Cayan Group is planning to spend almost $1 billion on three property projects in Dubai and Saudi Arabia, according to the chairman of the Saudi real estate developer.
The privately-owned company will start selling properties in a planned twin-tower development in Dubai and will work on two projects in the Saudi Arabian capital Riyadh that include residences and offices, Chairman Ahmed Alhatti said in an interview from Dubai on Sunday.
“We are believers in Dubai and the Saudi markets,” Alhatti said by phone. “This is the best time to invest as 2015 will be a time of growth and 2018 will be the peak of the market. Prices are now very competitive and the market is mature.”
Cayan, which built the landmark 307-meter (1,007 feet) twisted skyscraper in Dubai Marina, already has projects in Saudi Arabia, Dubai and Lebanon. It’s considering “several development opportunities” for homes and hotels in London and Paris, the chairman said, without being more specific.
In Dubai, Cayan will build a 38-story hotel-apartment complex and a 42-story residential tower costing 1 billion dirhams ($273 million), Alhatti said. The buildings on Dubai’s Umm Suqeim road are set for completion by mid-2018.
Cayan Group, established in 2004, will be the majority shareholder in a fund to be managed by Shuaa Capital PSC that will provide financing for the Dubai project. Funding will be split equally between equity, property pre-sales and bank loans, the chairman said.
In its home market, Cayan will spend about 2.5 billion riyals ($666 million) on two projects in Riyadh. It will sell serviced-land plots to “select” buyers who can then build the homes themselves, Alhatti said. The company is also planning to build about 250 homes on part of the 1 million square-meter plot near the Diplomatic Quarter in the next three years, he said.
Cayan will construct a 15-story office tower on King Fahad Road to serve as its new headquarters, Alhatti said.