Investment case

DAMAC Real Estate Development Limited (‘DRED’, ‘The Company’) management believes the Company offers investors the opportunity to participate in the future growth of a leading luxury property developer in Dubai and the Middle East.

As of 30 June 2023, the Company has a proven track record of delivery through all market cycles, having delivered 46,000 completed units since launching its first residential development in 2002. As of June 30, 2023 the Company has 33,000 units at various stages of planning and progress across the Middle East.

DAMAC Real Estate Development Limited intends for investors to benefit from attractive returns, driven by strong financial results and enhanced margins resulting from the Company’s full development phase business model.

Investment highlights:

  1. Internationally recognised brand

  2. Leading growth of the premium Dubai property market and beyond

  3. Proven business model with strong margins and attractive returns

  4. Advanced in-house design, sales and project execution as well as service and hospitality capabilities

  5. Future growth secured by existing development pipeline and ability to source new opportunities

  6. Highly experienced management team and a committed founding shareholder

Internationally recognised brand and leading property developer in Dubai

DRED’s strong reputation and internationally recognised brand is based on its track record of delivering high quality, luxury developments, such as its numerous hotel apartment projects in the Burj area of Dubai, the award-winning Park Towers, Ocean Heights, Marina Terrace in Dubai as well as luxury co-branded properties such as Safa One de Grisogono, Cavalli Tower, DAMAC Bay by Cavalli and more.

The Company believes that its strong position and internationally recognised brand translates into higher sales volumes, which also enables it to achieve higher profit margins than many of its competitors typically achieve.

Leading growth in the premium segment of the Dubai property market

Dubai continues to exhibit strong economic growth across a number of key sectors. Alongside the emirate’s strong growth prospects, the region is also seeing an increased influx of expatriates and more foreign investment, a rising population and growth in tourism, further driving demand for prime residential property.

DAMAC Real Estate Development Limited is therefore well positioned to continue to play a leading role in the further development of the region’s real estate market as the sector witnesses a cyclical recovery on the backр of rising demand, renewed investor confidence and improved economic fundamentals.

Proven business model with strong profit margin generation, quick cash-churn and aim for rapid monetisation

A strong commitment to maximise profit margins and returns on equity shapes DAMAC Real Estate Development Limited planning and decision-making processes. The Company believes it achieves higher profit margins and high returns on equity through:

  1. Prudent cash-driven business

  2. Successful project cost management

  3. Land acquisitions at good value

  4. Prudent capital structure with focus on debt management

  5. Customer-focused product design and positioning, enables premium pricing

  6. Sophisticated and proactive sales and marketing teams

Advanced in-house design, sales, execution, service and hospitality capabilities

Key to DRED’s financial success is its ability to generate strong sales on units in a project from launch. The Company has a number of dedicated in-house teams, including Sales and Marketing, Design, Project Management, Customer Relationship Management and Acquisitions, which are instrumental in every step of the design, construction and sales process.

Future growth secured by existing development pipeline and ability to source new opportunities

DAMAC Real Estate Development Limited has a high-quality, well-located pipeline of in-progress developments, which will drive near-term growth, both within the UAE and internationally. Its expansion into branded homes has enhanced the Company’s future growth, in collaborations with internationally recognised brands such as Cavalli, Versace, De Grisogono, Zuhair Murad, FENDI Casa, the Trump Organization and Paramount Hotels & Resorts.

Conservative financial policy

Part of DAMAC Real Estate Development Limited conservative business model, of paying the majority of construction costs from instalment payments received on sales of units, allows it to operate at low levels of leverage as well as mitigating risk to the Company’s pipeline. Its conservative and flexible capital structure, alongside management’s agility, also enables it to respond quickly to changes in the economic cycle.

Highly experienced management team and a committed shareholder

The Company is led by a management team of directors and senior managers with significant experience in the real estate construction industry, as well as in marketing, human resource management, company administration, corporate finance, information technology, legal and accounting. The Board draws its knowledge and skills from both local and international experience.