Kuwait's Al Mazaya Holding said on Monday it will not go ahead with a full takeover plan of its First Dubai Real Estate Development subsidiary.

Mazaya, which now owns 67 per cent of First Dubai, said the benefit from buying the remaining 33 per cent stake is 'marginal and does not justify the costs of the acquisition', Mazaya said in a statement on the Kuwaiti bourse website.

The developer said it may reconsider the acquisition plan if conditions changed in the future.

Last month, Mazaya said it hired Al Shall Consulting as an adviser to help it decide on a fair price for the deal after saying it was considering consolidation among some of its units to reduce costs and was taking provisions as the global downturn hits the Gulf property market.-Reuters