Sharjah developer Arada is considering opportunities in the US as part of its global expansion plans, says its vice chairman Prince Khaled bin Alwaleed.
“The US really does look good to us, the housing market over there, the huge need for housing,” Prince Khaled told Abu Dhabi Finance Week on Tuesday.
Arada will seek to develop property projects in Miami, Austin, and Nashville in Tennessee as the “southern area is exciting”, he said. He did not disclose the timeline or the total investment the company is targeting.
Arada, a joint venture between KBW Investments, a company controlled by Prince Khaled, and Sharjah-based Basma Group, has been expanding in markets including the UK and Australia.
This week, the company said it would buy the 99-101 Newington Causeway site, comprising two vacant buildings, in the south London borough of Southwark. The company plans to develop homes and amenities at the former Salvation Army headquarters, it said, without revealing the value of the deal.
Last month, the company announced an investment up to £325 million ($427.7 million) to acquire an 80 per cent stake in the £2.5 billion Thameside West waterfront development in London's Royal Docks, its second acquisition in the market after buying 75 per cent of Regal, a London mixed-used developer, in September.
“London's fundamentals haven't changed, they have just got cheaper and this is what we see right now,” Prince Khaled said.
“There’s overregulation, there's the high interest rates, there's a few issues here and there, but end of the day, when everybody is leaving, this is the opportunity for people like us to actually see there's a real opportunity.”
There is also shortage of housing supply in the market, which makes it attractive for developers to launch new projects, he added.
“I am really excited about the growth in London that's going to happen [in] the next five to seven years. And we're here for the long term, we are not here for a quick turnaround and leave. We are there for the next 10 to 15 years.”
The company is also planning to launch projects in Saudi Arabia in the first quarter of next year and is in talks with “five or six quite large entities”, Prince Khaled said.
“We see a huge need for housing in Saudi Arabia. There may be two million houses that need to be built there, and the local developers are not going to be able to fulfil it.”
Last year, Arada announced its expansion plans in Australia by opening an office in Sydney. It plans to develop Dh6 billion ($1.6 billion) worth of projects in the country's most populous city.
