Dubai Investments has announced that it is in discussions with several banks to list one of its subsidiaries, which is responsible for developing one of the largest mixed-use real estate projects in the emirate, aiming to capitalize on the growing demand for properties in Dubai.
Khalid Bin Kalban, Vice Chairman and CEO of Dubai Investments, revealed that the company intends to sell up to 25% of the shares of Dubai Investments Park Development by February. He indicated that the proceeds from this offering will be used for expansion and launching new development projects in other locations, according to Bloomberg.
Sources estimate the potential market valuation of the company to be between 8 billion to 10 billion dirhams. The project spans approximately 8.9 square miles and includes industrial, commercial, and residential areas, boasting an occupancy rate exceeding 90%, supported by leases with numerous companies, providing significant opportunities for rental income growth.
Furthermore, Bin Kalban mentioned that the company is also exploring options to attract strategic investors or carry out a private placement, noting the possibility of listing subsidiaries such as Emirates Glass and Emicool for central cooling services in the market in the coming years after their business expansions.
In April, Bin Kalban confirmed to local media that the company is working on increasing capital and pursuing new projects and acquisitions, adding that it is preparing to divest from four subsidiaries, which have been fully evaluated: two companies are ready for listing, while two others are in development and expansion to reach a targeted market value of no less than 500 million dollars (1.8 billion dirhams) to ensure a suitable market offering.
This strategy comes in the wake of a robust boom in Dubai’s real estate market, driven by heightened demand from foreign buyers and end-users. Dubai Investments, which holds stakes in around 30 companies across manufacturing, real estate, and financial services sectors, is benefiting from this trend, with the company’s shares rising 32% since the beginning of the year, outpacing the overall performance of the Dubai Financial Market index, which has increased by 15%.