Property deals decline on high living cost

Chairman United Defence Clifton Estate Agents Association Raja Mazhar Hussain said the price of open plots and bungalows in the posh areas had fallen by 10-40 per cent and 10-15 per cent, respectively. — File Photo

KARACHI: While falling property prices attracted genuine buyers only the bleak economic scenario and uncertain future irked the investors, who led the rally five years back, estate agents said.
They said the falling property rates did not translate into more sale/purchase deeds over the last three years. Rising cost of living on account of surging food prices, higher utility charges drove even some genuine buyers out of the property market.

‘Debt talks with Dubai firm delayed’

JAKARTA: Indonesia’s PT Bakrieland Development, the Bakrie Group’s property arm, said on Wednesday that talks with a Dubai property firm over a $110 million strategic investment have been postponed again.

Bakrieland in 2008 agreed to sell a 30 per cent stake in its subsidiary, PT Bakrie Swasakti Utama, to Dubai World’s property arm, Limitless Holding, for $110 million but so far, the Dubai company has only paid $37 million.

Debt plan well received: Dubai finance chief

DUBAI: Dubai’s proposed $9.5 billion plan to address its embattled conglomerate Dubai World’s debt crisis has been well received, Dubai’s finance chief was quoted as saying on Friday.

Abdulrahman al Saleh, director general of the Dubai finance department, said in remarks to be aired in a television interview that the initial response was a “preliminary indication that the plan would be accepted”.

Dealmakers meet to sort $26bn Dubai World debt

DUBAI: Bankers gathered in Dubai on Wednesday to hammer out a $26 billion debt plan with state-owned Dubai World as a repayment deadline loomed, adding to pressure on the glitzy emirate to settle the conglomerate’s debt.

Core creditors representing 97 banks met to finalise months of talks on how Dubai World can restructure the debt, about a quarter of Dubai’s estimated total debt of $101 billion. Markets anticipated a deal favourable to lenders, with the cost of insuring Dubai sovereign debt falling and bond prices rising for Dubai World unit Nakheel, the property firm that built a giant island replica of the Earth.

Nakheel woes may prompt better bankruptcy laws

DUBAI: The trillion dollar Islamic finance industry is looking beyond the troubles of Dubai developer Nakheel at possible reforms that could help draw more interest from Western players.
Dubai World rocked the global markets in November when it asked for a delay in repaying $26 billion in debt. A $4.1 billion sukuk, or Islamic bond, from its unit Nakheel staved off default thanks to a bailout from Abu Dhabi.

But Nakheel put a negative spotlight on Islamic finance as global markets began to wonder if the Islamic structure of the deal was to blame.