Real Estate News
Saudis to spend $640bn on 5m new homes
According to a new strategic plan unveiled by Jeddah Municipality, the kingdom's property sector will need around $640bn in investments over the next 20 years to build five million new low-cost housing units, Khaleej Times has reported. To cope with the increasing number of expatriates and an influx of nationals from rural areas, the plan estimates Jeddah alone to need almost a million housing units over the 20-year period. The total investment in the kingdom's real estate sector is expected to exceed $400bn in 2010. More »
Abu Dhabi Finance cuts mortgage rates
Ali Eid al Mehairi, chairman of Abu Dhabi Finance, a mortgage provider part-owned by the government, has said the firm has received financial support from the Department of Finance aimed at reducing its rates to the lowest in the country, The National has reported. The unspecified amount, which was obtained at 'commercial terms', will enable ADF to lower the cost of borrowing for home buyers to as low as 5.75%, compared to the lowest rate in the market today of 6.5%. ADF is considering future expansions into other types of finance, such as lending to property developers, he said. More »
Egypt's Palm Hills Q4 profit rises 63%
Egypt-based Palm Hills Developments has reported a 63% rise in fourth-quarter profit to EGP185.1m ($33.8m) from EGP113.5m in the same period a year earlier, Bloomberg has reported. Revenue rose to EGP470.8m from EGP139.5m in the last quarter of 2008, while full-year sales, however, fell 7% to EGP1.14bn 'despite a very challenging first half', the company said. More »
DSI wins two contracts in Kuwait
Drake & Scull International for Electrical Contracting - Kuwait has said it has won two contracts worth over Dhs90m within the education sector in Kuwait City, Kuwait. The contract wins are the first for DSK since being acquired by Drake & Scull International (DSI) in December last year. More »
Saudi developer to raise $272m in IPO
The Saudi Capital Market Authority has said that property developer Knowledge Economic City plans to raise SR1.02bn ($272m) in an initial public offering in May, Reuters has reported. The developer will offer 102 million shares at SR10 riyals each over the May 24-30 period, CMA said in a statement. More »
Due diligence extended in Arabtec, Aabar merger
Dubai-based Arabtec, the UAE's largest contractor, has extended the due diligence date for its $1.7bn merger with Aabar Investments to April 16, in a move that will encourage investors that the deal will progress, the company said. 'Because of the enormity of the task at hand and the limited time frame, both parties agreed to amend the subscription agreement and the term sheet to extend the due diligence date to midnight April 16 2010,' the company said in a statement on the bourse website. Under the agreement, Abu Dhabi's Aabar in January had agreed to acquire a 70% stake in Arabtec in a deal valued at about $1.7bn, according to Reuters. More »
Two new property companies established in Saudi
Two new real estate companies have been set up in Saudi Arabia after obtaining necessary approval from the kingdom's commerce and industry ministry. The first company is the Jeddah-based United Bunyan for Real Estate, which has registered a capital of SR475m, while the second is the Riyadh-based Wissam Hussein Al-Jafri Real Estate Co, with a capital of SR150m. More »
Egypt's Talaat Moustafa's Q4 profit up 59%
Egypt's biggest developer by market value, Talaat Moustafa Group, has posted better-than-expected fourth-quarter results after new sales outpaced cancellations in 2009, Reuters has reported. The developer's Q4 net profit rose by 59% to EGP167m ($30.4m) from EGP105m, while revenue rose to EGP467m from EGP382m. More »
First developer breaks ground on The World
Dubai-based Kleindienst Group has officially broken ground on Germany Island, becoming the first developer to start construction on The World islands in Dubai. 'While we are the first developer to begin construction, we are aware of several more that are not far behind us. The World project is very real, it is taking shape as we speak and I firmly believe that when complete it will become the most expensive property in the emirate of Dubai,' chief executive Josef Kleindienst said. Since The Heart of Europe launched in December 2009, Kleindienst Group has sold 11 villas on Germany Island. More »
Galfar Engineering wins two contracts in Oman
Oman-based Galfar Engineering & Contracting has said it has won two contracts with a combined value of OR50.5m ($131m), Bloomberg has reported. The first is a OR40.5m contract from the ministry of transport and communications for works at the Ras Al Hadd Airport, while the second is a OR10m from the ministry of health to build an accident and emergency department at Khoula Hospital. More »