IslamicFinance.de

Dubai real estate developer Deyaar will launch a series of funds of up to AED 1 bn to buy distressed debt, including its own, as it looks to boost returns for shareholders, reports John Irish on Reuters.

Its first AED 500 million fund is about 60-70 % subscribed by a mix of local and overseas investors and would buy back properties on which investors have defaulted from Deyaar's own portfolio according to the CEO, Giebel.

Deyaar will rent out the units to provide cash flow for the company before selling them once the Dubai property market recovers.

Business 24/7 reported on 6 January that the real estate developer said that Deyaar's contracts will be Shariah-compliant and they are going to deal exclusively with Islamic banks. Deyaar is an affiliate of Dubai Islamic Bank. Markus Giebel, the CEO of Deyaar has written a column for Business 24/7.