Damac set to splurge on jewellers and real estate across Europe

Damac Properties

• Property developer eyes projects in Germany and Copenhagen
• Damac also looking to partner with luxe brands in Asia, US and Europe
• It ‘aims to expand within the fashion industry,’ senior VP tells AGBI

Damac Properties is looking at real estate projects in Europe, particularly Germany and the Danish capital Copenhagen – as well as seeking more partnerships with jewellery brands in Asia, the US and Europe, on the back of its purchase of Swiss jeweller de Grisogono.

“Damac Group is on an expansion curve, expanding across geographies and sectors,” Niall McLoughlin, senior vice president at Damac, told AGBI. “We are expanding in all the aspects of property – residential and commercial luxury and uber-luxury buildings, resorts and hotels, logistics and data centres.”

The Dubai-based developer also has projects in Saudi Arabia, Qatar, Lebanon and Jordan. Its first European project is the Damac Tower Nine Elms in London.

In May it announced its first US development, buying a $120 million beachside plot in Miami. McLoughlin confirmed that Damac was looking at other opportunities in North America, particularly in Canada.

“We are in the UK, the US, Toronto and the Middle East and looking keenly towards expanding to Copenhagen and Germany in Europe subsequently, as well as further expansion in the region,” McLoughlin said.

He added that Europe had been hit hard by rising living costs and the impact of the war in Ukraine. “If there is a ceasefire in the next couple of months, which we hope for, then there could be mild recession,” he warned.

The developer is also expanding into the fashion sector. It bought Italian fashion house Roberto Cavalli in 2019 and acquired the bankrupt Swiss jewellery brand de Grisogono in May. It is now offering de Grisogono-branded luxury apartments next to Safa Park in Dubai.

“The group aims to expand within the fashion industry, with accelerated plans to enhance the brands. We are looking to partner with jewellery companies in Asia, the US and Europe,” McLoughlin said.

Damac is also adding another pillar to its expanding conglomerate. It is planning to spend $1 billion expanding its data centre business, Edgnex, into key global markets and is investing $100 million in its D-Labs subsidiary, which aims to develop digital properties in the metaverse.

Back in Dubai, Damac has just appointed the contractor Pivot to begin main works construction of the Costa Brava cluster in its new Damac Lagoons development, under a contract worth AED618 million ($168 million).

Established in 2002, the Dubai firm has developed around 39,400 homes and has partnered with brands such as the Trump Organization, Versace, Rotana, Paramount Hotels & Resorts and Radisson Hotel Group.

Damac delisted from the Dubai market on February 15, as part of plans to take the developer private. According to the latest results on its website, its total revenues in 2021 were AED3 billion, compared to AED4.7 billion in 2020. Overall net losses in 2021 stood at AED531 million, compared to a net loss of AED646 million the previous year.