Chinese group to buy stake in $1bn Dubai resort
Dubai, June 26, 2013
China State Construction Engineering Corp (CSCEC), one of the world's largest construction firms, said it had agreed to invest in a $1 billion resort project in Dubai - its first real estate investment in the Middle East.
CSCEC declined to specify how much money its Middle Eastern arm would put into the Viceroy Dubai Palm Jumeirah project, on which it is the main contractor.
The project is being developed by SKAI Holdings, a Dubai-based real estate investment firm. Including a hotel and furnished residences, it is scheduled to be completed in 2016.
Yu Tao, chief executive of the CSCEC's regional arm, said in a statement that such projects could appeal to the rising number of Chinese individuals investing in real estate and other alternative investments abroad.
Dubai's property developers have announced billions of dollars worth of new projects this year as the emirate's property market has begun to recover from its 2009-2010 crash.
With many international banks cautious about lending because of unstable global markets, analysts have said many developers may find it difficult to arrange enough bank loans for their projects, forcing them to look at other ways to raise money.-Reuters