Damac reports decline in property development sales

Updated 15 August 2017

Damac reports decline in property development sales

LONDON: Damac Properties reported a second consecutive quarterly income decline after property development sales fell sharply.
The developer behind the only Trump-branded golf course development said total comprehensive income declined 19 percent to 704.8 million dirhams ($191.9 million) as the money it earned from property development fell.
Second-quarter revenue dropped to 1.57 billion dirhams from 1.75 billion dirhams a year earlier. Hussain Sajwani, chairman of Damac Properties, gave an upbeat assessment of the market despite the decline in sales.
“The property market in Dubai continues to demonstrate further stabilization, and our medium- to long-term outlook remains positive as Damac continues to develop innovative products that appeal to both end users and investors,” said Sajwani.
Damac is developing thousands of new homes across three main projects in the emirate — Aykon City, Damac Hills and Akoya Oxygen.
It delivered 1,071 units at its Damac Hills project in the first half of the year, bringing the total number of homes handed over to 3,100.
In February, the developer opened its flagship Trump International Golf Club Dubai, the first Trump-branded course to be developed in the Middle East.
Damac is currently building about 5,000 villas at its Akoya Oxygen master community in Dubailand, with a further 1,300 villas scheduled to begin construction in September 2017, the developer said.
Work is also nearing completion on Damac Towers by Paramount Hotels & Resorts, a four-tower, 250-meter high development consisting of over 2,000 units in the Business Bay district. Damac said property development revenues fell to 925.9 million dirhams in the second quarter, compared to 1.44 billion dirhams a year earlier.
However, land sales rose to 644.2 million dirhams from 312.8 million dirhams over the same period.


Struggling WeWork mulls bailout deals with SoftBank, JP Morgan

Updated 14 October 2019

Struggling WeWork mulls bailout deals with SoftBank, JP Morgan

TOKYO: Under-pressure start-up WeWork is considering two huge bailout plans including a cash injection that could see Japanese investment titan SoftBank take control of the firm, according to reports.
The office-sharing giant had been on course for a massive initial public offering until last month when questions began to be asked over its governance and profit outlook.
The firm’s valuation plunged from $47 billion in January to less than $20 billion in September and the listing plans have been dropped, while co-founder Adam Neumann stepped down as chief executive.
With New York-based parent company We Co. not expected to push for the IPO this year, the cash-strapped firm is looking for a financial lifeline.
The Wall Street Journal, New York Times and Bloomberg News cited unnamed sources close to the talks as saying SoftBank — the US firm’s biggest shareholder — had drawn up a proposal that gives it full control of WeWork.
The move would dilute the voting power of Neumann, who remains as chairman of the company he started in 2010 and also currently maintains control a majority of voting shares.
They also reported that WeWork is looking at a deal with Wall Street giant JP Morgan to raise $5 billion in debt, with the Times saying directors of We would be meeting as soon as Monday afternoon to discuss that.
“WeWork has retained a major Wall Street financial institution to arrange financing,” the Journal reported a company spokesman as saying.
“Approximately 60 financing sources have signed confidentiality agreements and are meeting with the company’s management and its bankers over the course of this past week and this coming week.”
The New York-based startup that launched in 2010 has touted itself as revolutionizing commercial real estate by offering shared, flexible workspace arrangements, and has operations in 111 cities in 29 countries.
However, the company, which lost $1.9 billion last year, has faced skepticism over its ability to make money, especially if the global economy slows significantly.