Working in a diverse portfolio that includes branded residences, community project development, and skyscrapers. Founded in 1982 by Hussain Sajwani, the company has been working to shape the Middle East’s luxury real estate market.
The DAMAC has been setting standards in the Dubai real estate industry for innovation, design craftsmanship, and luxury lifestyles. Let’s find out more about this topic in the following sections.
What was the DAMAC $255 Million Offer?
The founder of the Dubai property firm and DAMAC CEO Hussain Sajwani made an interesting offer of $255 million in 2021 to completely privatize the firm, which went public in 2015.
The founder either directly or indirectly held around 88% of the shares at the time when the offer was made. The offer, however, routed through the investment vehicle Maple Invest Co., which intended to increase the overall holding to 90 percent in order to complete the delisting from the Dubai Stock market.
Why was the DAMAC $255 Million offer made?
DAMAC posted annual losses in the year 2019 and 2020, which combined with a declining market share trend. The S&P Global also issued a negative outlook towards DAMAC’s credit rating, largely due to weak market recovery. All these factors led to the initiation of the privatization of the DAMAC properties group. The deal also confirmed the Reuters report of 2020 that Sajwani was considering buying back all the shares.
The Current Stock Market Scenario of DAMAC Dubai Real Estate News
At 1.400 Dirhams, DAMAC’s stock was completely delisted from the market on Feb 14, 2022. After the offer was made public, in the next 6 months, the company was able to gain 90 percent of the shares. Which gave them the right to delist the shares in their entirety.
DAMAC’s Progress after Delisting
DAMAC has been a luxury project developer since its inception, the company has developed many projects in the past, such as DAMAC Hills, Cavalli Tower, SAFA One & SAFA Two and ZADA Tower. However, since its delisting, the company has shown its remarkable growth potential by concluding various projects:
- DAMAC Sun City: Located in the Dubai heartland, the project offers 4-5 bedroom apartments with around 555 units for sale. The project has been a total success, with almost all units sold in the first quarter of the project. The amenities of the project include an outdoor, lush green garden, an amphitheater and hiking trails.
- Safa Two: With a breathtaking view of Dubai’s Skyline, the project offers residential luxury towers in the Business Bay area.
- DAMAC Bay 2: An ongoing project that carries huge potential as it promises a luxury waterfront view with good connectivity. It is set to enhance Dubai’s real estate landscape.
Conclusion
Thus, we can say that the Founder of DAMAC Real Estate Hussain Sajwani made a $255 million offer for a DAMAC stock buyout. The DAMAC property deal marks a significant shift in the Dubai market privatization trends, as the DAMAC CEO offer for a private property firm buyout aligns with broader strategies in corporate privatization Dubai and real estate investment Dubai, reinforcing investor confidence in investment in Dubai real estate, particularly amid growing interest in DAMAC stock buyout opportunities.
