Saudi Arabia’s largest property developer does not rule out having to make some asset sales
Saudi Arabia’s largest property developer, Dar al-Arkan has said it will not need to return to the debt markets to help repay a $1bn sukuk maturing in 2012, but does not rule out having to make some asset sales, Reuters has reported. “We are not planning to raise debt to pay our old debt. We are not even thinking about it,” director general Saud al-Gusaiyer said. “The cash the company can create in 2011 and 2012 is enough to pay our debts, our expenses and capital expenditure. I will generate this cash from renting some assets — and we expect to generate SR300m ($80m) in 2011 — and also selling houses and selling land,” he said. Some 80 per cent of the developer’s assets of about SR23bn ($6.13bn) are land plots in the kingdom.