Property

Damac shares rally in Dubai on London tower plans

Dubai property developer says it is considering an equity stake in a 50-storey project, in what would mark its entry into the UK market

PHOTO: Hussain Sajwani, chairman and chief executive of Damac. Credit: Damac

Damac shares on Sunday soared by more than 7% after the Dubai developer said it is considering an equity stake in a 50-storey tower project in central London.

Shares in Damac, which trade on the Dubai Financial Market, had risen by 7.14 percent to Dh2.40 at 12.30pm local time.

The firm said earlier it is considering a stake in a mixed-use tower project in central London, which would mark its first foray in the UK market.

The proposed central London project has already obtained planning permission and includes a 50-storey mixed-use tower, according to a Damac statement to the Dubai bourse. It comprises 685,000 sq ft including 450 residential units, retail and office space.

Damac said in the bourse statement that the firm itself had not entered into a land sale over the London tower, but that a deal had taken place between an unnamed land seller and another company, which was also not named, under the control of Damac chairman Hussain Sajwani.

“The initial exchange of contracts for a London land purchase has been executed between the land seller and another company under the control of the main shareholder of Damac, Mr Hussain Sajwani and completion of the transaction is expected shortly.”

But Damac itself is also considering a stake in the project, the statement said.

“The board of Damac Properties… will consider taking at cost, an equity position in the London project as a means of Damac entering the highly attractive UK market,” it said.

The Dubai developer said last month it had seen robust sales in the first quarter of this year due to healthy demand from foreign investors.

Damac also said today that it has opened two hotel-apartment projects close to the Burj Khalifa, the world’s tallest building.

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