Saeed Bin Eid Al Ghafli, Head of the Founder’s Committee at Surouh Real Estate announced that the Planning and Economy Department in Abu Dhabi has given its approval for the establishment of Surouh Real Estate, to be established with a capital of AED 2.5 billion, paving the way for a sizeable Initial Public Offering (IPO) at a later stage.
Al Ghafli said “The establishment of this company comes under the direction and wise leadership of H H Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE, Supreme Commander of the UAE Armed Forces and of H H General Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of ِAbu Dhabi, Deputy Supreme Commander of the UAE Armed Forces, to establish new developmental projects that will provide a boost to the local economy. These projects will contribute in the development of the real estate sectors and help to cope with the massive all round development that the country has witnessed in all aspects”.
Al Ghafli noted that the founders of Surouh Real Estate will soon invest AED 1.125 billion, or 45% of Surouh’s capital. The remaining 55%, which is equivalent to AED 1.375 billion, will be offered to the public next month at a nominal price of AED1 per share in addition to 1 fils per share in offering costs.
He remarked “Surouh’s first real estate project is its involvement in the prestigious Al Reem (Abu Shuoom) island. Surouh plans to turn this section of the island into one of the landmark developments in the capital”.
The development will serve as an extension of Abu Dhabi, the capital of the UAE and will provide the ideal platform for all sectors of the economy by leveraging the proximity to the centre of the capital. Moreover the project will also provide for a mixture of luxurious, high quality villas and apartments, first class infrastructure, hotels, hospitals, clinics, schools, mosques, and commercial, residential and recreational property.
Al Ghafli went on to add that the project is vital to help meet the growing demand for luxury residential units and high quality office space within the capital. “The economy has grown dramatically and demand for real estate has outrun supply. Developments like these are essential to keep pace with the economic growth that the UAE is experiencing” he said.
This flagship project will be followed by others which Surouh currently has in the pipeline, which will contribute to transforming Abu Dhabi and raise the company’s profile as it bids to become the country’s premier developer. Al Ghafli added “Surouh will help add a new and much needed district to the city of Abu Dhabi while providing a vehicle for real estate investments."
“It has the opportunity to participate in one of the most prestigious developments in the capital. This is a large scale real estate project which will set the standards for such projects in the region and will work to attract direct investments and FDI in the real estate sector” noted Al Ghafli.
The National Investor and First Gulf Bank have been appointed as the lead managers for the IPO.
