Dubai Investments PJSC (DIC) revealed residential and commercial projects, amounting to AED10 billion (US$2.7 billion), in the next five years, to benefit from the expected economic boom.
Dubai Investments PJSC (DIC)’s chief executive officer Khalid Bin Kalban said in an interview with Bloomberg that the developments include Mirdif Hills, a AED2.5 billion (US$675 million) project in Dubai that will include 1,500 homes, a 230-room hotel, shops and 200,000 ft2 (18,600m2) of office space, which Dubai Investment Real Estate Co. unit will start tendering for the development in the next two months.
“We don’t think there will be need to borrow” for Mirdif Hills, DIC's chief executive officer Khalid Bin Kalban said. “We’ll be able to sell the project easily because of its size, location and components.”
While Bin Kalban believes that there will be no need to borrow for the project, the company may still need bank or debt-market funding for a AED7 billion (US$ 1.9 billion) project planned in Dubai Investment Park. The 13 million ft2 village with homes, shops, offices and hotels may require the company to raise cash either through loans, Islamic bonds or by seeking investors to take a stake in the project, according to Bin Kalban.
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“We are talking to a major investor to come on board and help,” he said. “They will either pay us rental or take over the project within a certain number of years. We are discussing seriously the option of rent to own with them.”
Dubai Investments is also in talks with owners of several unfinished buildings within Dubai Investment Park to take over and complete the stalled construction, he said, without being more specific.
The company is expected to report a profit increase for this year of almost 60 percent to more than AED1.3 billion (US$ 353 million) amid increasing returns from stakes in units, Bin Kalban said.
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