Deyaar Development PJSC (DEYAAR), the property company controlled by Dubai Islamic Bank PJSC (DIB), sold an office building in the Business Bay district for 141 million dirhams ($38 million) and plans to build two towers in the area, Chief Executive Officer Saeed Al Qatami said in an interview.
The buildings will have 700,000 square feet (65,000 square meters) of space, including homes and shops, the CEO said today at the Cityscape Global property conference in Dubai. Sales will probably start this year, he said.
Like most of Dubai’s developers, Deyaar’s sales and profit tumbled when the emirate’s property market imploded in the financial crisis. The company posted annual profits in the last two years after recording a net loss of 2.87 billion dirhams for 2010, according to data compiled by Bloomberg.
“Now we have finished all restructuring and we are working on new projects,” after “tough” years in 2010 and 2011, Al Qatami said.
The company has been selling its portfolio of about 1 million square feet of homes and offices, most of it in Business Bay, he said. Funds from the sales, along with advance sales and bank loans will pay for new projects.
The company is working with Dubai Islamic Bank on a bridge loan to start the Business Bay development, he said.
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