x Abu Dhabi, UAETuesday 25 July 2017

Dubai Properties Group to use cash reserves on new developments

Dubai Properties Group says ambitious plans to develop three hotels, more than 1,500 homes, a souq and a marina will be funded from its cash reserves.

Dubai Properties Group says it will use its cash reserves to fully fund its plans to develop three hotels, more than 1,500 homes, a souq and a 60-berth marina.
The government-owned developer exhibited plans of seven new projects at the Cityscape exhibition in Dubai yesterday as it geared up for another phase of expansion.
Dubai Properties Group, which was hit hard by the global financial crisis like most developers in Dubai, announced a new 160-room, 25-storey hotel at Jumeirah Beach Residence on the second day of the three-day exhibition.
That is just the latest in a series of new projects DPG has announced in recent days. They include Business Bay Towers - two 365-metre-high buildings comprising a five-star hotel, 377 serviced apartments and 471 flats.
Dubai Properties Group also plans to develop Manazel Al Khour, a block of three and four-bedroom luxury apartments, 76 of them next to the Dubai Creek on top of 70,000 square feet of shops; a 250-room hotel and a 60-berth marina surrounding a souq by the Dubai Creek; Maraya, a shiny glass-exterior block of about 200 apartments between Downtown Dubai and Business Bay, and about 400 villas at its Mudon scheme.
The developer said it hoped to build the projects over the next four years. But it declined to comment on the value of the projects because they were at the design stage.
"DPG is different from the other developers," said Khalid Al Malik, the group chief executive of Dubai Properties Group. "We have our own landbank. We have our rental portfolio which is massive so we generate good money from these two sources.
"In addition, some of these are built to sell products, which we categorise like that, so that's how we fund them."
He added: "The difference with 2008 is that today we are not building massive infrastructure projects which sucked in a lot of money.
"These are plot developments. We have had some very successful developments recently, and if you follow a plan with good cash flow management you can succeed. We're being very careful and very cautious."
lbarnard@thenational.ae
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