First Dubai Real Estate raises capital to KD100m

Having received approval from the General Assembly to increase the firm's capital from KD22.075.900 to KD100m, the company will issue the equivalent of 779,241,000 shares at a nominal value of 100 fils per share in order to up its liquid capital by 353%, raising a total of KD77,924,100 to make up the capital sum of KD100m. Existing shareholders will benefit from this pre-emptive offer by making a once-off payment within 15 days, after which new shareholders may subscribe. The firm's board of Directors has been authorized to regulate and oversee the terms and conditions under which the capital is to be raised.

The company's new capital was specified at KD100m divided into 1 billion shares valued at of 100 fils per share, all of which are cash shares.

Siraj Al Baker, Chairman of First Dubai Real Estate Development Company, said:

"This capital increase will funding our expansion plans across the GCC and the surrounding regions. This expansion, in turn, will open the door to further investments and projects, which need solid financial backing in order to meet the requirements of such an expansion strategy."

Al Baker added that the company has aggressive expansion plans, including the development of its Dhs450m "Morina Residence", a leading project ideally located near the Gate of Shams Abu Dhabi on Al Reem Island.

Al Baker also announced First Dubai Real Estate Development Company's first project, following the purchase of four plots of residential land for KD66m. The plots form part of the prestigious Waterfront Project, a master project under development by Nakheel and the world's largest beachfront development, which will add 70 kilometers of prime real estate to the UAE's coastline.

First Dubai Real Estate Development Company has concluded the sale of the DIFC based SkyGardens tower at a nett profit of KD74m, which will be added to the company's financial results for this year and for the first half of 2009.