MIDDLE EAST

Cayan plans US$1b of Dubai and Saudi real estate developments

PUBLISHED : Wednesday, 15 April, 2015, 6:00am
UPDATED : Wednesday, 15 April, 2015, 6:00am

Cayan Group is planning to spend almost US$1 billion on three property projects in Dubai and Saudi Arabia, according to the chairman of the Saudi real estate developer.

The privately owned company would start selling properties in a planned twin-tower development in Dubai and work on two projects in the Saudi Arabian capital Riyadh that included residences and offices, chairman Ahmed Alhatti said.

"We are believers in Dubai and the Saudi markets," Alhatti said. "This is the best time to invest as 2015 will be a time of growth and 2018 will be the peak of the market. Prices are now very competitive and the market is mature."

Cayan, which built the landmark 307-metre twisted skyscraper in Dubai Marina, already has projects in Saudi Arabia, Dubai and Lebanon. It was considering "several development opportunities" for homes and hotels in London and Paris, Alhatti said.

In Dubai, Cayan would build a 38-storey hotel-apartment complex and a 42-storey residential tower costing one billion dirhams, he said.

The buildings on Dubai's Umm Suqeim road are set for completion by mid-2018. Cayan will be the majority shareholder in a fund to be managed by Shuaa Capital that will provide financing for the Dubai project. Funding will be split equally between equity, property pre-sales and bank loans.

In its home market, Cayan will spend about 2.5 billion riyals on two projects in Riyadh. It would sell serviced-land plots to "select" buyers who could then build the homes themselves, Alhatti said.

The company was also planning to build about 250 homes on part of the one million-square-metre plot near the Diplomatic Quarter in the next three years, he said.

Cayan would build a 15-storey office tower on King Fahad Road to serve as its new headquarters, Alhatti said.