Construction & Real Estate

Kuwait fund sees property, stocks chances abroad

Kuwait's sovereign wealth fund KIA sees opportunities in real estate and stock markets overseas despite having launched a multi-billion dollar fund to buy into the Kuwaiti bourse, its managing director said. The Kuwait Investment Authority (KIA), which manages the Gulf Arab state's oil-generated assets, bought last year into U.S. banks such as Citigroup and Merrill Lynch before both shares fell and the latter was bought by Bank of America for a fraction of the price.

Nakheel commences handover of 300 villas

Nakheel, one of the UAE's largest developers, has announced that it has started handing over 300 villas at Jumeirah Village. Nakheel has sold 96 per cent of available villas and townhouses in Jumeirah Village, and this is the second release of residences in the new Nakheel community at the heart of Dubai. With all work progressing on schedule, Nakheel expects 2,200 villas and townhouses in Jumeirah Village to have been handed over to residents by the end of this year.

BCG: Global realty fall-out weighs $2.8bn on Gulf corps

Boston Consulting Group (BCG) gauged losses incurred by Gulf corporations as a result of the crash in global real estate markets at $2.8 billion, equivalent to 1 per cent of losses borne by international banks and financial institutions. BCG attributed the limited ratio to the fact that Gulf financial and investment foundations only mobilise minimal funds into Western realty, pointing out that the losses weighed exclusively on just four GCC banks in the UAE, Bahrain and Kuwait.

Dubai land department aims to be regional authority

Dubai's Land Department has ambitious plans to become the real estate advisory authority not just for the emirate, but for the whole region, senior officials said. Regardless of financial events taking place globally, the Land Department is still sticking to its original vision of providing a safe environment for investment. There are plans in the future for the Land Department to become the property advisory body for the whole region, as more countries try and evolve their real estate sectors, magnetically drawing in buyers as Dubai has done for years.

Investate Announces USD14.5 Million Net Profit for 2008

Bahrain-based Investate Realty B.S.C. announced its year-end results for 2008 with the company registering revenues of USD 26.8 million and a net profit of USD 14.5 million for the year ending 31 December 2008. This represents a 13.4% return on the company’s paid up capital. Investate’s Chairman Dr. Habib Al Mulla said, “Our ability to consistently deliver substantial returns to our shareholders and clients in spite of the prevailing volatility in the real estate markets, highlights our commitment to successfully achieve our strategic targets year on year."

UK company announces $100 million Abu Dhabi Real Estate Fund

Lewis Charles Securities Limited, the London- based investment house, announced the launch of The Lewis Charles Abu Dhabi Property Fund L.P ("The Fund"). The Fund was established in January 2009 with a strong regional focused board. It is a 3-year closed-ended privately held exempt limited liability partnership investing solely in the Abu Dhabi property market. The Fund will take advantage of the opportunities in Abu Dhabi presented by a chronic undersupply of housing and the population boom. It will be seeking to raise $100 million from investors with a minimum investment requirement of $75,000 for individuals and $250,000 for institutions. The target IRR is over 25% per annum.

Saurooh project work on track

The developer of Oryx Hills, Saurooh Al Bahrain, has confirmed that the project is firmly on track for completion in the first quarter of next year. Saurooh Al Bahrain vice-chairman Ebrahim Hussain Ebrahim expressed his optimism about the future and his confidence in GCC economies to sustain the impact of the world financial crisis. He said that more than 40 per cent of the construction work on the project, which forms part of Al Areen Development Project, is completed, including infrastructure works and concrete, electricity, swimming pools and other technical components.

Dubai's Emaar in surprise loss on U.S. writedowns

Dubai's Emaar Properties made a loss of 1.77 billion UAE dirhams ($481.9 million) in the fourth quarter, far below analysts' expectations, as writedowns in U.S. assets dragged the company deep into the red. The company said o revenue for the fourth quarter fell to 3.495 billion dirhams from 5.142 billion dirhams a year ago. The firm posted profit attributable to shareholders of 3.06 billion dirhams in 2008 compared with 6.58 billion dirhams in 2007.

Iran Wins $1.5bln Basra Construction Contract

An Iranian firm has won a $1.5 billion contract to build a new town in the southern city of Basra, Hayder Ali, the head of Basra Investment Commission said. The town will include 5,000 housing units as well as modern amenities like schools, markets, parks and health facilities, he said. It is Iran's largest construction contract in Iraq since the 2003-US invasion.