Abyaar Real Estate Development, a Kuwait-listed developer, has indefinitely delayed plans for a dual listing on the Dubai Financial Market (DFM)Dubai Financial Market (DFM) due to adverse global conditions, a top company executive said yesterday.
"We initially had planned an August listing on the DFMDFM, which was subsequently postponed to October. We are not sure of when we will go ahead with the listing but we will think about it when market conditions improve," AbyaarAbyaar Vice-Chairman and Managing Director Marzooq Al Rashdan told Emirates Business in a telephonic interview.
According to Al Rashdan, the company is awaiting necessary approval from its general assembly on raising its paid-up capital by 100 per cent. It expects to launch subscriptions by the end of December or early January.
"After the 100 per cent increase, our paid up capital will reach KD106 million [Dh1.44 billion] from KD53m. We had initially planned a capital increase in January 2009, but we announced it earlier since we have put our $200m sukuk plan on hold," he said.
Only current shareholders are open to participate at a rate of 100 fils, with an issue premium of 25 fils per share. The new capital will be used to fund the company's projects in Saudi Arabia and Egypt. In Saudi Arabia, AbyaarAbyaar is planning to construct an 85-storey tower valued at SR800m (Dh782m) in Jeddah while in Egypt, it has acquired a large plot within the Port Ghaleb project.
The company is in talks with large entities in Dubai, Bahrain and Saudi Arabia for selling a stake if any of the current shareholders fail to subscribe for the new capital.
Kuwait-based Al Kharafi GroupAl Kharafi Group has already acquired a five per cent stake in the property developer.
"We don't have plans to launch our own real estate funds, but we may enter the fund market through partnerships with investment house," Al Rashdan added.
Last month, he told this newspaper that the company is postponing its plans to launch a sukuk programme.
"We postponed the sukuk after looking at the current market conditions. It has not been cancelled but put on hold. We have the green light from our shareholders and we will enter the market when conditions are conducive," said Al Rashdan.
The company's nine-month net profits jumped 95 per cent to KD24.32m from KD12.49m reported during the same period last year. Earnings per share rose to 50.14 fils per share compared to 25.87 fils per share.
The company's total assets at book value amounted to KD230m, while assets at "conservative" market value amounted to KD480m. Loans and liabilities make up 30 per cent of its total assets.
In Dubai, the company's projects are valued at Dh25bn, 85 per cent of which are under construction. The developer has acquired plots of land on the Dubai Waterfront but has not yet decided on the theme or concept of the projects.
"We will be launching a tower in the Dubai Media City next year. However, we will not be getting into major developments in the emirate since our hands are full till 2014-15," said Al Rashdan.
AbyaarAbyaar has already launched three towers in Dubai Marina and three mixed-use projects in Dubai.
When asked if the property market in the Gulf Co-operation Council (GCC) countries looks saturated, Al Rashdan said the region represents the safest and most stable market despite the current financial crisis.
"We have benefited significantly from the issue of Dubai's new mortgage law, as the company owns a large plot of land in the emirate that has been acquired on a build, operate and transfer basis for a period of 30 years. The law allows easier mortgage of land, which means getting required funding more easily in order to pursue development and pay off our long-term liabilities," he added.
