Tuesday 2 October 2018

Exclusive: Damac to maintain Dh5bn of annual sales amid debt reduction plan   - The National

Exclusive: Damac to maintain Dh5bn of annual sales amid debt reduction plan   - The National:

Damac Properties is targeting at least Dh5 billion ($1.36bn) of annual sales to cover its costs while it works to pay down debt over the next three years and increase its profits after a challenging period, its chief financial officer said.

“We’d like to maintain sales at a certain level to keep our overheads covered,” Adil Taqi told The National in an interview on Tuesday. “If you consider we reached around Dh7bn in 2016 when the market first softened, we believe [a target of] Dh5bn is reasonable during the current low cycle.”

Demand for Damac’s pipeline of luxury and affordable units remains strong, he added, and land values in Dubai as a percentage of gross development value remain low – around 30 per cent compared to 60 per cent in London or Hong Kong, making the emirate “an extremely attractive market”.

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