Company finalises deal for allotment of units with a developer
DIFC Investments (DIFCI), the investment arm of the Dubai International Financial Centre (DIFC), has ruled out plans to invest in the real estate sector, its chief executive has said.
"We are not looking at investing in real estate projects at this stage," Shahli Akram told Emirates 24/7.
The company has already restricted its investment in Dubai Pearl project to $13 million with "no further commitment beyond the amount," he added. In 2008, it had announced it would invest Dh3 billion in the project through a real estate fund.
In 2010, DIFCI, according to the financial statements, finalised an agreement for allotment of certain real estate units with a real estate developer, but based on the current market value of the units took a reversal of $9.88 million.
DIFCI earlier said losses narrowed to $272 million in 2010 compared to $562 million in 2009, while revenue slipped to $146.3 million from $152.2 million.
"The loss in 2010 was mainly attributable to the devaluation of the real estate portfolio due to the market conditions," Ahmed Humaid Al Tayer, DIFC Investments chairman, had said in a statement.
This year, the company plans to dispose of SmartStream Technologies, which it acquired in 2007 and also complete the sale of high-end Kuwaiti fashion retailer Villa Moda.
Meanwhile, DIFC expects approximately two million square feet of commercial office space is expected to be handed over by third-party developers in the next 18 to 24 months. In December 2010, it announced a new pricing structure that would offer its tenants over 50 per cent in discounts with the rents starting from $44 or Dh160 per square feet to a maximum of $76 or Dh280 per square feet in 2011.
Last year, Union Properties Chairman Khalid bin Kalban told this website it had restarted talks with DIFC for selling 200,000 to 300,000 square foot of space in its Index Tower.
© Emirates 24|7 2011
