Company may reactive the fund at the right time: Spokesperson
Dubai-based Deyaar Development has not cancelled plans to launch its Dh500 million distressed fund and may reactive it when the "time is opportune", Emirates 24/7 can reveal.
"We haven't cancelled the plans for our distressed fund... it is put on hold. We may consider relaunching it when the time is right," a company spokesperson said.
This website had reported in February 2010 that the developer had delayed the closing of its distressed fund to the second quarter of 2010 after foreign investors opted out from their commitments.
Markus Giebel, the then CEO of the company, had said: "Last year was tough because of the continuing challenges in the global financial sector. We could not close the fund since foreign investors opted out from their commitment."
The five-year closed-ended Shariah-complaint fund, with a seed capital of Dh100 million from Deyaar, was looking to buy properties from investors who had defaulted. The fund was to be managed in association with Dubai Islamic Bank and Rasmala Investments.
The developer was also planning a second fund of a similar value that would target distressed properties across the Middle East.
In April, the developer said it has commenced handover for 595 apartments in its three residential projects in Business Bay and will be offering financing options to its customers to help reduce the default rate.
Lina Anani, Vice President - Communications & Marketing, Deyaar Development, told this website that the company has already sold all the apartments in the three projects and does not expect a "high" default rate.
"We have already sold all the apartments. Although it is difficult to estimate the default rate now, we are looking to reduce the default rate by offering our customers a number of financing options," she had said.
The company will be delivering two more projects by year. It is currently focusing on the growth of its property and facility management operation, which oversees 14,000 units.
© Emirates 24|7 2011
