Gulf Construction Online

Real Estate

News in brief

01 April 2021

Promoseven set to hand over affordable housing units in Bahrain

Promoseven Holdings, a leading real estate developer in Bahrain, has announced that it will soon start handing over the units within the Diyar Alkhair, a residential project targeted at low- or middle-income citizens.

Diyar Alkhair, which boasts two 14-storey towers and 120 apartments, will form an integrated city in Sanabis in the heart of the commercial Bahrain.

Located 3 km from the capital, Manama, the project is at the centre-point of a highway connecting southern and northern Bahrain at Sanabis.

Unveiling the future plans, Chairman Akram Miknas says more than 80 per cent of the project stands finished and work is in full swing for its timely completion.

Promoseven Holdings has also set up a mock-up apartment for prospective buyers to get a clear idea of the finished product.

“Our aim, through the Diyar Alkhair project, is to contribute to the national efforts for providing economical housing for Bahrainis. We utilised the large land area on which the development is built to create affordable apartments for low- or middle-income Bahrainis,” remarks Maknas.

“The complex is directed primarily at the residents of neighbouring communities in the villages of Budaiya, Jidhafs, Al-Burhama among others, who wish to own an apartment at an affordable price without compromising the main requirements of the apartment and the distinct service facilities,” he adds.

Damac wins approval to boost stake in international unit

Dubai-based developer Damac Properties said it has won approval from the company’s board of directors to boost its stake in the group’s key international subsidiary, Damac International.

The Emirati company operates internationally providing residential, commercial and leisure properties and has a presence in Saudi Arabia, Qatar, Jordan, Lebanon, Oman and the UK. Damac was the first UAE developer to list on the London Stock Exchange.

Following the go-ahead from the company’s board, Damac will increase its stake in Damac International to 45 per cent from the present 20 per cent, said the company in its filing to Dubai Financial Market.

Damac International is the owner of Nine Elms Property, the company behind Damac Tower Nine Elms, a 50-storey building located in one of London’s most prestigious residential addresses. It will feature studios, one-, two- and three-bedroom apartments, complemented by premium finishings, and feature special ‘winter gardens’ that offer panoramic views of the city.

DXB Entertainments gets approval for $1.2bn Meraas debt swap

DXB Entertainments, a leading Dubai-based leisure and entertainment company and operator of emirate’s major theme parks, said it has won approval from shareholders to transfer AED4.3 billion ($1.17 billion) debt to UAE developer Meraas Leisure and Entertainment in exchange for 53 billion ordinary shares.

The go-ahead for the Meraas debt conversion came from the shareholders at the company’s general assembly last month.

Following the go-ahead, DXB Entertainments will convert its debts with Emirates NBD into ordinary shares valued at AED1 each in the company’s share capital at a conversion rate of AED0.08 per share, said the company in its filing to Dubai Financial Market (DFM). Also at the meeting, the shareholders approved the proposal to increase the issued share capital of the company from AED53.4 billion to AED62.8 billion and backed the listing of the shares on the DFM.

Emaar Properties to take over malls business in $6.5bn deal

Leading developer Emaar Properties has announced plans to take over its malls unit amid the ongoing crisis due to the Covid-19 pandemic which has resulted in a property downturn in Dubai.

The developer, which already owns 85 per cent of Emaar Malls, proposed to pay 0.51 share for every Emaar Malls share, valuing the business at AED24 billion ($6.5 billion). This represents a premium of 7.1 per cent to the closing price of Emaar Malls on March 1, 2021.

A property glut and faltering demand in Dubai have driven prices down by more than a third since the market peaked some seven years ago. The decline has been made worse by the coronavirus pandemic, and Emaar last year temporarily halted new projects, reported Bloomberg.

The board of directors of Dubai’s Emaar Properties and Emaar Malls have voted to recommend an all-share merger to their respective shareholders, the developer said in its filing to the Dubai Financial Market.

As part of the transaction, the existing business of Emaar Malls will be reconstituted in a wholly-owned subsidiary of Emaar Properties and will continue to develop and hold a portfolio of premium shopping malls and retail assets, it added. Emaar Properties will continue to be listed on the Dubai Financial Market (DFM).