Saturday 3 October 2009

US firm plans $1bn property lifeline

An announcement that a US-based developer and investor is planning to buy up heavily discounted properties from desperate owners and developers through a new distressed asset fund could have a major impact on property markets in Abu Dhabi and Dubai, its senior executive said.

Hines Interests said the fund would be the largest of its kind to launch in the UAE and could help some stalled developers to proceed with their projects.

Jürgen Herre, the head of the Middle East and North Africa region for Hines, said the company would aim to raise between US$250 million (Dh918m) and $500m from regional funds and investors, which would have “about $1 billion worth of firing power with leverage” – combined debt and equity – for distressed properties in the UAE and possibly the wider region. The money could be used to make between eight and 12 large investments.

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