Al Mazaya raises capital to KD45.5m

Al Mazaya has concluded a number of significant deals that have generated adequate capital to finance a number of projects currently under development, as well as a portfolio of ambitious projects in the near future.

Besides selling 23.7% of the company's capital, Al Mazaya recently sold 80% of the Sky Gardens at DIFC to Amlak Finance for Dhs1.65bn ($449.3m).

Al Mazaya will allocate the resulting surplus liquidity accumulated from these two deals to carry out a number of projects that have already been announced, such as the Dhs5bn Downtown Jebel Ali mega project and the firm's Dhs900m flagship tower on Sheikh Zayed Road.

Eng. Khalid Esbaitah, Vice Chairman and CEO of Al Mazaya Holding, said:

"Al Mazaya has expanded its geographical presence impressively, attracting the attention of international investors. We have received a series of serious offers from investors interested in acquiring strategic shares in the company's capital. We recently sold 23.7% of the capital to strategic investors, and launched a fully subscribed IPO.

"Al Mazaya's investments in Kuwait, the UAE and other GCC countries amount to $300m, $10bn and $1bn respectively. The capital raise will fund expansion plans across the Arab region and boost the value of the company's shares, and securing high returns for investors," Esbaitah added.

Esbaitah said that the liquidity collected from the capital increase and from the sale of some stakes will be a cost effective alternative to the conventional funding methods the company has adopted in order to cover its growth strategy in the past.

The current surplus liquidity will be instrumental to the completion of projects, allowing the company to finance these projects without having to enter into strategic partnerships or establish real estate funds to provide the necessary finance.

The company has a group of highly skilled and knowledgeable personnel with extensive experience in the GCC region's real estate market, which has contributed significantly to the securing of the company's position among the leaders in the regional real estate development and investment sectors over the last five years.

Al Mazaya Holding is developing 9 plots in Downtown Jebel Ali.

The plots occupy two quarters of the project. The company is planning to build a commercial tower in the first quarter, and 8 other buildings in the other.

The first building comprises 30 storey and serves the commercial sector.

It includes 6 parking levels, while the other 8 buildings will serve the residential, commercial and hotel sectors, and all will be located in the fourth quarter of the project.

Al Mazaya has strategically acquired a plot of land, valued at Dhs228m, in a prime location on Sheikh Zayed Road, on which to build its flagship "Al Mazaya Tower".

The 70-storey tower will be designated for office space.

The company has invited world-renowned architectural consultants to bid the design contract on a fast track basis, to enable Al Mazaya complete the project within 24 months.

The tower will be kept as fixed asset and invested on a long-term basis for annual revenue of 20%.