Shuaa Capital, an investment banking and asset management company in Dubai, has sold a plot of land in Business Bay to developer Danube Properties for Dh190 million ($51.73 million).
The Dubai-listed company said it has arranged the sale on behalf of its subsidiaries and other investors. The transaction is part of Shuaa's ongoing strategy to consolidate its asset portfolio, it said in a statement on Tuesday.
“This agreement underscores our dedication to generating shareholder value and participating in the advancement of Dubai's real estate sector. Our strategy focuses on recognising and seizing opportunities that resonate with the ever-evolving UAE market,” said Fawad Tariq Khan, group chief executive of Shuaa Capital.
Boosted by its property and managed funds business, Shuaa reported a 60 per cent quarterly increase in first-quarter net profit.
Net profit attributable to shareholders in the first quarter climbed to almost Dh15 million. Total revenues climbed 1 per cent to nearly Dh60 million in the quarter, driven by recurring revenue generation across all segments.
“This purchase will help Danube Properties to create a more attractive project for investors and home buyers to invest and benefit from future price appreciation, due to its attractive location,” said Rizwan Sajan, founder and chairman of Danube Group.
“Business Bay forms the new business district ... purchase of this particular piece of land will help us strengthen Business Bay as a vibrant downtown where people will be able to live, work and do business – at a location next to Burj Khalifa, the world’s tallest tower,” Mr Sajan said.
Danube Properties plans to develop a residential tower on the acquired plot.
The company has launched six projects, worth Dh3.42 billion, between January 2022 and January 2023. The developer’s current development portfolio includes 22 projects and 10,713 units, with a combined sales value exceeding Dh10 billion.
The UAE property market made a strong recovery from the coronavirus-induced slowdown on the back of government initiatives such as residency permits for retirees and remote workers, as well as the expansion of the 10-year golden visa programme and the economic boost generated by Expo 2020 Dubai and higher oil prices.
The performance of the Dubai property market last year was described as exceptional by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, as the value of deals jumped 76.5 per cent to a high of Dh528 billion.
