Damac Acquires Dubailand Plot For $513m

Dubai developer Damac Real Estate has acquired a plot in Dubailand for $513 million, the company said in a statement.

The plot comprises of 55 million square feet in Dubailand, almost 30 per cent larger than Damac’s current biggest project Akoya, which covers 42 million square feet.

The land is being purchased through the company’s subsidiary Front Line Investment Management and will mainly be funded using the proceeds of the $650 million sukuk, which the company issued during the second quarter of this year.

The acquisition is in line with Damac’s long-term strategy of replenishing its land bank with resources in prime Dubai locations to ensure a consistent pipeline of future sales inventory, the developer said.

Damac said in May that its net profits for the first quarter rose 79 per cent to reach $210 million compared to $117 million in the corresponding period last year. The company attributed the growth to favourable conditions in the Dubai market.

Booked sales also doubled year-on-year to reach $864 million in the first quarter, the real estate firm said.

Damac has been one of the most active developers in Dubai in recent months, launching several new projects to keep pace with growing demand in the emirate’s booming property market.

The developer recently said that all the luxury apartments in its latest project Loretto in the Akoya development was sold out in an evening.

Damac’s other projects in the mega development include Fendi-styled villas and Trump Estates, which is built in a joint venture with American property mogul Donald Trump.