LONDON: Dubai’s Damac Real Estate will begin investor meetings today ahead of its potential debut Sukuk offering, a closely watched deal in the emirate’s crowded property market.
The luxury real estate developer is expected to raise $500m through the five-year note, according to Standard & Poor’s, which has assigned a preliminary rating of BB to the issue. It will begin a three-day roadshow in Singapore on March 28, before moving to the UAE on March 30 and London on March 31.
“Cashflows are likely to be ‘strong’ for the time being, meaning this year and next, and for now Damac is a negative-net-debt credit,” said Richard Segal, fixed-income analyst at Jefferies.
Investors gauging fair value for the new issue will likely look at Sukuk issued by other property companies in the UAE, such as Emaar Properties, Aldar Properties and Dubai Investment Park. Last year the company sold GDRs on the LSE, raising $348m, less than the $500m it had initially targeted. The share sale put a value of $2.65bn on Damac, which was the first Dubai property developer to list in London. Reuters
