The luxury property developer of Dubai, Damac Properties’ goal for a higher profile in overseas markets has received backing with the entity increasing its share in its overseas subsidiary to 45 percent from 20 percent.
Damac is constructing a super-luxury high-rise in London and had discoursed the possibility of engaging in more projects in the UK. A board meeting held last day gave the clearance for Damac Properties to raise its share in its international unit.
The stock of Damac which fell 1.62 percent has been quite active in recent weeks, with listed real estate companies seen as bellwethers for the wider economy. Last year, Damac posted a loss of $272 million, with the numbers showing the full impact of the pandemic on demand.
This is the second big consolidation action by Dubai based master-developers in recent days. Last week, Emaar Properties declared that it was bringing Emaar Malls, also listed on DFM fully into its fold. The goal was to help the parent company have access to higher recurring income, among other factors.
Meanwhile, Damac did not reveal its plans on how it expects to raise the stake in the international subsidiary. Market analysts say it will be bought from other shareholders rather than through issuing new shares.
The Damac officials have also revealed the plans about getting into overseas markets, which industry onlookers assume could be a priority if the developer continues to hold back on new off-plan launches in its home market Dubai.
The Damac Chairman, Hussain Sajwani, had been one of the first persons in the sector to say that the off-plan market required time and space to cool down. But it’s only in the last year that other “systemically important” developers also cut down their off-plan launches.
Damac 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 locations.