Deyaar suspends developments

[sharewadi]

There was a Deyaar profit forecast for 2008 from the CEO, which included comments about suspending unsold developments that prompted further headlines ...

Reuters 21 January 2009:

Deyaar puts unsold projects on hold Dubai developer Deyaar (DEYAAR) has put all its unsold projects on hold due to the global financial turmoil but still expects to post record profits for the fourth quarter, its chief executive said on Wednesday. Markus Giebel told reporters the company had put 'many projects' on hold adding 'it's wrong to deliver units which have not been promised to the customer'. Gibel did not give figures when asked about his profit forecast for 2008 and the fourth quarter, but said: 'The increases are substantial ... (We have a) record breaking quarter and year.' Deyaar has an 8 percent debt to equity ratio, making it almost 'debt free', Giebel said. But he predicted that the financial crisis will dog the sector for a least six more months. 'People say it will be over in the first quarter. No way. It's not a process to be completed in the next six months.' Deyaar will deliver five residential and commercial projects in Dubai in 2009, he said, adding it has around 22 projects in the emirate, worth between 20-25 billion dirhams ($5.45-6.81 billion), under construction. Deyaar is in negotiations with a Saudi firm to develop a master community in Jeddah, worth 20 billion dirhams, he said. 'We believe Saudi Arabia is a good region ... there are many opportunities (globally), distressed assets are one of them.' 'Turkey is good value. We are looking at JV potentials in Turkey and many countries' in the Middle East and North Africa regions, he added. Giebel said he expected there to be a reduction in the number of developers in Dubai in 2009 as a result of the financial turmoil, adding that consolidation was a good strategy. Deyaar and Union Properties (UPP) denied in October that they were in merger talks but were unable to say if the government was looking into ordering a tie-up. Deyaar's net income in the third quarter rose to 311.95 million dirhams from 200.16 million dirhams a year-earlier and revenue surged almost five-fold to 1.01 billion dirhams.

_________________
UAE IPO list | posting guidelines

[wisk]

In my knowledge, the current going on projects shall be put on hold my march 2009... as i stated under other topic related to Deyaar profit anouncement, the financial baking is not easily available to Deyaar and none of the individual investor in a position to pay the balance amounts...

this situation led all the major players of the industry to ground, let alone Deyaar cant help...

20-25 billion AED with 22 projects giving each project worth to be around 900 million... while i personally know many of theier projects worth by contracts around 200 million AED... let us exagerate the value by 100 % still it shall be 400 million... i dont know how come Deyaar standinf with 22 Billion... 25 is having a difference of 3 billion from 22...

[wisk]

Here again...

As i predicted... todays develoment, deyaar asked all the projects contractors to slowdown the pace of construction giving no time limits...

Many must be, as the one i know, thinking to either stopped as the situation is not clear from Deyaar for the how long they want to slowdown... infact as i said Deyaar has no reach to pool of money as earlier, known to all, putting a stop on projects close to handover...

Any one else have any clue to my above statements?
_________________
sMiLeS AccRoSS MiLeS

[Bimcnorth]

I still expect them to merger with UPP...

Eventually that is.
_________________
Nakheel bonds SOLD at a lovely lovely profit...My current holdings right now FGB, Deutsche Bank, Credit Suisse, Barclays and Aldar.

[tk]

They are trying to make up for their cashflow problems by fleecing people who have bought into some of their developments with ridiculous maintenance fees of AED 20 to 25 per sq ft.