Nakheel to sell 1,150 apartments near Dubai’s Dragonmart

The property developer Nakheel is set to begin selling about 1,150 apartments in a major tower development to be built at its Dragonmart retail complex on the outskirts of Dubai. (AFP)
Updated 18 April 2018
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Nakheel to sell 1,150 apartments near Dubai’s Dragonmart

MADRID: The property developer Nakheel is set to begin selling about 1,150 apartments in a major tower development to be built at its Dragonmart retail complex on the outskirts of Dubai.
The Palm Islands developer is tendering the project, which was originally intended for company’s rental portfolio, its chairman, Ali Rashid Lootah, told Arab News on the sidelines of the World Retail Congress in Madrid. Lootah said that the project would not be officially launched until the construction contract had been awarded, which is expected later this year.
“It is important to win the customer’s confidence,” he said. Nakheel is gearing up to complete 1,500 villas in the city’s Nad Al Sheba district, which will be rented.


The handover is expected to boost the developer’s recurring revenues this year as it switches its focus from massive masterplanned projects to increasing rental income through the construction of hotels and shopping malls.
“A lot of our product will be in the market in the third quarter of this year, so our recurring income next year will be much higher,” Lootah said. He also revealed that the developer was eyeing more projects in the UAE’s northern emirates.

The Dubai property market is coming under pressure after six years of rampant construction that has led to a glut of new homes, encouraging developers such as Nakheel to boost their recurring revenues and reduce their reliance on one-off sales.
About 3,000 units entered the market in the first three months of 2018, with almost 80 percent of them apartments, according to data from JLL, the property broker.
Sales prices in the emirate have declined by about 4.1 percent over the year, while rents have fallen by about 6.5 percent, it said.
Dubai’s retail sector has been even worse off, with thousands of square meters of new space hitting the market. JLL estimates that retail rents have fallen by as much as 25 percent in the past year with vacancy rates rising from 9 percent to 12 percent.

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3,000

New residential units entered the Dubai property market in Q1 2018, according to JLL


Etihad proposes to invest in Jet Airways at 49% discount

Updated 16 January 2019
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Etihad proposes to invest in Jet Airways at 49% discount

  • The 25-year-old Indian airline has been roiled by financial difficulties, racking up a pile of dues to pilots, lessors and vendors
  • Jet will not be able to continue funding operations beyond the next week and Etihad is willing to inject $35 million if some conditions are met

Etihad Airways has offered to pick up shares of debt-laden Indian carrier Jet Airways Ltd. at a 49 percent discount and to immediately release $35 million after certain conditions are met, CNBC-TV18 reported on Wednesday.
Shares of Jet Airways, in which Etihad already owns a 24 percent stake, tumbled as much as 7.5 percent to 271.75 rupees ($3.83) in their biggest intraday drop since early December.
The Abu Dhabi carrier has offered 150 rupees for each Jet share, CNBC-TV18 said, citing a letter from Etihad’s CEO.
Tony Douglas has written to the State Bank of India (SBI) , Jet’s biggest lender, on the restructuring plan for the Indian airline, the report added.
The 25-year-old Indian airline has been roiled by financial difficulties, racking up a pile of dues to pilots, lessors and vendors, at a time when intense pricing competition, a weak rupee and rising fuel costs are weighing on the broader airline sector in the country.
Jet will not be able to continue funding operations beyond the next week and Etihad is willing to inject $35 million if some conditions are met, the CNBC-TV18 report cited Douglas as saying in his letter.
Jet and Etihad representatives are due to meet in Mumbai with lenders, led by SBI, on Wednesday to discuss the restructuring proposal that involves Etihad increasing its stake, a source with knowledge of the matter told Reuters on condition of anonymity.
Etihad wants Jet’s founder and Chairman, 69-year-old Naresh Goyal to step down from the board and his stake to be slashed to 22 percent from 51 percent, according to CNBC-TV18.
Goyal’s penchant for control, according to people who have worked with him, has emerged as a major obstacle as the airline tries to negotiate a rescue deal, Reuters reported last month.
Etihad is also seeking an exemption from the market regulator on preference pricing and open offer guidelines to invest more for the bailout, the report added.
Under India’s capital markets regulations, Etihad is required to make an open offer to shareholders for a majority of the shares once its stake goes past 25 percent, unless it obtains a rare exemption from the market regulator.
India Ministry of Civil Aviation Secretary R N Choubey on Wednesday told reporters that the aviation ministry had not yet received an official request from Jet and Etihad for an exemption from an open offer.
Jet and Etihad were not immediately available for comment.