Dubai based Luxury Developer DAMAC Properties signs Property Accord With Russian Prominvest
Luxury developer DAMAC Properties will invest $300 million in Prominvest, the investment arm of Russian Technologies. The agreement is to create a joint company to manage foreign direct investment in infrastructure and the real estate sector and was signed in the Black Sea city of Sochi in the presence of Vladimir Putin, Prime Minister of Russia.
DAMAC will invest in real estate projects, including the facilities for the 2014 Winter Olympic Games in the Black Sea resort city of Sochi.
“DAMAC Properties as the largest private luxury developer in the Middle East, is well capitalised and focused on expansion in the CIS countries. This should be seen as a vote of confidence not only in the Russian economy, but also a sign that the UAE economy is picking up” said Hussain Sajwani, Chairman of DAMAC Properties.
The deal follows a shift in Russia’s new foreign policy doctrine, which calls for domestic companies to expand cooperation with the Arab world to foster pragmatic, business-oriented relations to lure investment and expertise that can help modernize the economy.
“DAMAC has a proven track record of developing and delivering luxury property across the Arab world, and now we are now taking that wealth of experience and expertise to Russia” said Mr Sajwani. ‘’We have always been interested in investing in the CIS countries and this joint venture presented us an opportunity to enter into a market with great potential and a strong regulatory and transparency framework. I commended the Russian authorities for all their assistance in establishing this joint venture''
State Corporation Russian Technologies is the biggest industrial holding in Russia with a monopoly on strategic markets. With over 700 subsidiaries Russian Technologies is involved in every aspect of the day-to-day business in Russia. Prominvest, the investment arm of Russian Technologies, plays an active role in the establishment and management of assets and, in future, holdings of the corporation. It is responsible for implementation of its parent company’s investment policy.
“DAMAC is confident that aligning our expertise and know-how in property development, with Russia’s biggest industrial holding will meet Russia’s need for quality property developments in the short to medium term, and potentially lead to further investment opportunities in the future” concluded Sajwani.
The Russian shareholding of the joint venture with DAMAC will be 51% of shares. The fund will invest in development projects, with preference given to residential construction projects, the first being in Moscow.
DAMAC Properties is making good progress on all its current projects, having delivered over 3,600 units so far and will be delivering more than 3,971 units across the gulf region over the next 12 months.