The 55,000,000 square foot land in Dubai is being purchased through subsidiary Front Line Investment Co for $513 million, the developer announced earlier this week.
Damac said in the statement, “the acquisition is in line with the company’s long-term strategy of replenishing its land bank with land in prime Dubai locations to ensure a consistent pipeline of future sales inventory.”
The developer is funding the acquisition from the proceeds of a $650 million sukuk it sold in the second quarter.
Last week, Damac announced it is offering to convert Damac Real Estate Development Limited (DRED) London-listed Global Depository Receipts (GDRs) for shares that would be listed on the Dubai Financial Market (DFM).
Damac, with a market capitalisation of about $3.5 billion, is expected to list up to 15% of the company on Dubai’s main bourse.