17 November 2008
Al Benaa Real Estate, an Abu Dhabi-based property development company, is studying the option of launching an initial public offering next year and has temporarily put new projects on hold, a top company executive said.
"We will announce the conversion of the company into a public joint stock company next year and we think we will not face any problems in that regard," said Noura Jassem Al Nowais, Chief Executive Officer, yesterday.
The company has also decided not to start its new real estate ventures due to fluctuation in the prices of building materials in the global market.
"The freeze of projects has nothing to do with the financial crisis. It is connected with the fluctuation of the prices of building materials. Undoubtedly, the drop in the prices of materials will benefit developers and consumers. But the problem is that this drop in prices is not stable. So, the prediction of prices in the coming period will be difficult."
Al Benaa will resume its real estate projects when the prices stabilise.
According to Al Nowais, current problems related to banking finance in the UAE are temporary. The international demand for residential units and hotel apartments will continue.
She urged property developers to show flexibility in the payment of installments of units so that the repercussions of the global financial crisis come to an end.
"We started to notice a fall in the prices of properties. But this situation is temporary and the demand for units remains high."
Al Nowais said the current situation has encouraged many local and international property developers to merge and form blocs.
Set up in 2006 with a capital of Dh100 million, Al Benaa has three real estate projects in Abu Dhabi, Dubai and Fujairah, Al Nowais said.
The real estate company has signed joint venture agreements with SEF Singapore and the Far East Organisation of Singapore for real estate and facilities management.
Al Benaa Real Estate, an Abu Dhabi-based property development company, is studying the option of launching an initial public offering next year and has temporarily put new projects on hold, a top company executive said.
"We will announce the conversion of the company into a public joint stock company next year and we think we will not face any problems in that regard," said Noura Jassem Al Nowais, Chief Executive Officer, yesterday.
The company has also decided not to start its new real estate ventures due to fluctuation in the prices of building materials in the global market.
"The freeze of projects has nothing to do with the financial crisis. It is connected with the fluctuation of the prices of building materials. Undoubtedly, the drop in the prices of materials will benefit developers and consumers. But the problem is that this drop in prices is not stable. So, the prediction of prices in the coming period will be difficult."
Al Benaa will resume its real estate projects when the prices stabilise.
According to Al Nowais, current problems related to banking finance in the UAE are temporary. The international demand for residential units and hotel apartments will continue.
She urged property developers to show flexibility in the payment of installments of units so that the repercussions of the global financial crisis come to an end.
"We started to notice a fall in the prices of properties. But this situation is temporary and the demand for units remains high."
Al Nowais said the current situation has encouraged many local and international property developers to merge and form blocs.
Set up in 2006 with a capital of Dh100 million, Al Benaa has three real estate projects in Abu Dhabi, Dubai and Fujairah, Al Nowais said.
The real estate company has signed joint venture agreements with SEF Singapore and the Far East Organisation of Singapore for real estate and facilities management.
By Abdel Hai Mohamad
© Emirates Business 24/7 2008
