Dubai developer Nakheel weighs IPO down the road

Chairman says the company would consider an initial public offering once it had repaid its debt obligations.

The Dubai developer Nakheel is evaluating a possible share sale after repaying billions of dollars in debt.

The Palm islands developer, which was taken over by the Government of Dubai in 2011, is benefiting from a property rebound in the emirate.

Nakheel expects to generate Dh1.2 billion from its leasing portfolio this year and treble the income to more than Dh3bn by 2016, said Ali Rashid Lootah, the Nakheel chairman.

Mr Lootah said the company would consider an initial public offering once it had repaid its debt obligations. “We are considering it seriously,” he said. “It is under evaluation.”

Nakheel had total bank debt of Dh7.9bn at the time of the 2011 restructuring, due for repayment in 2015, 2016 and 2018.

Last month Nakheel repaid Dh2.35bn in bank debt more than 18 months early, helped by rising property demand.

That was part of a Dh6.8bn chunk of debt due in September next year.

It has about 4,000 units in its development stage, which it estimates could generate Dh13bn in sales.

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