Dubai: The time may have come for Union Properties to consider a regional profile, according to a top official.
This may take the form of alliances with developers in some key markets.
"At this stage, we are not discounting any possibility. But the time has come for us to broaden the base of Union Properties," said Simon Azzam, chief executive.
Right now, the company's development portfolio is confined to Dubai.
The company has announced its intention to raise its capital base to Dh1.4 billion as part of the move to raise its profile to take on big-ticket developments, in the "well over billion dirham plus category".
An extraordinary general meeting will be called in early February to get shareholder approval for the rights issue. The share offer price is being finalised.
"We are announcing a Dh1.2 billion residential project Green Community West in early February," said Azzam.
This development is the successor to the mixed-use Green Community project undertaken in alliance with Dubai Investments.
"Also in the next three months, we will start the marketing and sales of projects within Dubai International Finance Centre and the Dubai Autodrome.
"At the same time, our Mirdiff project is coming to market. The magnitude of developments that we envisage for the future cannot be taken on through our existing capital of Dh700 million.
"For instance, the two tower projects at DIFC require nvestments of Dh2.2 billion, which excludes the land costs. So far, the momentum that Dubai has had on the property side in the last four years has kept us busy here.
Now, with a higher capital, opportunities in new markets can be seriously investigated."
Union Properties has pumped Dh300 million into the Dubai Autodrome, which is part of the Dh35 billion Dubailand development undertaken by the Dubai Government.
Azzam sees the present facility as far from realising its full potential. In time, a self-contained community will unfold featuring residential and retail components, a business centre for the motoring industry.
That could entail investments of anywhere around Dh2.7 billion in fresh investments for the Autodrome and adjoining environs.
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© Press Release 2005
