Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Tuesday, June 24, 2008

ETA to raise US$400m for Asia markets

SINGAPORE: Dubai's ETA Star Property Developers plans to raise US$400mil through a fund and Islamic bonds for a drive into Asian markets as diverse as India and Laos, but rising costs are deterring the firm in Turkey and Egypt.

The company, part of privately held ETAAscon Group, is looking to supplement its own funds to develop 120 million sq ft in India, and enter other markets in Asia. It has also just snapped up land in Vietnam and Malaysia.

The new fund will be aimed at Middle East investors, said ETA Star Property's executive director Abid Junaid. “We're talking to institutional investors to raise US$250mil in a first tranche,” Junaid told the Reuters Global Real Estate Summit in Singapore.

Abd Junaid

He added that ETA Star also wanted to raise US$100mil-US$150mil from Islamic bonds, or sukuk: “Syariah-compliant products are very much in demand in the Middle East.”

ETA Star is one of several Middle East firms, including EMAAR Properties and Nakheel, that have joined a wave of foreign investment in Indian property since the country eased rules on inward investment in the construction industry in 2005.

Junaid, who is from the southern Indian city of Chennai, said the firm had bought about a fifth of its land in India before the boom of the last three years, which has seen values in many areas quadruple. ETA Star is building housing, information technology parks and shopping centres in Chennai and Bangalore.

Although internal rates of return for property investment in India are still above 20%, Junaid was worried that soaring construction costs were making property more expensive, and slowing sales of housing.

By Reuters

No comments: