Real estate developer Cayan Group is planning to spend almost $1 billion on three key projects in the Gulf region – a twin-tower development in Dubai (UAE) and two other mixed-use projects in Riyadh, Saudi Arabia, said a report.
Cayan, which built the landmark 307-m twisted skyscraper in Dubai Marina, already has projects in Saudi Arabia, Dubai and Lebanon, reported Bloomberg.
In Dubai, the Saudi-based developer will build a 38-storey hotel-apartment complex and a 42-storey residential tower costing Dh1 billion ($273 million).
The buildings on Dubai’s Umm Suqeim road are set for completion by mid-2018, the report stated citing its top official.
"We are believers in the Dubai and Saudi markets,” the chairman Ahmed Alhatti said in an interview. “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,” he added.
Cayan will start selling properties in the planned twin-tower development in Dubai and work on the Riyadh project that include residences and offices, said the report.
The company will be the majority shareholder in a fund to be managed by leading UAE investment bank Shuaa Capital that will provide financing for the Dubai project. Funding will be split equally between equity, property pre-sales and bank loans, the chairman said.
It is also considering several development opportunities for homes and hotels in London (UK) and Paris (France), it added.
In its home market, Cayan will be spending about $666 million on two projects in Riyadh. "We will sell serviced land plots to select buyers who can then build the homes themselves," Alhatti said in the interview.
The company is also planning to build about 250 homes on part of the one million sq-m plot near the Diplomatic Quarter in the next three years, he added.