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Luxury property developer Damac is acquiring a half billion dollar plot of land from Dubailand.
The 55,000,000 square foot land in Dubai is being purchased through subsidiary Front Line Investment Co for $513 million, the developer announced earlier this week.
Damac is funding the acquisition from the proceeds of a $650 million sukuk it sold in the second quarter.
Damac said in the statement, ''the acquisition is in line with the company's long-term strategy of replenishing its land bank with land in prime Dubai locations to ensure a consistent pipeline of future sales inventory.''
The developer declined to comment further on the acquisition when contacted by Gulf News.
Last week, Damac announced it is offering to convert Damac Real Estate Development Limited (DRED) London-listed Global Depository Receipts (GDRs) for shares that would be listed on the Dubai Financial Market (DFM).
Damac, with a market capitalisation of about $3.5 billion, is expected to list up to 15 per cent of the company on Dubai's main bourse.
In May, Damac said a continued economic recovery in its core market, Dubai, saw net profits in the first quarter rise 79 per cent to $210 million.
Source: Staff Report, gulfnews.com