Abu Dhabi's Manazel plans 2012 market listing
Abu Dhabi, March 19, 2012
Manazel Real Estate, which focuses on mid-income housing and has assets worth $1.39 billion, plans a listing on Abu Dhabi stock exchange this year, its chairman said, betting improved market sentiment will create appetite for the issue.
The Abu Dhabi-based joint stock company with around 3,000 shareholders has initiated the process of listing with the United Arab Emirates' market regulator.
'It is the right time to start the listing, the markets will move up by the end of this year,' Mohamed Muhana al-Qubaisi told Reuters. 'We have a good track record with stable income forecast in the coming years.'
Abu Dhabi's bourse has rallied sharply since mid-January, extending its year-to-date gains to 8.4 percent as retail investors poured money back into UAE equities.
The market usually moves at a more staid pace than its neighbour Dubai, but analysts expect it to catch up. Dubai's index has risen 23.3 percent so far this year.
In Abu Dhabi, property stocks Aldar Properties and Sorouh Real Estate, which are in merger talks, have driven a recent rally.
Manazel's assets totaled Dh5.1 billion ($1.39 billion) at the end of 2011 with the firm completing 80 per cent of its projects. It had net profit of Dh361 million in 2011, up 60 per cent over the previous year, a company statement showed.
The firm which develops mainly mid-income residential projects in Abu Dhabi has reduced its loans from Dh2.2 billion to Dh790 million at the end of last year. It has a few projects in Dubai and one in Jordan.
Ongoing projects include the second phase of its '9712 Capital' complex with 1,000 residential units to be delivered next year and the Amman Gardens project with 1,500 residential units for delivery in 2013, Qubaisi said.
Manazel has a capital of Dh2.5 billion but has no plans to increase it soon, he said.
Abu Dhabi property prices have been sliding lower with the sector struggling to recover from the downturn seen after the 2008 global financial crisis. Property firms have been forced to cancel projects and restructure their huge pile of debt.-Reuters