(Updates with comments from CEO starting third paragraph.)
Oct. 25 (Bloomberg) -- Dubai Investments PJSC, the owner of stakes in more than 40 companies, said third-quarter unaudited profit declined to 30 million dirhams ($8.16 million) on higher provisions.
That compares with a profit of 213.6 million dirhams in the year-earlier period, according to Bloomberg data. The company’s unaudited nine-month net was 270 million dirhams while revenue stood at 2 billion dirhams, Chief Executive Officer Khalid bin Kalban told reporters today in Dubai.
“The results of the company were affected due to provisions and a decline in rental rates and value of properties,” he said. “We are looking positively at 2012 and expect it to be better than 2011.”
Dubai Investments, which operates in businesses including glass production, real estate, financial services and investments, considers its property portfolio the healthiest in terms of income generation, with financial services being the least healthy, he said.
Dubai’s property market had one of the world’s biggest reversals following the global credit crisis three years ago, with home prices slumping 64 percent since they peaked in mid-2008, Deutsche Bank AG estimates.
‘Private Equity Unit’
Dubai Investments plans to increase the capital of its private equity unit Mashari’e to 1 billion dirhams from 600 million dirhams, bin Kalban said. The company is awaiting the approval of all stakeholders and will decide in a month’s time. An initial public offering of Mashari’e is on hold pending an improvement in market conditions.
The increase will be mainly used for acquiring companies and investing in them, he said. The firm already identified three targets and is in the final stages of due diligence to buy companies in Saudi Arabia, the United Arab Emirates and Turkey with a total investment of 250 million dirhams. These operate in retail, oil and gas, and food processing.
Dubai Investments is also looking at growing its manufacturing business by expanding existing operations in the region and setting up in countries such as India.
“We are very keen on India and are discussing at least two projects there,” said bin Kalban. “They could be acquisitions or start ups.”
Prior to the regional unrest and the revolt in Libya that toppled the regime of Muammar Qaddafi and led to his killing, the Dubai-based company won an 80 million euro contract to build the steel structure for Benghazi Airport. There were also agreements to build a residential community over a 40 square kilometer of land. While those plans came to a halt during the unrest talks have restarted, bin Kalban said.
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