Daman, eight others set up $180m investment firm
Dubai, September 17, 2008
Financial services company Daman Investments said nine partners have jointly launched a $180 million UAE-focused investment holding company Buildan Development Limited (Buildan).
Daman Investments, which is among the partners said eight others are GCC based (from Iraq, Kuwait, Saudi Arabia, UAE) and are a mix of private and public sector institutions as well as high net worth individuals.
It said Buildan is a venture capital company that aims to become a leading developer and investor in aviation and logistics-related businesses as well as real estate projects within and around the new Al Maktoum International Airport developed by Dubai World Central at Jebel Ali.
These businesses may include specialised airport facilities, long-term investments in the airline industry and freehold purchases of commercial property, warehousing or logistics property as well as specialised airport facilities and residential property.
Buildan will work through direct investment, partnerships, venture capital and infrastructure investments. Already in operation, Buildan is fully staffed and set up with projects in the pipeline, some of which are nearing completion. Major projects will be announced in mid October, 2008.
Shehab Gargash CEO of Daman Investments said: "Buildan was created to participate in very early entry opportunities which we recognised when the new Jebel Ali area airport (now Al Maktoum International Airport) was announced.
Conceived as a holding company that will act directly or through special purpose vehicles, Buildan is a very early strategic investor within this new infrastructure city and international logistics hub currently being developed with costs estimated at $33 billion.
"We believe that Buildan is yet another example of Daman's ability to bring premium financial products to life with enhanced investor value. We are proud to be a pioneer investor in this important infrastructure and logistics hub which will change the face of transportation and tourism in the region," Gargash said.
"As the business evolves, Buildan will naturally require a broader capital base. We foresee that we may consider an IPO within a 4-5 year time horizon."
Ahmad Al Matrooshi, strategic project manager said: “We have had the opportunity to work closely with Dubai World Central and their highly professional team from a very early stage of the project. This enabled us to bring value as a private sector contributor to this impressive initiative.”
Al Maktoum International Airport will house six integrated clusters and become the largest, most technically advanced new international airport in the world.
“Although a very young company, Buildan is built upon a clear vision with well defined goals backed with a team of seasoned investment professionals. With our specific geographic and sector development focus, the company will benefit from its early mover advantage," said Al Matrooshi. - TradeArabia News Service