Damac spends $513mn on Dubailand plot

Land bought using proceeds from $650mn sukuk issued earlier this year

NEWS, Projects, Akoya, Damac, Dubai Holding, Dubailand, Global Depository Receipts, London Stock Exchange, Sukuk

Developer Damac has announced that it has spent $513mn on a 55mn ft2 plot at Dubailand from Dubailand LLC - a company owned by Dubai Holding.

The company said that it would pay for the land using proceeds from the $650mn sukuk issued during the second quarter of this year, shortly after the firm's flotation on the London Stock Exchange.

In a statement, Damac said: "The land bank is over 30% larger than Damac's current Akoya masterplanned development of 42,000,000ft2 and the acquisition is in line with the company's long term strategy of replenishing its land bank with land in prime Dubai locations to ensure a consistent pipeline of future sales inventory."

It added: "Further announcements on this development plot will be made in due course."

Last week, Damac said that holders of its Global Depository Receipts (GDRs) can be switched in exchange for shares which will trade on the Dubai Financial Market, subject to it gaining a satisfactory listing.

Damac chairman Hussain Sajwani said: "The offer demonstrates our confidence in our home market of Dubai and our commitment to the DFM, which will allow our large domestic investor base to trade our shares on their local market." 

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