potential target for the company.

"In Algeria, we're at an early stage of due diligence. I would like to see us enter Morocco, but so many sizeable investments have been made there already and I'm unsure that we're ready to commit those amounts," he said. In its domestic market, Deyaar recently announced plans to develop a Dh2 billion residential project - its largest single development to date - in the International Media Production Zone (iMPZ). Its domestic project portfolio is split equally between commercial and residential projects.

The next two Dubai launches will a commercial and residential community consisting of eight buildings in Downtown Jebel Ali. In Business Bay the company will soon launch one commercial and one residential tower.

The company has also been buying new land plots in areas such as Al Barsha.

Shahin ruled out any plans to split the company into separate entities under a holding company.