Gulf Property April 2015 by Gulf Property

Gulf Property

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The regionâ&#x20AC;&#x2122;s premier monthly for lifestyle, real estate and construction

Khalid bin Kalban Dubai Investments

Dubai Investments goes global

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VOL. 7, NO. 7 APRIL 2015

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EXCLUSIVE INTERVIEW Khalid bin Kalban, Dubai Investments Sanjeev Birari, Mantri Developers Anant Golyan, Westar Properties

Affordable Homes Dubai pushes developers to build

wasl vita residences are now leasing. Residences for those who seek superior living in the heart of Jumeira.

With a total of 64 apartments and a shopping plaza on the ground level, wasl vita expertly fuses an urban lifestyle within classic, California inspired architecture. Its prominent location on Al Wasl Road connects you to many fantastic amenities and facilities – meaning you will be spoilt for choice mere minutes from your door. • 1-BR, 2-BR & 3-BR apartments with rooftop gardens • Amenities include swimming pool, separate male & female gym, kids’ play area and gated security • Carrefour market & boutique retail To lease, visit our on-site customer service centre, log on to waslvita.wasl.ae or call 800wasl (9275)

TOLL FREE IN UAE: 800 - DANUBE (326823)

Email: info@aldanube.com

Website: www.aldanube.com

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20th21stApr i l 2015, Dubai

Leader si nAr c hi t ec t ur eEvent sSer i esI nt er nat i onalSpeaker s CHRI SJ OHNSON RI BA, ARBManagi ngPr i nci pal , Gensl er

MOHAMEDALASSAM Ex ecut i v eChai r man, DewanAr chi t ect s

SI MONMOON CEO, At k i nsMi ddl eEast

HARRYDOWNI E CEO, RMJM I nt er nat i onal

STEPHENJ OHNSON Pr esi dent , CannonDesi gnI nt er nat i onal

CHARLESDALLUGE Pr esi dent , DLRGr oup

LEONARDCASTRO Seni orVi cePr esi dent , Busi nessLeader-Bui l di ngs, St ant ec

I ANAPSLEY Mai nBoar dDi r ect or , Br oadwayMal y an

STEPHENREDFERN Pr esi dent , Kur y ł owi cz&Associ at es

SHAWNBASLER Pr i nci pal andEx ecut i v eDi r ect or , Per k i ns East man

J AMI LJ ADALLAH MDandPr i nci pal , Nat i onal Engi neer i ngBur eau

MI CHAELFOWLER Managi ngDi r ect orMi ddl eEast , Aedas

STEVENCHARLTON Pr i ni ci pal Managi ngDi r ect or , Per k i ns+Wi l l MENA

BRI ANJ OHNSON Pr i nci pal andManagi ngPar t ner , Godwi nAust enJohnson

ROBERTTROUP Regi onal Managi ngDi r ect or , dwp Mi ddl eEast

YAHYAJ AN Vi cePr esi dent&Desi gnDi r ect or , NORR

VARKKIPALLATHUCHERI L I nt er i m Dean, Amer i can Uni v er si t yofShar j ah

MUFADHALABBASSHKARA Seni orVi cePr esi dent&Boar dMember , Zuhai rFay ezPar t ner shi p

DANI ELHAJ J AR Seni orVi cePr esi dentandManagi ng Pr i nci pal , HOK

RALFSTEI NHAUER VPHospi t al i t yMENA, RSPAr chi t ect s

SI MONTHOMAS Vi cePr esi dent , Mi ddl eEastandNor t hAf r i ca, HKS

SI MONFRASER MDMi ddl eEastandAsi a, Hopk i ns Ar chi t ect s

MARKPOWELLKYFFI N HeadofAr chi t ect ur e, AbuDhabi Tour i sm &Cul t ur eAut hor i t y

PEDRAM RAD Managi ngDi r ect or , U+AAr chi t ect s

PROF.SHAMSELDI ENNAGA Founder , Di r ect or , NAGAAr chi t ect s, Desi gner s&Pl anner s

PHI LLI PJ ONES Pr i nci pal , Managi ngDi r ect or–Mi ddl e EastandNor t hAf r i ca, B+HAr chi t ect s

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EDITORIAL

Affordable housing could give Dubai’s realty the right boost

New regulations to develop affordable homes could bring back middle income group back to Dubai as market remains under pressure ffordable housing could give Dubai’s real estate the necessary boost and rescue the current market from depression, analysts say. A new move by Dubai Municipality that could make affordable housing mandatory in future developments is a very timely and welcome move and this could help plug a major development hole in the emirate’s real estate market that has ignored affordable homes segment, while racing on to upgrade the level of luxury and comfort – by neglecting the silent majority of the country’s population.

However, the move needs a careful planning and thoughts. Private sector developers will try to find a way to flunk the rules as their development plans are mostly driven by profits, and not social service whereas the government has a social responsibility to ensure proper housing for residents. This is where public-private partnership will be needed to develop large-scale affordable homes. Dubai Municipality has already taken an initiative to develop a new master-planned community – Desert Rose – project that will have a combination of both the luxury and affordable homes. While the luxury homes will give it added revenue and profit that could be invested in building affordable homes while the public facilities, retail and shopping malls will fetch regular income to manage the new urban development and make it sustainable. This is a great example and Dubai Municipality has decided to lead by example before asking other developers to follow suit.

The UAE government has also pledged a massive investment in Egypt that will help UAE developers to lend their development expertise in redeveloping the Egyptian economy and in building new townships, mega projects. This is another example how a government creates opportunities for the private sector by leveraging its wealth, investment and relationship to help local companies grow international. Dubai Investments is a clear example for all. After successfully developing Dubai Investment Park, it is developing similar projects in Saudi Arabia, Tunisia, Morocco and Angola – again, inspired by the government’s vision to support the global economy. Meanwhile, the latest initiative by Dubai Electricity and Water Authority (DEWA) in installing solar panels on rooftops will go a long way in reducing the emirate’s carbon footprint. It’s a small step towards a large objective. DEWA has urged local residents to apply for solar panels which will help change the way we consume energy in this country. We commend DEWA for such a game-changing initiative. Other utilities should also follow suit.

– T. Akhtar

COVERSTORY

CONTENTS

FOCUSDEVELOPMENT

UAE developers to cash in on Egypt’s development boom as country secures massive investment 45 Danube plans to launch third project as revenues soar 50

EXECUTIVEOPINION

Dev Maitra/Indigo Properties 16 Abdallah Massaad/RAK Ceramics 17

COVERSTORY

INDIAHOUSE

Mantri Developers eye IT professionals

GOGREEN

Affordable housing to become a reality in Dubai 18 Dubai Investment charts growth for the next decades to become a global developer of investment parks 26

NEWSANALYSIS

Real estate in Sharjah picks up as developers embrace a liberal investment climate in the emirate 34

INTERVIEW

COMPANYNEWS

Westar sells Dh270 million worth of properties 60 Dewa to install solar panels on rooftops 64 Rail connections to help Dubai Hills Estate to lure investors 66 Nshama rolls out townhouses for Dh1 million 68

GULFTOURISM

Tourism projects to boost Gulf economies 74

REGULARFEATURES Realty Bytes Spotlight

GULF PROPERTY

The region’s premier monthly for lifestyle, real estate, construction and building materials

EDITORIAL

Editor T. Akhtar editor@panasian1.com Senior Reporter Paromita Dey p.dey@panasian1.com Senior Reporter/Sub-Editor Indrajit Sen i.sen@panasian1.com

SALES AND DISTRIBUTION Ruby Leah r.leah@panasian1.com

PUBLISHER

T. Akhtar Pan Asian Media MFZ LLC

10 80

LICENCE

Licenced by RAK Media City, authorised by the National Media Council. Gulf Property is a publication of Pan Asian Media MFZ-LLC EDITORIAL AND COMMERCIAL ADDRESS Pan Asian Media MFZ-LLC P.O. Box No.: 39865. Dubai, UAE Tel : (9714) 2281021 Fax : (9714) 2281051 E-mail gulfproperty@ymail.com editor@panasian1.com Web www.gulfpropertyme.com

CIRCULATION 20,000 copies

Gulf Property 9

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REALTYBYTES

Azizi promotes projects in malls in Dubai

AE property developer Azizi Developments said, it will be promoting its projects in Ibn Battuta Mall, Dubai and Marina Mall in Abu Dhabi, as part of the company’s strategy aimed at promoting its latest developments by reaching out to a wider audience, including residents and tourists. The stands in the malls will carry the details in English and Arabic, as well as an informative flythrough presentation on Azizi’s four residential buildings currently under construction and for sale in Al Furjan. Azizi Iris, the firm’s fifth project has been sold out, and the remaining four’s sales have reached 70 per cent, the developer claims. g

Facilities Management expo in Dubai

M EXPO’, the only dedicated Facilities Management exhibition in the Middle East, will take place in Dubai in May. The expo ‘will address industry needs and provide visitors with the tools to capitalize on the upcoming business prospects’, a press release from the organisers, reads. Over 7,500 visitors are expected to attend the exhibition taking place from May 18 to 20, 2015 at the Dubai World Trade Centre (DWTC). g

Gulf Property

Al Zorah invests over Dh500mn in infrastructure development

l Zorah Development Company said it has invested over Dh500 million in infrastructure till date for its flagship project Al Zorah in Ajman. With the initial stages of infrastructure development already complete, the new contract worth Dh115 million to AIMS Group covers the rest of the road and utility networks to support all Phase 1 components of the project, the company said in a state-

ment. The work is set for completion in Q4 2015. Al Zorah is a JV between the Government of Ajman and Lebanese developer Solidere International. The first phase of the Dh2 billion project is expected to be delivered later this year. The key components include a 113 key beach resort operated by Oberoi, a 192 key beach resort operated by Lux, an 18-hole Golf Course by Nicklaus Design, 42 residential villas on the

golf course, serviced residential apartments, and The Pavilion, Al Zorah’s sales centre. The Phase 1 works included the design, earthworks, work on four marinas that can accommodate over 200 boats, the 18-hole championship golf course, highway linking Sheikh Mohammed bin Zayed Road to Al Zorah, the road and utility network, bridge, and water edge protection across 3.5 km of waterfront. g

Aldar’s Al Raha Beach: New social hub

l Raha Beach development, the 5.2 million square metre stretch developed by Abu Dhabibased Aldar Properties, is fast gaining popularity as the capital’s social hub. With the spring season on, multiple cultural, environmental and family-oriented activities were planned from late February, with people across all ages and nationalities gathering at the natural beachfront to attend them. g

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Trump PRVT mansions launched by Damac

amac Properties has recently launched its ‘Jewel in the Crown’ luxury villas and mansions at its Akoya by Damac master development in Dubai, the developer has announced. ‘Trump PRVT – a limited collection of exclusive homes set within the Trump Estates in Akoya, a private, gated island community – have been brought to the market following the strong response from the initial launch of Trump mansions and villas’, Damac claims in its statement. A limited number of villas and mansions are being made available with a starting price of Dh6.5 million. The first residents will move into Akoya by Damac in the next 12 months, with the full

project scheduled for completion by 2018. Akoya by Damac is a 42 million square feet luxury

Construction of Damac’s 2 key projects in Riyadh steady

ubai-based luxury real estate developer Damac Properties said, its Damac Esclusiva and Damac Tower by Paramount projects in Saudi Arabian capital Riyadh have now reached their final heights at 32 and 35 floors respectively. Blockwork on each of the towers have also reached the top floors,

lifestyle community, located off Umm Sequim Road in Dubailand, an entertainment complex in Dubai. g a statement from the developer said. Damac claims that the 100 private serviced-apartments, whose interiors are designed by well-known Italian firm FENDI Casa, is a unique feature in Damac Esclusiva. Similarly, Damac Tower by Paramount ‘offers branded-serviced apartments with the feeling and ambience inspired by the Paramount Pictures movies over the past century’, the press statement reads. The two projects are expected to finish next year, Damac maintains. g

REALTYBYTES

New Aster hospital opens in Dubai

bdul Rahman Mohammed Al Owais, the UAE Minister of Health, inaugurated Aster Hospital-Mankhool in the presence of Dr Azad Moopen, Chairman and MD of Aster DM Healthcare, government officials and other dignitaries. The 100-bed hospital will cater to the growing demand for super-speciality care by providing treatment of international standards to the residents. Aster DM Healthcare, a healthcare provider in the Middle East and India, built the largest Aster Hospital in the UAE, in line with the UAE’s plan to make the country a quality healthcare destination. g

Al Rostamani Pegel secures contract

eyaar has awarded the main construction contract to Al Rostamani Pegel (ARP) for its mixed-use twin tower complex The Atria located in Business Bay, the developer said in a statement. Following the enabling works, Al Rostamani Pegel will mobilise the principal contractor. All main works on the project are set to be completed by the first half of 2017, the company said. The Atria marks Deyaar’s foray into the hospitality sector. g Gulf Property 11

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REALTYBYTES

Senaat to set up Dh1.1bn steel pipe plant

enaat, an Abu Dhabi government-owned industrial conglomerate, has recently entered into a JV with a consortium made of two of Japan’s leading companies in the steel sector, JFE Steel Corporation and Marubeni-Itochu Steel Inc (MISI), to establish Al Gharbia Pipe Company. A statement from the company said that the new Dh1.1 billion worth company will manufacture and sell large diameter high quality sour grade steel pipes to cater to the construction and energy sectors in the region. g

SPF Realty launches property app

PF Realty has launched Millennium Square mobile app, which will enable customers to experience a 3D walk-through of the project on their smartphones. The app is available on Android devices and will be available soon on iOS devices. The app, with 3D augmented features and virtual reality mode, would provide buyers a chance to explore each room and space inside the villa before buying. The app features 3D renderings and the full details of Millennium SquareMeydan Dubai. g

Gulf Property

Ascott to increase hotel portfolio in GCC by 2016

he Ascott Limited, the Singaporebased hotelier, said it would more than triple the number of units it currently operates in the GCC in the next two years, a growth of more than 40 per cent’. GCC countries are seeing an influx of additional expatriates, due to the fastpaced development of their economies and the massive infrastructure projects under development. The hospitality sector in GCC continues to grow, with an increasing

demand for international branded serviced apartments, the company said in the press release. Vincent Miccolis, Area General Manager of the Ascott said in the press statement that his company will open Ascott Sari, Ascott Tahlia and Citadines Al Salamah in Jeddah, Saudi Arabia and Somerset Panorama in Muscat, Oman. Next year Ascott Olaya, Riyadh, Saudi Arabia and Somerset Corniche Jeddah, Ascott Culture Village in Dubai and Somerset

Maslak in Istanbul, Turkey will be operational. The company will add a total of 1,406 keys to their portfolio by 2016. The Ascott Limited currently manages Ascott Park Place Dubai, Ascott Doha, Somerset West Bay Doha in Qatar and Somerset Al Fateh in Bahrain. On the other hand, Ascott has also appointed Shashi Shetty as the Director of Sales and Marketing for the GCC region, the hotelier announced through a separate statement. g

akheel has delivered 90 new villas at Jumeirah Village Circle (JVC) in Dubai, with construction complete. The 4bedroom villas each cover 3,655 square feet and feature indoor and outdoor living space, including an expansive roof terrace. The Jumeirah Village Circle Villas project, launched in December 2013 and sold

for a combined value of Dh275 million, consists of 90 homes built in a circular pattern at the heart of Nakheel’s JVC master community. Landscaping work is currently underway. The JVC Villas project is among a range of Nakheelconstructed developments, including 615 villas and townhouses, which were delivered in 2013, and the one million square feet Cir-

cle Mall, a new retail hub due for completion in 2017. Nakheel is also bringing 28 landscaped parks to JVC, as part of its commitment to enhance the community. Features include amenities, such as plants indigenous to the UAE, jogging tracks and children’s play areas. Two parks are complete, with landscaping and design work underway on the rest. g

90 homes delivered in JVC: Nakheel

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Tanmiyat Global inks partnership with Amlak

anmiyat Global, a property developer, has signed an agreement with Amlak Finance to provide mortgage services for its Living Legends development. Amlak Finance will offer up to 50 per cent of the mortgage before handover with the option to re-finance up to 75 per cent upon completion, in line with UAE central bank regulations. Amlak will offer 25 year mortgages for locals, residents and non-residents at competitive rates. The partnership between Tanmiyat Global and Amlak Finance will also cover property finance services for Exchange Tower, located in Dubai’s Business Bay. Mohammed Bin Odah, CEO of Tanmiyat Global, said, “We are delighted to partner with Amlak Finance, starting with our Living Legends development, which will handover its first 150 villas in Q2 this year. This partnership

enables us to provide clients with solutions to ensure that their investment in any Tanmiyat Global development is lucrative and profitable.” Adnan Al Awadhi, Chief Commercial Officer of Amlak Finance, said, “Amlak is pleased be partnering with Tanmiyat Global. This collaboration will add value to the overall real estate sector of Dubai and we look forward to

Tanmiyat constructing golf course

anmiyat Global said, its contractor Harradine Golf has begun construction on the golf course in its flagship ‘Living Legends’ development, and expects it to open by Q1 2016. The golf course will form the centrepiece of the development’s cosmopolitan

providing prospective investors with innovative financial solutions.” Phase 1 of the Living Legends, a mixed-use development across 14.44 million square feet, is more than 92 per cent complete, as certified by Dubai’s Real Estate Regulatory Authority (RERA). The project is set to hand over its first 150 villas in the Q2 2015. g community, which comprises of 500 villas and 12 apartment towers, along with a community club house, shopping mall, boutique hotel, schools and clinics, a press statement by Tanmiyat says. Tanmiyat also announced the addition of the UAE’s first Peter Harradine Golf Academy, which will feature a nine-hole pitch and putt, putting the green and driving range. g

REALTYBYTES

DWF opens office in Dubai to ‘support’ clients

ritish law firm DWF said it will open an office in Dubai to support its clients across the construction, energy, insurance and transport sectors in the Middle East and North Africa (MENA) region. This will be the firm’s first international office. DWF is initially setting up base in a 1,000 square feet office in the Dubai International Finance Centre (DIFC), the company revealed. DWF will launch its Dubai office with a team of four, including two partners, who will advise on contentious and noncontentious construction matters, professional indemnity and non-marine insurance work. g

Kansai Paint opens store in Mercato Mall

ansai Paint, has announced the opening of another retail centre in Dubai. The opening of the kiosk at Mercato Mall, Jumeirah is marked by a special offer where customers will receive a 10 per cent discount on their booking and free design consultation services for a limited period of time. Kansai Paint’s retail centers are presently located in places like Deira, Dubai Festival City (DFC), Satwa and Umm Suqeim in Dubai. g Gulf Property 13

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REALTYBYTES

Jumeirah Group to open second hotel in Turkey

umeirah Group, the Dubai-based luxury hotel company, has signed a management agreement with Targets Investment Turizm Isletmeleri AS to operate a luxury hotel in Bodrum on Turkey’s Aegean coast. The hotel formerly known as the Golden Savoy will be operated under the Jumeirah brand as Jumeirah Bodrum Palace Hotel, Turkey with an official opening scheduled for May 1, 2015, the company announced. The luxury hotel consists of 135 rooms, including suites, villas and a six-bedroom Palace. g

Saadiyat Villas Phase 3 ready by June

bu Dhabi’s Tourism Development and Investment Company (TDIC) recently announced that the construction of the third phase of the Saadiyat Beach Villas, which comprises 77 luxurious residences, is on track for completion in June 2015. All the blockwork for the project has been laid and completed by the beginning of 2015. This has been achieved with over 2.5 million incident-free man hours logged since work began end of 2013, the company told the media. g

Gulf Property

Al Hamra hires Chinese contractor for Falcon Island

as Al Khaimahbased developer Al Hamra Real Estate Development said, it has awarded a Dh150 million construction contract for its flagship residential project Falcon Island to China Harbour Engineering Company. Al Hamra separately announced that it has begun construction for the Falcon Island project after an official groundbreaking cere-

mony in March. The developer has also launched the phase 2 of the project offplan, and claims that it is ‘selling out fast’. The phase 1 of the project is already sold out, according to Al Hamra. Falcon Island will consist of 150 luxury units, ranging from 5 bedroom villas to 8 bedroom mansions, which have been designed using European architecture and interiors. The project will

also comprise luxury beachfront homes, which will be designed and furnished by brands like Fendi Casa, Bentley Home, Kenzo Maison, and Alberto Vignatelli’s Heritage Collection. A central canal will split the island into two, and is one of a number of the natural island’s signature features that will be developed as part of the marine and infrastructure contract, the property developer said. g

Dh2.5bn

value of Al Khiran resort project that Tamdeen Group is building in Kuwait

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Drake & Scull gets Dh395m Jewel of the Creek contract

egional engineering contractors Habtoor Leighton Specon (HLS) and Drake & Scull Engineering (DSE), the subsidiary of Drake & Scull International PJSC, have announced their agreement to jointly deliver the Dh395 million Mechanical, Electrical and Plumbing (MEP) contract on the ‘Jewel of the Creek Package 8’ complex. HLS has been

Indigo launches ‘Indigo Ville 2’; townhouses

ubai-based property developer Indigo Properties has announced through a press release the completion of the final phase of Indigo Ville 2, one of its flagship projects. Indigo Ville is a housing community, comprising townhouse clusters namely Indigo Ville 1 to Indigo Ville

nominated by the project’s developer Dubai International Real Estate (DIRE) as the MEP contractor of the real estate project, which has in turn agreed with DSE to execute the works in a JV. The package forms a part of the Dh4 billion ‘Jewel of the Creek’ project being developed by DIRE on the Creek, DSE announced through a press statement. Package 8 consists of 5

hospitality buildings ranging between 15 and 19 floors, featuring a hotel and serviced apartments buildings, a ballroom and an attached café; a marina, including four foot bridges and one vehicular bridge; and hard and soft landscaping works. Construction work on Jewel of the Creek Package 8 complex has commenced and the completion is targeted for Q2, 2017. g

8, and these are located at eight sites of Jumeirah Village Circle in New Dubai. Indigo Properties is now handing over Indigo Ville 2 which comprises 14 townhouses measuring 56,700 square feet. Whereas the first five clusters with 68 townhouses of over 292,829 square feet built-up-area were finished in 2012-13, Indigo Ville’s final three clusters, consisting of 49 townhouse units spread over a built-up-area of 182,034 square feet, shall be completed in the next six months.

Townhouses in Indigo Ville are now available for sale to all nationalities with a starting price of Dh2.5 million, the company statement said. Besides, the developer mentioned it is hiring a professional facilities management company for maintenance services. “Located in master development Jumeirah Village, this project consists of four bedroom townhouses being offered on a freehold basis,” said Dev Maitra, CEO of the Indigo Properties, while announcing the completion of Indigo Ville 2 project. g

REALTYBYTES

1,150 residential units fasttracked in DIP

ubai Investments Park [DIP], the integrated commercial, industrial and residential community in Middle East and a subsidiary of Dubai Investments, has announced that over 1,150 residential units, which include townhouses, duplex, 3, 2 and 1-bedroom and studio apartments, are currently under construction within the development. The multi-phased projects are expected to be completed by 2018 and are being developed by individual developers and investors, with DIP providing the infrastructure, a press release from the company stated. g

SDIC exhibits show villas at new Hidd Al Saadiyat

bu Dhabi-based real estate development company Saadiyat Development and Investment Company (SDIC), in March unveiled model villas at its new project Hidd Al Saadiyat, a statement from the company announced. The project, set to be completed by 2016, is built on 1.5 million square metres of waterfront land on the northeastern part of Saadiyat Island, will be home to 4,000 people with 453 villas and 15 low-rise apartments, SDIC claims. g Gulf Property 15

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OPINION

What does luxury really mean in Dubai?

DEV MAITRA

Chief Executive Officer Indigo Properties

pen up a newspaper or drive down Sheikh Zayed Road, you are sure to be inundated with adverts screaming upcoming ‘luxurious’ developments. However what constitutes the term ‘luxury’. In a cosmopolitan city such as Dubai, where over 200 nationalities co-exist peacefully, luxury can mean various things for people depending on their ethnicity, upbringing or even their socio-economic status. Dubai-based property developers Indigo Properties helps shed light on this ambiguous term by defining luxury in terms of qualities high end property buyers in Dubai look for. With the influx of luxury properties being unveiled and launched in Dubai, Indigo Properties lists out clear defined factors to look into when deciding to purchase a property termed ‘Luxury’ to ensure the benchmark is met.

Gulf Property

Uniqueness

High-end buyers look for expert architecture coupled with tropical and verdant landscaping that stand out from other property developments. Gated communities with beautifully designed villas offer privacy while also being exclusive.

Luxury is in the design

A designer pool, large windows that allow for natural sunlight, state of the art equipped kitchen, smart home technology, panoramic glass elevators, spacious bedrooms with en suit bathrooms, infinity baths and baths fitted with a Jacuzzi or sauna are all luxurious ele-

ments that high end buyers look for in their homes. Houses that let in natural light and are surrounded by beautiful views provide a Zen-like atmosphere, improve mood and also increase resale value. Striated stone front fascia detailing, timber roof cornices and pergolas, textured wall paint and rustic colored roof tiles all add that extra distinct element that high end property buyers look for in order for their homes to stand out. Natural elements like water, sand and stone also play a part in influencing their purchase.

Spacious homes

The range of 3,800 square

feet to 9,800 square feet offers for a comfortable living. Full height windows with sliding doors which lead on to terraces and balconies help in ensuring fresh air flow around the house. High ceilings create wide airy spaces and natural stone flooring can be calming. These minimalist design elements are popular with high end property buyers because it offsets all the stresses in the world. Long hallways, stairwells, awkward columns are space wasters and are usually a huge turn off for these buyers. I hope these factors will bring about some clarity, making you more confident with your ultimate purchase decision. g

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Lifestyle experience is key to win hearts

pple, Nike, Mercedes and Chanel are some of the biggest global brands in the world, but what do they all have in common? They have all evolved over time to become ‘Lifestyle Brands’ designed to appeal to consumers by encouraging them to aspire to or embrace a particular lifestyle. So, how does this translate into ceramics manufacturing? Is selling a lifestyle experience key to winning customers and building brand loyalty in our sector? On a practical level, our homes are designed to put a roof over our heads and to keep us safe. However, our choice of home, the location and the way we choose to furnish and decorate it, is most definitely related to our lifestyle experiences and how we want others to perceive us. Just as consumers’ needs and desires change in relation to technology, clothing or sports apparel, their tastes will also change when it comes to property and home products. Depending on the latest fashion and trends, keeping up with customers’ needs is crucial to the success of any company. RAK Ceramics is constantly changing to keep up with market demands. No longer considered to be just functional or practical, ceramics’ have evolved from being a product used in bathrooms and kitchens to being a high fashion, design-led lifestyle commodity, used throughout the home. At RAK Ceramics we have be-

come a one stop shop offering complete lifestyle solutions rather than simply a manufacturer of tiles, toilets and taps. Our customers can find everything they need under one roof. Increasingly property developers are teaming up with designers and brands to add aspirational appeal to their projects and sell a particular lifestyle. Whether it is a partnership with a world class golfer or the inclusion of a particular bathroom brand or range of kitchen appliances, it all contributes to the lifestyle experience and added brand value for the consumer. Building materials manufacturers now talk about offering ‘total solutions’ or ‘complete lifestyle solutions’ and their vision statements include sections about ‘improving customer lifestyles’. At RAK Ceramics we are taking things to the next level in terms of product design and lifestyle experience. Launching a first of its kind Arab-Italian partnership with globally renowned Italian design house Pininfarina, we are collaborating for the first time to design Quadro a RAK-Pininfarina luxury bathware collection. Pininfarina, designers of Ferrari, BMW and Maserati are a leading Italian design house specialising in the design, product and process engineering of luxury automobiles as well as architecture and interior design projects. This new luxury collection will provide customers with a sophisticated contemporary bathware suite combining design and innovation with

superior functionality and quality through a successful co-branding venture which encompasses the best of both brands. We have seen a significant rise in demand for cobranded designer products that transform essentials into luxury, especially in the bathware segment. Our customers seek comfort and convenience alongside fashion and sleek designs in their bathroom furniture and Quadro is expected to exceed their expectations. Eco-friendly products and green manufacturing also play a part. Consumers are becoming increasingly aware of how their individual lifestyle choices can affect the environment. At RAK Ceramics we offer alternatives to natural wood and stone which helps to protect the environment. Our Wood Art collection provides the look and feel of real wood but without harming trees. We are always looking at ways we can reduce our emissions and reduce our power consumption and have registered significant improvements in our energy use, with lowest power consumption to date at 3.95 Kwhr/sqm. About 60 per cent of our water is recycled and reused and 80 per cent of our waste heat is recovered and reused from our kilns. If a manufacturer can limit their impact on the environment through improving production processes, or offer an alternative to environmentally damaging products, then customers feel they are contributing to the green agenda

OPINION

ABDALLAH MASSAAD

Chief Executive Officer RAK Ceramics

and helping to preserve the planet for future generations. Digitalisation means that manufacturers are now able to offer customers online tools and apps to help them with their purchasing decisions. RAK Smart Design is an app that was developed to help customers choose from an extensive product range. Whether it be architects, designers or individual customers, RAK Smart Design enables consumers to visualise the products and visualise their lifestyle experience online before making final purchasing decisions. A strong indication of whether or not a brand has evolved to become a lifestyle experience, is when it successfully extends beyond its original product category. In the beginning, Apple made computers and Nike made running shoes. By repositioning themselves in the market, these companies’ are now globally renowned iconic lifestyle brands . Similarly, RAK Ceramics began as a tile and sanitaryware manufacturer and is evolving to become a global industry leader in complete ceramics solutions offering the largest range of ceramics’ products in the industry. g Gulf Property

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Affordable housing to become a reality

Paromita Dey Senior Reporter

he Dubai Government is undertaking initiatives to expand affordable housing for the emirate’s struggling middle income groups, that if materialises, will help increase domestic consumption as well as help accelerate the emirate’s economic growth, currently growing at 4.5 per cent. It will not only bring back the residents Dubai has lost to its neighbouring emirates

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— namely Sharjah and Ajman — but also help attract more people. Housing is what creates and defines cities. Affordable housing is what makes successful and scalable cities. As such, affordable housing is essential to the continued success, growth and competitiveness of all MENA cities. Rakesh Mohan, Deputy Governor of the Reserve Bank of India, suggested in 2007, future national competitiveness and economic success will depend on the comparative efficiency of cities. “Because housing is where

jobs go to sleep at night, the quantity, quality, availability and affordability of housing becomes a key component in national economic competitiveness,” said a report by Ernst and Young. “Despite many MENA nations’ efforts so far, the supply of affordable housing is falling far short of demand, and demand is rising.” Dubai’s roller-coaster journey in real estate since the opening of the freehold market to foreigners in 2002 has focussed on luxury and super luxury properties – ignoring the emirate’s silent majority — the middle income groups

— who have been battered by rent-related inflation and being forced to migrate to Sharjah, putting additional pressure on the infrastructure. Between 2005-2008, a large middle income group had left Dubai to live in Sharjah and Ajman – putting pressure on the Dubai-Sharjah highways. During that period, Dubai had become unaffordable to many – who either moved elsewhere or sent families back home. Although affordable housing is not new to the emirate, where government had built a large number of low-cost

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International City, Dubai

Discovery Gardens, Dubai

homes in Karama, Satwa, Deira, Ghusais, Abu Hail, Hor Al Anz and some other parts of the city – primarily to cater to the government employees who could not afford rental homes with their income. The government had then spent its oil proceeds widely for the welfare of the people. So, the government quarters helped them to retain their families, provide schooling for the children – way back in the 1970s and 1980s. In those days Dubai’s real estate market was driven mainly by the public sector and a few UAE national busi-

nessmen who developed apartments and villas for the rental market. The government housing was driven by three entities — The Real Estate Department of Dubai Government, Development Board, part of Dubai Municipality and the Ruler’s Court. All these three entities were later brought under a single entity — Dubai Real Estate Corporation (DREC) whose assets are being managed by its subsidiary wasl Asset Management Group and its new properties are developed by Wasl Properties. However, the real estate boom from 2002-2008 had

totally overlooked the middle income group — as this was driven by the private sector who usually are not sympathetic to the social causes and issues. Over the last two decades, Dubai’s only initiatives on affordable housing has been confined to just a few clusters — Muhaisnah and Gusais, Samari Residences by Wasl Properties, Al Khail Gate developed by Dubai Properties, International City and Discovery Gardens by Nakheel. As the real estate market took an upturn in 2013-14, the middle income group

again started to feel the pinch and a new wave or migration took place towards Sharjah. This might have prompted the government to step in and take charge. “The widening gap between the demand and supply of affordable housing in the GCC countries is pressing the governments in the region to have a closer look at the issue and implement steps to address the problem of housing the region’s low and middle income group on an immediate basis,” according to a report by Kuwait Finance House Markaz. Ernst & Young report said, Gulf Property

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FOCUS Karama, Dubai

“Unless MENA’s public and private sector leaders change their strategies, the growing crisis of affordable housing will become a major long-term problem that leads to widespread social dissatisfaction. “Affordable housing has always been part of Gulf nations’ housing policy statements. ‘A good home for every citizen’ has been part of the national social contracts and until roughly fifteen years ago that was a promise governments could keep. In the last decade and a half, however, governments have been falling behind: the systems in place, which used to be effective, cannot keep up with growing and diversifying economies and the long-predicted boom in urban population. “There is an increasingly

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marked imbalance between rising wealth creation, on the one hand, and delivery of new homes and desirable living environment on the other. It is time for governments to make step changes in their delivery models, and in particular, to shift into a more outsourced, public private partnership oriented approach on both the supply side (new homes) and the demand side (financing products).” As a result, Dubai Municipality has recently stepped up to encourage developers to build affordable homes. Affordable housing delivery requires government contribution, but government cannot tackle the crisis on their own. Both supply-side and demand-side strategies can mobilise the private sector and hence make govern-

ment resources go further, the report says. “In fact, most public sector initiatives to date have been on the supply side – the direct creation of affordable homes – but increasingly, forward thinkers in MENA are looking for demand-side innovations, which can not only help citizens find ways to secure affordable housing, but also reduce public sector administration and costs,” Ernst & Young said in the report. Jones Lang LaSalle’s report estimates that there remains a combined shortage of more than 3.5 million affordable dwellings across the major markets within MENA and that demand will continue to outstrip supply for at least the next five years. There are no doubts on whether Dubai is an expen-

sive place to live – it surely is. While certain sections of the society can afford to cough up huge amounts to buy a house in expensive locations, many low income households and young people find it difficult to maintain a decent style living. For the many who cannot afford to buy a house, the next option that comes to mind is to rent a place within a walkable distance from work. But in Dubai, the rental market is no better, rents have increased manifold and gone beyond the reach of many. So what is the solution? The only solution that comes to mind is affordable housing that is making a wave in the housing affordability crisis. According to recent media reports, middle-income residents can hope to have a

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Affordable Housing

ffordable housing is housing deemed affordable to those with a median household income as rated by country, state (province), region or municipality by a recognised Housing Affordability Index. Affordable housing, also known as low-cost housing – is usually built by government departments to house their staff so that they are protected from house rent-related inflationary pressure. However, private sectors are also encouraged to build affordable homes under public-private partnerships where the government offers free or cheap land parcels for developers to build homes for the middle-income groups. g house of their own in Dubai as the Dubai Municipality has plans to introduce mandatory affordable housing quotas for all new residential developments. This proposal, if converted into a law, will make it compulsory for the developers to dedicate 15-20 per cent of their new residential developments towards affordable housing. Sounds like a relief for the low to middle income people who are, otherwise booted out of the property market due to increasing rents. This move has been welcomed by many, since there has been a huge demand for affordable housing in the UAE and the prospects for those with monthly incomes between Dh5, 000 to Dh15, 000 being able to provide a decent way of living, will un-

Annual apartment lease rates in Dubai

High-End

Studio

77,000

2 Bed

165,000

1 Bed 3 Bed 4 Bed

Average

Mid-Range Studio 1 Bed 2 Bed 3 Bed 4 Bed

Low-End

Average Studio 1 Bed 2 Bed 3 Bed

Average

112,500

195,000 225,000 154,900 57,500 83,000

110, 000

140, 000 170, 000 112,100 32,500 45,000 57,500 76,000 52,750 Source: Cluttons

*All figures in AED *High-end: Burj District, Dubai Marina (Emaar), Palm Jumeirah, DIFC *Mid-range: Business Bay, The Views, Greens, Dubai Marina (non-Emaar), JLT, Green Community - Dubai Investments Park *Low-end:International City, IMPZ, Discovery Gardens, Jumeirah Village Circle, Jumeirah Village Triangle, Sports City, Dubailand Apartments

doubtedly have a positive effect on the economy. According to international real estate consultants, Cluttons, this proposal by Dubai Municipality is long overdue and is expected to bring a wide range of benefits to the emirate, while driving further maturity in the market.

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How feasible is affordable housing?

According to Cluttons, the idea of affordable housing is not a new concept and it has served cities such as London well, where developers are li-

“There are similar regulations in the UK, where it is mandatory for developers to dedicate a certain amount of the development towards affordable housing. If it (the proposal) gets passed, developers will be obliged to comply. I mean something like this has never been done before.”

– Faisal Durrani, International Research and Business Development Manager, Cluttons

able to provide affordable housing for developments starting with as little as ten units. In particular, it has aided in the creation of diverse communities, while allowing people from all financial backgrounds to live alongside one another. Commenting on the same, Faisal Durrani, Cluttons’ inGulf Property

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Dubai Studio City

“The widening gap between the demand and supply of affordable housing in the GCC countries is pressing the governments in the region to have a closer look at the issue and implement steps to address the problem of housing the region’s low and middle income group on an immediate basis...” – Kuwait Finance House Marka ternational research and business development manager, said, “There are similar regulations in the UK, where it is mandatory for developers to dedicate a certain amount of the development towards affordable housing. Now it depends on the developers whether they want to dedicate the lower floors or they want to build separate buildings on the same site. I don’t know what the proposal in Dubai says, but if it gets passed, developers will be obliged to comply. It is hard to say though, I mean something like this have never been done before.” But there are exceptions to the law. The Abu Dhabi Urban Planning Council (UPC) has had a similar regulation in place for a number of years, but could only generate very few ‘affordable’ housing units. “There are two basic reasons why develop-

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ers do not want to develop this affordable housing, firstly it produces a lower financial return than they can earn from developing higher end housing and secondly, developers do not want to downgrade the quality of their projects by incorporating an element of lower cost housing. These issues mean the success of the DM proposal will lie in its effective implementation,” mentioned Craig Plumb, Head of Research for JLL MENA. Exorbitant land costs can always prove to be a hindrance to this law, with developers losing out on returns that they can earn from developing luxury properties. Explaining the trend, Mat Green, Head of Research & Consultancy UAE, CBRE Middle East, said, “If you are a developer and you have bought land in Downtown Dubai or Palm

Jumeirah, to force those developers to develop affordable housing in those locations will be difficult since they are high-end and equally high-priced. If you are enforced to build something which is going to give you negative returns, then, according to me, it can have reverse effects on the market.” So what is the solution to this? In London, developers have been permitted to build off-site affordable housing, with land costs being cited as the primary driver for this. Green added, “What the Municipality can do is encourage partnerships with developers whereby since they are developing high-end property, they can also build in other locations where they can actually manage to have affordable housing. May be the government can provide the developers with land to

facilitate the development or they can identify places where these things can actually materialise.” The need to provide more housing for middle and lower income workers is one of the greatest challenges facing the real estate industry in Dubai at the present time. Global property consultant JLL undertook a survey of markets across the Middle East in 2011 which revealed an overall shortage of more than 3.5 million units. While the majority of this shortage is in countries such as Egypt and Saudi Arabia, the need to provide more affordable housing is a common feature across the entire region.

Why not redevelopment?

Dubai has already expanded its wings towards affordable

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housing with several developers claiming to fill in this gap with their new projects. Dubai Municipality is finalising a tender for design details for a Dh30 billion mixed-use development, Desert Rose, a sustainable city covering 4,000 hectares of land and offering affordable living for expatriates. Danube, the building materials company, entered the Dubai real estate market with their two projects, Dreamz and Glitz, offering unique payment plans to their buyers. Nshama, a private developer, announced their maiden project, Town Square, where they are offering townhouses for a million dirhams. A number of the major developers have also recognised the demand in the traditional areas close to the Creek and are planning projects in these areas.

One of the most effective solution is re-development of the old areas and provide cost-effective living to the people who have been living in cramped up accommodations for decades. Green agrees, “If we look at some of the older areas, say around Bur Dubai, Deira or Karama, where we have all the old properties, it can be easily re-developed. Also the available land near DWC, or the projects which haven’t been master-planned yet. We have already seen the focus on places like Discovery Gardens or International City, these locations have kind of filled the gap. So I think there should be more partnerships with the government to encourage private developers to enter into this field.” But the major problems with re-developing the old areas are the density of ex-

isting buildings and the fragmented nature of land ownership, which makes the amalgamation of large sites difficult and time consuming. “There are two major things that the Dubai government could do to assist with the development of projects in the older areas of the city, the first is in respect of land amalgamation, the Municipality could assist developers amalgamate sites for new residential projects or could release some of their own sites for re-development as the Municipality and other branches of the Dubai government are major land owners within the older parts of the city,” Plumb says. “The second and probably the most effective thing the government could do to encourage the development of new housing in areas such as Deira and Bur Dubai, would be to allow freehold

“If developers are required to build affordable housing without any subsidies or incentives, they will likely build where land is the least expensive, primarily in the outskirts of Dubai. Mid-low and low income households need public transportation, yet the vast majority of these outer locations with lower land costs have insufficient public transportation. If this proposal is approved then there would be a need for an oversight committee or other body clustering these individually developed affordable housing projects around future public transportation nodes.” – Jesse Downs, Managing Director, Phidar Advisory Gulf Property

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Dubai Municipality’s Desert Rose development will have Luxury villas as well as affordable homes with common facilities for all

land ownership in these areas to non Emirates,” Plumb explained. According to Cluttons also, Dubai is clearly not short of affordable neighbourhoods. Karama and Satwa are two key stand out areas that have evolved organically at the edges of the Deira-Bur Dubai and Jumeirah districts, respectively. During the course of expansion of any city, affordable districts often tend to spring up on the fringes of the main commercial districts and this has been the case with Dubai as well. “The city doesn’t want to create lower income neighbourhoods that are segregated or separated from the main hub. It creates a bit of social discomfort, it’s better if we have integrated housing all in the same locations that will make it a healthier community. There have been some attempts to

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kick of urban re-development in Bur Dubai, Deira but there aren’t many freehold projects in those areas, and these places are fully built up,” pointed out Durrani. The government also has to take care of the public transport if they are encouraging developers to concentrate on affordable housing, since most of the mid-low and low income households need public transportation for their daily commute. “If developers are required to build affordable housing without any subsidies or incentives, they will likely build where land is the least expensive, primarily in the outskirts of Dubai. Mid-low and low income households need public transportation, yet the vast majority of these outer locations with lower land costs have insufficient public transportation. Affordable housing and public transportation

need to be planned in tandem. If this proposal is approved then there would be a need for an oversight committee or other body clustering these individually developed affordable housing projects around future public transportation nodes,” mentioned Jesse Downs, Managing Director, Phidar Advisory.

Will Dubai get back its residents?

Hopefully, but it will take its own time. Many of the lower income employees in Dubai currently live in Sharjah and the Northern Emirates and endure a lengthy commute to work in Dubai. This decision is clearly not through choice but financial necessity. If made law, the proposal will not only provide more eco-

nomic stability, but also reduce traffic jams. Though there is no shortage of properties in Dubai, the executive working class faces a housing bottleneck as Dubai expands in area and population and also in prices and rents. “If Dubai were to offer more mid and low income housing, there is no doubt that many people would choose to relocate closer to work. This would not only reduce the traffic congestion but would increase the quality of life for those whose commuting time was reduced,” agreed Plumb. Many would agree that it is not a new trend, when people are priced out in Dubai, they tend to move to Sharjah,and if the same trend follows in Sharjah, then people tend to move up north to the other emirates. The process is slow and gradual, as and when there is a slowdown in

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the rents and prices of the accommodations, people will definitely start moving in. “Moving back to Dubai from other emirates will happen naturally as and when there will be some kind of slowdown in the rents. The proposal, if passed, will not be sufficient enough to make Dubai affordable enough to many, but we can expect to see some people move back slowly,” Green mentioned. The changes will be definitely positive, since the residential market in Dubai, now in the second half of the current property cycle, has witnessed values stabilise following the growth recorded in 2013 and the first half of 2014. “Possibly, the whole idea of people migrating isn’t a new trend, we have seen it before. I think as soon as people think that they are priced out in the Dubai market, they head to

Sharjah and other emirates, the trend will continue. So it's hard to say whether it will draw people back in or not. But having said that, having communities and developments that cater to all budgets, will definitely make Dubai a positive market,” Durrani explained. Along with that, the government will also have to take care of the peripheral needs of the mid-low to low income households which includes affordable education, healthcare to mention a few. Unless it is an integrated effort by all the verticals, people will always tend to move to other emirates. Downs explained, “Keeping mid-low to low income households in Dubai is linked to overall affordability, not just housing. Even if affordable housing is built, unless there is affordable education, healthcare in relative proximity, Dubai res-

ident workers and their families will continue to commute to other emirates. Having said that, of course, addressing affordability for this sector is the logical first step because housing is often the biggest household expenditure for a family.” Dubai has always focused on high-end luxury residential developments over the years, attracting end-users and investors from all over the world. But with the Expo 2020 around the corner, demand for genuine affordable housing in the emirate has pumped up, which has also given rise to an irreplaceable shortage. As Dubai, being a highly competitive market, in the long run, only those will be successful who aims to bridge the gap for affordable housing and tap the available opportunities in the market. g

“Moving back to Dubai from other emirates like Sharjah and Ajman will happen naturally as and when there will be some kind of slowdown in the rents. The proposal, if passed, will not be sufficient enough to make Dubai affordable enough to many, but we can expect to see some people move back slowly.”

– Mat Green, Head of Research and Consultancy UAE, CBRE Middle East

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COVERSTORY Dubai Investments has built strong credentials over the last two decades, underpinned by proven partnerships, smart acquisitions, profitable exits and a robust commitment to value creation. Dubai Investments will continue its build its expertise across both established and new sectors as part of its transition into the next phase of growth trajectory.

â&#x20AC;&#x201C; Khalid Bin Kalban Managing Director and Chief Executive Dubai Investments

Dubai Investments goes international 26

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COVERSTORY

Real estate represents 67 per cent of Dubai Investment’s total assets of Dh14.52 billion

Gulf Property Exclusive

ubai Investments, a major investor in industries which is celebrating its 20th year, is going global by undertaking major investment projects in Saudi Arabia, Tunisia, Morocco and Angola, a top official said, while reaffirming its commitments to invest in key assets. Khalid Kalban, Dubai Investment’s Managing Director and Chief Executive Officer,said, his organisation will invest between 6-7 billion in the next five years, while float one of its subsidiaries every year from 2016 onwards. The organisation, established in 1995 with Dh650 million capital, is a public joint stock company with has

25,000 shareholders. It’s shares are traded on the Dubai Financial Market. The company has issued Dh4 billion dividends and bonus shares. It has a net worth of Dh10 billion. The company, which created more than 70 companies and subsidiaries, has Dh14.52 billion worth of assets. It has, through its investments, created more than 15,000 jobs. Currently, its shareholders’ equity jumped 700 per cent to Dh10.1 billion. The company was created to invest in manufacturing and primary industries and thus increase the share of the manufacturing sector’s contribution to the emirate’s gross domestic product (GDP). “When we started our journey way back in 1995, manufacturing sector’s contribution to the emirate’s GDP was less than 3 per cent. Today manufacturing

and industrial sector contributes 14 per cent to the GDP – which has a major shift in economy and we have played our role in it,” Khalid bin Kalban told the media at a recent gathering. “Today as we look back 20 years of our achievements, we see the creation of a number of industries to our credit. However, looking ahead, we are planning to take our success story to the international market whoever wants to benefit from our expertise.” Since its creation 20 years ago, Dubai Investments has created a number of industrial conglomerates in Dubai that has contributed to the emirate’s economy greatly. In 1996, Dubai Investments invested in Marmum Dairy Farm followed by investments in Emirates Building Systems and Emirates Glass in 1997. In 1998, it created Dubai

investment Park, a major industrial park with residential and commercial facilities – making it one of the largest integrated industrial communities in the Middle East in 2,300 hectares of land at Jebel Ali. The company went public in 2000 and was listed on Dubai Financial Market. Later, it created Dubai Investments Real Estate Company – that has been overseeing its property development and management arm. In 2014, Dubai Investment created its global arm – Dubai Investments International to shift focus on developing investment parks in different parts of the world. “We have signed a joint venture with a Saudi Arabian company to develop Riyadh Investment Park where work is going to start within the next few months,” Kalban said. “We have also been approached by government of Gulf Property

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COVERSTORY As a Group, we have a strong focus on real estate sector and strategically promising businesses across sectors in the existing and new geographical locations across the region. We are also eyeing the acquisition of a financial entity to strengthen our asset mix

– Khalid Bin Kalban Managing Director and Chief Executive Dubai Investments

Tunisia, Morocco and Angola to develop similar investment parks in these countries and we are preparing for these projects in the next few years.” Riyadh Investment Park, which will be unveiled soon, will spread across approximately 11 million square metres and strategically located at the periphery of the Saudi capital. To be developed in two phases, the Investment Park will encompass warehouses, commercial showrooms, labour amenities, offices and other logistics facilities similar to Dubai Investments Park [DIP], the

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largest integrated commercial, industrial and residential community in the region. A new entity will be entrusted with the development and management of the Riyadh Investment Park project, as well as other future projects in the pipeline across Saudi Arabia. Dubai Investments will own 25% stake in this new entity. Dubai Investments recently reported a 63 per cent jump in net profit to Dh1.34 billion in 2014, up from Dh822.32 million net profit achieved in 2013. Dubai Investments Board of Directors has recom-

mended 12 per cent cash dividend and 6 per cent in bonus shares to the shareholders. The net operating profit for 2014 was Dh1.81 billion, an increase of 42 per cent compared to Dh1.27 billion achieved in the previous year. Total assets as on December 31, 2014 surged to Dh14.43 billion as against Dh12.62 billion in 2013. Total revenue for the year was Dh3.19 billion, as against Dh2.84 billion in 2013. The Earning Per Share [EPS] also surged to Dh0.35, compared to Dh0.22 in 2013. The net profit in the

fourth quarter of 2014 was Dh346.79 million, an increase of 18.8 per cent compared to Dh291.74 million in the fourth quarter of 2013. Last year, Dubai Investments successfully issued a 5-year Sukuk of $300 million (Dh1.1 billion), divested controlling interest in Globalpharma LLC, and divested Phase 8 of the Dubai Investment Park Development Company’s warehouse project. “We are currently evaluating various investment proposals and are in advanced stages of negotiations for couple of investments, which

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DIP attracts 3,500 companies

ubai Investments Park (DIP), whollyowned by Dubai Investments PJSC, has continued to play a pivotal role in UAE’s industrial and manufacturing boom by attracting over 3,500 companies across a wide array of sectors over the last 17 years. “DIP is today a powerhouse in manufacturing, offering a range of medium to light industries across aluminium, steel manufacturing, chemicals, pharmaceuticals, textiles, plastics, oil and gas, construction, building materials and contracting sectors,” the company said. A total of approximately 59.5 million square feet of space within the 2,300hectare DIP are readymade facilities, which includes

are likely to be finalised in Q1 2015. Our sustained focus on delivering value, coupled with upbeat sentiment across various sectors of the UAE economy, has helped us move aggressively forward. We expect this growth momentum to continue in 2015.” Dubai Investments also announced the launch of various key projects such as Mirdif Hills, Fujairah Business Centre, and Green Community Phase III during the year. Kalban added: “As a Group, we have a strong focus on real estate sector and strategically promising businesses across sectors in the existing and new geographical locations across the region. We are also eyeing the acquisition of a financial entity to strengthen our asset mix.” Real estate represents Dh8 billion or 53 per cent of

3,000-plus warehousing and industrial units besides staff accommodation. These encompass a number of factories, dealing in medium to light manufacturing, which contribute a significant share to UAE’s GDP. Given the success and huge demand for DIP as a thriving industrial hub, the park has attracted a number of multinationals and international brands, including Danzas, Aujan Industries, Transmed, M.H. Al Shaya, Dubai Refreshments Company (Pepsi), Permasteelisa Gartner ME LLC, Mapei-Innovative Building Solutions, Larsen and Toubro (L&T), Weatherford Oil Tool among others. A number of companies have set up their regional headquarters within DIP. Omar Al Mesmar, General Manager of DIP, said: “DIP was conceptualised with a mission to bring new businesses and industries in a Dubai Investments’ total assets base of Dh14.52 billion while investment represents Dh3 billion or 24 per cent and the rest belongs to contracting and manufacturing. Meanwhile, Dubai Investments Park [DIP], a subsidiary of Dubai Investments, said, over 1,150 residential units, which include townhouses, duplex, three, two and single-bedroom and studio apartments, are currently under construction within the development. This surge in new residential units comes amidst a growing demand within DIP in view of its proximity to the Expo 2020 site. The multiphased projects are expected to be completed by 2018 and are being developed by individual real estate developers and investors, with DIP providing the requisite infrastructure. DIP has spent over Dh4 bil-

comprehensively-planned business complex. Today, we are proud to be home to over 3,500 companies from various sectors – industrial to manufacturing to trading who have set up base in the park. In fact, DIP serves as a regional gateway for a number of companies. “The number of industrial units and factories within DIP is steadily growing and we have also witnessed increased demand for our warehouses. @Our proximity to the Expo 2020 site is also fuelling the demand for manufacturing space as well as accommodation and we are geared to sustain this growth in the coming years.” DIP is today a booming city-within-a-city, accentuated by over 30 office buildings, 25 showrooms, five schools, three hotels, besides 292 residential and staff accommodation buildings. g lion in the last 17 years building and elevating its infrastructure to world-class standards. As of date, DIP offers 140 kilometres of internal road network, highly-sustainable power and water supply with DEWA, well-connected telecommunications network meeting the latest global standards, district cooling services across the entire business park, and 130 kilometres of fresh water network supply for irrigation and fire-fighting. The infrastructural growth within DIP continues to transform the business park into a self-contained city-within-acity. This complements DIP’s strategic location and proximity to Jebel Ali Port and Al Maktoum International Airport, business districts and arterial roads making it one of the most sought-after developments for tenants and

COVERSTORY At A Glance

Dh14.5 billion value of Dubai Investments’ assets as on Dec. 31, 2014

Dh10 billion net worth of Dubai Investments PJSC

Dh6-7 billion investment planned within the next five years

15,000

jobs created by Dubai Investments and its subsidiaries in 20 years

3,500

companies have invested in Dubai Investment Park

Dh10 billion

investment planned by Dubai Investments in the real estate sector

Dh1.34 billion net profits of Dubai Investments in 2014

Dh1.5 billion

investment planned by Dubai Investments in Saudi Arabia

Dh3.19 billion revenue of Dubai Investments in 2014

90,000

people live, work and commute across Dubai Investment Park

Dh1.81 billion

net operating profit of Dubai Investments in 2014 Gulf Property

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Dubai Investment Park has become a benchmark for investment parks as governments of Morocco and Tunisia now wants Dubai Investments to create similar ventures in those countries. Dubai Investments will soon start works in Saudi Arabia and Angola to develop similar projects

businesses. Since its inception, DIP has attracted over 4,500 companies across a wide array of sectors, offering a range of medium to light industries across aluminium, steel, chemicals, pharmaceuticals, textiles, plastics, oil & gas, construction, building materials and contracting sectors. The new units will complement the 10,000-plus operational residential units within DIP. A mix of townhouses as well as smaller units and designed to the best international standards in terms of facilities and space, the units currently houses over 20,000 residents. Once the new units are completed, the total population in DIP residential

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units is expected to cross 45,000 residents. Omar Al Mesmar, General Manager of DIP, said: “The UAE real estate sector is witnessing a buoyant trend and investors have started accelerating the various construction projects across Dubai and other Emirates. Dubai Investments Park is fast reinforcing its identity as the preferred residential community, and its proximity to the Expo 2020 site makes it a favoured option for both investors and end-users. The magnitude of residential development within DIP is testimony to the surge in demand for quality residential units in this part of Dubai.”

The sustained growth within DIP continues to transform the development into a self-contained city within a city – reinforcing its identity as the most sought-after destination for tenants and businesses looking for good returns on investments, added Mr Al Mesmar. Green Community, one of the most sought-after residential projects within DIP, recently announced the commencement of construction works on Phase 3 of its master-development. This will see the addition of 227 units, of which 210 are townhouses, apart from duplex apartments, two-bedroom apartments and a dedicated retail space spread across

1.48 million square feet. The enabling works are scheduled to be completed in Q1 2015. In July 2014, Aristocrat Star announced the launch of its Royal Estates project, a 2.3 million square feet gated community consisting of 700 units – including apartments, townhouses, club houses, retail spaces and office complex. The first phase, comprising 400 units, is scheduled to be delivered in 2016. The range of other residential units on offer within DIP includes The Palisades, RITAJ, Dunes Village, Dubai Lagoons and EWAN Residences. Equipped with world-class facilities, each is

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DI plans Dh10b of real estate projects

ubai Investments PJSC plans Dh10 billion ($2.7 billion) of real estate projects in the next five years as it seeks to benefit from resurgent property demand. Developments include Mirdif Hills, a Dh2.5 billion project in Dubai that will include 1,500 homes, a 230room hotel, shops and 200,000 square-feet of office space, Chief Executive Officer Khalid Bin Kalban said. Real estate is a major focus of the investment conglomerate which is building assets for Dubai The company’s Dubai Investment Real Estate Co. unit will start tendering for the development in the next two months, he said. The company is also building a Dh7 billion project planned in Dubai Investment Park. The 13 million square-feet village with homes, shops, offices and

a self-contained community development with its own unique characteristics and features. The facilities within DIP includes a wide array of educational institutions, retail outlets, healthcare facilities, hotels, offices, mosques, recreational and leisure amenities. DIP is one of the largest integrated residential and business communities in the Middle East and offers state-of-the-art facilities and infrastructure. With an integral population of 90,000 people, about 25,000 people driving in an out every day for work, six schools catering to over 5,700 students, 225 plots accommodating over 65,000

labourers, DIP is a citywithin-a-city. Khalid bin Kalban, led the company and brought it where it is today, spoke to Gulf Property in an interview on the sidelines of the briefing and touched upon a large number of issues. Excerpts:

Gulf Property: You have created a strong legacy of successfully creating industries and a large industrial base in Dubai Investment Park. What’s in store for the future? Khalid Bin Kalban: Since we have developed expertise in creating businesses, industries and one of the best performing investment parks, we want to now share our

hotels, may require the company to raise cash either through loans. “We are talking to a major investor to come on board and help,” he said. “They will either pay us rental or take over the project within a certain number of years. “We are discussing seriously the option of rent to own with them.” Work started on a Dh400 million business park in Fujairah, Bin Kalban said. The park will include a 220-room hotel, 200,000 square feet of offices, 150,000 square feet of retail space and some apartments. It’s set for completion within two and half years, he said. Al Taif Investment, a 60 per cent-owned unit of Dubai Investments and developer of the business park, secured a Dh300 million loan from Al-Hilal Bank PJSC for the project. Dubai Investments is also in talks with owners of several unfinished buildings within Dubai Investment Park to take over and complete the stalled construction, he said. g expertise to the rest of the world. We want to go international and become a truly global entity and help other economies like the way we contributed to Dubai and UAE economy. Dubai Investments has built strong credentials over the last two decades, underpinned by proven partnerships, smart acquisitions, profitable exits and a robust commitment to value creation. Dubai Investments will continue its build its expertise across both established and new sectors as part of its transition into the next phase of growth trajectory. Dubai Investments has identified some sectors and promising growth markets

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which provide the stimulus to invest and generate high returns. The company plans to continue its international expansion plans and leverage its business models across newer markets, particularly in Middle East, Africa and Asia.

Could you kindly specify some of these projects? We have recently formed a 50:50 joint venture partnership with RED House SAL – a Saudi-Lebanese Joint Stock Company with expertise in real estate investments across MENA region, to manage projects and developments in the Kingdom of Saudi Arabia. The launch of the new company comes amidst burgeoning growth trends in the Saudi Arabia real estate sector, which is valued at more than SR1.3 trillion, and is expected to reach SR1.5 trillion in the next few years. The new joint venture will begin operations with a project in Riyadh while other significant projects are in the pipeline. The project Riyadh Investment Park, which will be unveiled soon, will spread across approximately 11 million square metres and strategically located at the periphery of the Saudi capital. To be developed in two phases, Riyadh Investment Park will encompass warehouses, commercial showrooms, labour amenities, offices and other logistics facilities similar to DIP. A new entity will be entrusted with the development and management of the Riyadh Investment Park project, as well as other future projects in the pipeline across Saudi Arabia. Dubai Investments will own 25 per cent stake in this new entity. Saudi Arabia is a strategic market in our growth plans, Gulf Property

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and offers unmatched growth potential â&#x20AC;&#x201C; especially in the real estate sector. We have set new benchmarks with our experience in developing and managing different real estate projects and happy to take this expertise to Saudi Arabia with this new entity. We will leverage our core competencies in integrated mega-project developments, through our projects in KSA. We expect to be on the ground within three months from now. We have also been approached by the governments of Morocco, Tunisia and Angola. Our team will

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visit these countries in the next few months to select the locations of the investment parks and look into other issues such as the laws, connectivity, proximity to sea or air logistics base as well as the overall development challenges in these countries. In Angola, our project will spread across 45-50 square kilometres and will be developed in phases. We are creating management companies to oversee the development and management of these projects.

As an investment com-

pany mandated to create industries and businesses to add value to the overall economy, your organisation has done well in creating a benchmark for others. However, in the next few years, how much investment are you planning to undertake? We are looking at between Dh6-Dh7 billion investment in the next five years. These could be in creating new industries, real estate projects and creating the new investment parks in other parts of the world. We are developing a luxury hotel in Fujairah with an in-

vestment of Dh400 million. This is a 23-storeyed complex that is being constructed. We have invested SR180 million to acquire 25 per cent equity inâ&#x20AC;&#x2C6;Riyadh Investment Park. We envisage Dh1.5 billion investment in Saudi Arabia in the coming years. How will you manage the expansion and investment that you are committing to? We have a cashflow if Dh3 billion which we could utilise. Besides, the proceeds from land lease, sale and income from the assets will be good

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ects – including the Mirdif Hills project, a mixed-use residential, commercial and retail development in Dubai, as also the Dh400 million Fujairah Business Centre project, being developed by its subsidiary Al Taif Investment. Over 67 per cent of our asset base is in the real estate sector and is currently worth over Dh8.2 billion – making Dubai Investments one of the biggest real estate players in UAE. It also has one of the largest land banks across the UAE, totalling nearly 30 million square feet Gross Floor Area.

“Today as we look back 20 years of our achievements, we see the creation of a number of industries to our credit. However, looking ahead, we are planning to take our success story to the international market whoever wants to benefit from our expertise...”

– Khalid Bin Kalban Managing Director and Chief Executive Dubai Investments

enough to manage them. On top of that, as a well-running entity, it won’t be difficult to raise capital. Last year we issued a $300 million Sukuk which was over-subscribed by ten times. But we stuck to $300 million only. So, funding will not be an issue for us.

What about divesting from some of the companies and industries that Dubai Investment has created over the last 20 years? The year 2015 is an year of investment and acquisition while 2016 will be a year of divestment. Dubai Investments has earlier announced expansion plans across its diversified portfolio, which includes two new acquisitions worth Dh400 million in the financial and real estate sectors, to be finalised soon.

We are eyeing expansion across our group portfolio and our new acquisitions are in line with this. The financial service company is a right fit for us and perfectly complements our model. The new real estate company will be a great addition to our portfolio, and contribute to our growth amidst the current upswing in the sector. We have also earmarked Dh150 million for acquisition this year. We are planning to take some of our companies public from 2016 when the market starts to grow and investor appetite returns. We are planning to take at least one company public through initial public offering every year from 2016. We plan to invest in a wide array of new sectors, including asset management, education, healthcare and energy sectors besides reinforcing its leadership and innovation in real estate, financial investments and manufacturing domains as part of its strategic growth plans. Dubai Investments is currently targeting new acquisi-

tions and joint ventures in the said sectors to benefit from massive growth potential on offer.

Could you shed some lights on Dubai Investment’s past achievements? Dubai Investment was set up with a clear mandate to create companies, assets and create value for the economy. Over the last two decades, we have created more than 70 industries and companies, developed a worldclass investment park, created assets worth Dh15.52 billion and 15,000 jobs. We have contributed significantly to raise the contribution of the manufacturing sector to the GDP. What is your view on the real estate market? There has been a slowdown in the real estate market due to external factors. However, we expect the real estate market to pick up next year as the economic growth in accelerating. During 2014, DI unveiled a number of real estate proj-

Does this discourage you from investing in real estate? No. Real estate is a long term business. We are not discouraged by short-term slowdowns. Dubai Investments will continue its strong thrust in developing its real estate portfolio and allied businesses over the next two to three years to take advantage of renewed market interest and surging investor confidence. The real estate industry has always been a key driving force for UAE’s economy and the unprecedented demand in the sector benefited Dubai Investments immensely, given its wide presence across the entire spectrum of the industry. Dubai Investments is confident that the current demand in the sector will continue in the foreseeable future and it is geared to cater to the required capacity. Besides, we see a strong growth potential in the affordable housing segment where there is a pent-up demand. We are looking at this segment and will roll out projects at an appropriate time. g Gulf Property

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Sharjah realty: Growing by leaps and bounds

Gulf Property Exclusive

one are the days when Sharjah was just a cheaper living alternative to people working in Dubai. Today the emirate, which is considered to be the cultural hub of the UAE, is growing economically, thanks to diversification. Moreover, the relaxation of Sharjah’s rigid property ownership regulations by its government recently has in some sorts opened the sluice gates for real estate developers to throng to the emirate with their ambitious projects. Previously, only GCC nationals had the right to own a property in Sharjah. This law was radically amended by the Government of Sharjah late in 2014, allowing all non-

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GCC nationalities with a UAE residency visa, to own properties on a leasehold basis. Although the new ownership laws may still be viewed as conservative when compared to those of Dubai, and still have some reservations on foreigners investing in Sharjah, both property developers and residents have welcomed the liberalisation, as it satiates their needs well. As a result, in response to the growing demand in the market and in a first for Sharjah, the newly formed Tilal Properties, a joint venture between Sharjah Asset Management (the investment arm of the Government of Sharjah) and Eskan Real Estate Development, launched Tilal City in December 2014. The new master planned project began offering about 2,000 residential and commercial land plots to non-

GCC nationals for the first time on a leasehold basis for a period of 100 years. Many more developers have followed suit and launched their ambitious projects in the emirate since. While Sharjah-based JMS Property Development and Management re-launched their mix-used project ‘Al Rayyan’ in Al Nahda district in February, newly-formed Sharjah Holding in March launched its first project ‘Al Zahia’, a gated community project. “This is an exciting time for Sharjah with a number of high-profile projects being launched in Sharjah, demonstrating the emirate’s ambitions,” Steve Morgan, CEO of Cluttons Middle East commented. “First if you look at the (Sharjah) residential rental market you will see that the average rental values have grown by 53 per

cent since 2012, which is good going in any market. We believe that this significant rise in rentals indicates to a high underlying demand and highlights the depth in the market.” The ‘Sharjah Winter 2014 Residential Market Outlook’ by Cluttons, available to Gulf Property, offers a sneak peak into how the residential property market in the emirate had performed till the third quarter of 2014.

Rents continue to surge

At the end of Q3 2014, rents across Sharjah stood 26.4 per cent higher than the same time last year, with Q3 registering growth of 5.3 per cent. The latest increase follows the 5.7 per cent rise recorded during the second quarter and translates into a

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An artist’s impression of Tilal City, Sharjah

23 per cent surge during the first nine months of 2014, according to the report. Apartments retained their lead over villas, with rents rising by 35 per cent in the 12 months to the end of Q3. ‘The strength of tenant demand has persisted throughout the year against a backdrop of static residential supply. Furthermore, with tenants wary of the lack of alternative options in the market, many households are choosing to remain in situ at renewal, capitalising on the security offered by the three year Sharjah Municipality “rent-cap”,’ according to the report by Cluttons, which is also the exclusive sales agency for both the Tilal City and Al Rayyan projects. ‘While reverse migration from Dubai has no doubt fuelled overall tenant demand, requirements from Sharjah’s rapidly expanding Air Arabia

has put pressure on the limited supply of villas, particularly at the higher end of the market. Furthermore, with the strong growth in Dubai’s hospitality and food & beverage sectors, several businesses have singled out Sharjah as an affordable alternative to Dubai for bulk staff housing. This will inevitably catalyse increased competition for the city’s restricted apartment stock, particularly in the near term’, the report predicts.

Villas become pricier

During the first three quarters of 2014, villa rents increased by 29 per cent, with the rate of rent acceleration slowing to just under 7 per cent in Q3, from 8.2 per cent in Q2. ‘This is not a reflection of weakness in the level of re-

quirements, but instead points to a breaching of affordability. Clearly average household incomes have failed to match the speed of growth in rents. Overall, the behaviour of the lettings market in Sharjah mirrors what has already occurred in the lettings markets in both Abu Dhabi and Dubai and we expect this to persist as affordability issues start to limit the strong rental value growth we have recorded over the past 18 months’, as per the forecast by Cluttons. ‘The overall level of villa enquiries continues to outstrip supply and we are still seeing developers rush to mobilise on sites, reflecting the depth of confidence in the market. The planned villa supply should take 18 to 24 months to be delivered to the market, although it may be delayed by issues surrounding SEWA (Sharjah Electric-

ity and Water Authority) utility connections’, the report maintains. So is the growth of the Sharjah market solely dependent on resident relocations from Dubai or Abu Dhabi? “I think this is clearly a factor for towns and cities which are located near bigger towns and cities. They will naturally benefit from the growth of the bigger city,” Morgan believes. “But Sharjah has its own international appeal as well.” The UAE economy has experienced a strong period of growth since 2012, with GDP rising at a year-on-year rate of 4 per cent. Announcements such as Dubai’s Expo 2020 have boosted sectors including tourism and hospitality. This robust and sustainable growth has had a crucial impact on real estate sector growth not just in Dubai and Abu Dhabi, but also in Sharjah. g Gulf Property

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JMS re-launches Dh700m Al Rayyan in Sharjah

Indrajit Sen Senior Reporter

harjah-based property developer, JMS Property Development and Management has recently announced the re-launch of Al Rayyan, a mixed-use project in Sharjah. The Dh700 million development, which

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spans across 2.7 million square feet, will feature residential, commercial and retail units. Al Rayyan is one the first projects in Sharjah where all non-GCC UAE residents will be able to own residential apartments on a leasehold basis. The ownership structure for the project is a natural corollary to the Government of Sharjah sig-

nificantly relaxing ownership rules recently. Al Rayyan, which was first launched in December 2007, was stalled due to the financial crisis of 2008-10, despite having made a few sales, Randa Kamal, CEO of JMS Property Development & Management told Gulf Property. “The world went into a recession. We all know how real estate projects were af-

fected at that time; many of them were delayed and many of them stopped completely,” Kamal said. Moreover “after the recession struck, the Central Bank instructed all commercial banks to stop funding real estate projects. So we had to stop working on the project back then,” she said. She claimed that JMS did not completely halt construction

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NEWSUPDATE The team behind Al Rayyan project at it’s relaunch event

at the time, but continued with a few partners on site, albeit at a ‘very slow pace’. Kamal, who has been leading JMS since 1988, also revealed, “We did sell a few units and those investors have been with us ever since. We informed those investors during the recession that we are going to go slow on construction for the timebeing. But at the same time

we did not take any payments from them.”

Many ‘firsts’ for Sharjah

“Al Rayyan development contains many ‘firsts’ for Sharjah. Mixed-use developments have coupled the residential offering with retail and leisure facilities, or with commercial space, but this is

the first to combine all three lifestyle elements of living, leisure, and work. Al Rayyan will provide tenants and owners with an environment that is unsurpassed for quality of life, and that complements modern family living in Sharjah,” Kamal said of the project. Al Rayyan will comprise two residential towers, a commercial tower, and a re-

“The world went into a recession [in 2008]. We all know how real estate projects were affected at that time; many of them were delayed and many of them stopped completely. After the recession struck, the Central Bank instructed all commercial banks to stop funding real estate projects. So we had to stop working on the project back then.”

– Randa Kamal, CEO of JMS Property Development & Management

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tail complex. The residential buildings will contain a total of 504 spacious units, ranging from one- to four-bedroom apartments, with full access to men and women’s spa facilities, landscaped leisure areas, gym, a sizable swimming pool and 24-hour concierge and security services. The starting price for a 1 bedroom apartment, spanning an area of about 1,300 square feet, would be Dh750,000, the media was told. The two-storey retail mall will include a hypermarket of over 19,000 square metres, as well as up to 90 shops. The commercial tower will house premium offices and facilities, with the top 12 floors of the structure planned to consist hotel apartments. “We are pleased to say that we are also in negotiations with premium hotel operators for this project and

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we look forward to announce a prestigious partnership very soon, along with other partnerships across other aspects of the project,” Kamal announced at the launch of the project. Al Rayyan is strategically located in Sharjah’s Al Nahda district, and is at a short distance from both the Dubai and Sharjah airports. One of the other significant advantages of the project is that it is also within easy commuting range of the American University of Sharjah, Sharjah University and commercial centres of both Dubai and Sharjah, making it convenient for both professionals and students. Al Rayyan is being designed by Canadian architectural firm B&H. “The design of Al Rayyan is particularly focussed on the interiors and is another first for Sharjah. This development is de-

signed for the modern family,” Kamal said of the project. “Our area of expertise is large-scale residential and commercial, and mix-used projects,” said Tõnu Altosaar, Senior Principal Director, Middle East and North Africa, of B+H Architects. “We tried to balance creativity and responsibility. We tried to living create space. We were really patient while designing the towers. Fortunately we had experience and a partner who share our vision. The project has been designed to world-class standards using sustainable materials. It will be a city within a city.” Altossar said he wished to offer space within Al Rayyan; an aspect he found missing in most other towering residential structures in the UAE. “I think the mixed-used towers (of Al Rayyan), with the space that has been used to

build them, is a first for Sharjah. “If you look at the buildings in the UAE, there are towers after towers, with no space between them. We created a nice living space within the complex. We tried to create a functional and practical building,” he stated. The recent lethal fire accidents in Abu Dhabi, which claimed the lives of 10 workers, and in Dubai where multiple residents of The Torch tower were rendered homeless, has not just spurred developers to strictly implement safety codes, but has also alarmed buyers/investors to pay attention to safety aspects. Altossar assures the apartments at Al Rayyan have been designed to meet the highest safety standards. “The computerised building systems will be monitoring safety. Latest technologies

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have been installed, namely web monitoring systems, smoke detectors all over the apartment, sprinklers in all the rooms and corridors and the stairs. We are also well ventilated,” he said told the media. “In case of emergencies, we are at an advantage compared with The Torch, which is 337 metres in height. Evacuation, during emergencies will be far easier in our case. We actually passed all the safety requirements,” another representative of B+H Architects said.

Al Rayyan back on track

Al Rayyan is now back on track, with JMS having cleared all hurdles with respect to financing and permissions. About 65 per cent of the project’s construction

is now complete and the entire project appears to be getting ready for delivery in Q2 2016. “We underwent a little bit of delay, because we changed the concept of the commercial tower from being only offices to housing offices and hotel apartments,” Kamal acknowledged. Terna Construction is the main contractor for Al Rayyan and this is their first project with JMS. “We had other contractors with whom we worked before, but for this project we thought of having a little change,” Kamal remarked. Al Rayyan’s total value of development is being pegged at Dh700 million, and the cost excludes that of the hotel apartments and the plot (which Kamal estimates to be about Dh260 million). The project is mostly being funded by Sharjah Islamic

Bank, which is also providing mortgage facilities to buyers. Property management and advisory firm Cluttons is the exclusive sales agency for Al Rayyan and is also offering sales and marketing advice to JMS. “We’re very pleased to be working with JMS Property Development and Management. Al Rayyan will attract buyers seeking a high quality family lifestyle, and those seeking a convenient location,” Steve Morgan, CEO of Cluttons Middle East said at the press conference. Al Rayyan’s proximity to both Sharjah and Dubai makes it an appealing prospect for both real estate investors and homeowners, who are likely to be locals as well as Saudi, Qatari, Indian, Pakistani and British nationals, according to Cluttons’ research. “With freehold property

available to locals and leasehold available to all expatriates UAE residents, we expect residential, commercial and retail units at Al Rayyan to be in high demand,” Morgan further said of the project’s advantages. In addition to the leasehold ownership structure, commercial units will be sold to businesses on a ‘shell and core’ basis, giving companies the freedom to create their own office spaces. When asked how well the market would respond to Al Rayyan, Morgan was quick to respond saying, “I genuinely think it a new project for Sharjah in terms of the quality it provides, the finishing that you are seeing. And the whole lifestyle it will offer. Considering a few positive aspects of the Sharjah property market, Cluttons is confident that Al Rayyan will be a success.” g Gulf Property

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MAF starts delivering Al Zahia villas to buyers NEWSUPDATE

Paromita Dey Senior Reporter

hat does a family expect when they move into a new house – safe and secure environment for the kids, basic community facilities available at the doorstep, easy commute to work and all the places nearby. Taking all this into consideration, Al Zahia, Sharjah’s first ever gated mixed-use community, promises to create a new era for residential community living in the emirate of Sharjah.

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Sharjah, as we all know, is the cultural and the educational hub of the UAE, boasting of all the good educational institutions and cultural centers. Al Zahia, owned by Sharjah Holding and managed by Majid Al Futtaim Properties, will embody Sharjah’s traditional values in a progressive and contemporary setting while offering homeowners a safe and secure community. By bringing together international ideals of living with Sharjah's deep-rooted family and cultural values, Al Zahia is truly a comprehensively designed integrated community offering a well-rounded

lifestyle. The community is situated between Sheikh Mohammed Road and University City Road, close to the Sharjah University City, Sharjah International Airport and Sharjah Airport International Free Zone (SAIF), with major road links to Dubai and the northern emirates. “Al Zahia is a landmark development, it announces the beginning of a new era in Sharjah’s real estate sector and marks Sharjah’s first ever integrated mixed-use gated community. It will also help diversify the real estate sector of the emirate,” said Bader Hareb, Chief Property

Officer for Majid Al Futtaim Properties-Communities Business Unit, in an interview with Gulf Property.

What will Al Zahia offer?

Al Zahia is one of the projects of Sharjah Holding, a strategic partnership between the Government of Sharjah and Majid Al Futtaim Properties. Sharjah Holding was established in 2008 in line with the vision of H.H. Sheikh Dr. Sultan bin Mohammad Al Qasimi, Member of the Supreme Council of the UAE and Ruler of Sharjah, under the guidance of

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H.H. Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah and H E Majid Al Futtaim, founder and president of Majid Al Futtaim Holding. The project offers a range of 3, 4 and 5-bedroom townhouses and villas, ranging from 2400 to 3700 square feet, in addition to studios, and 1 and 2 -bedroom apartments, ranging from 530 to 1020 square feet. There will ultimately be seven phases in the development of Al Zahia. It will finally be home to over 12,000 residents in 2270 residential units and span a total area of

around 1,300,000 square metres. Overall the project will offer 349 villas, 800 townhouses, 1060 garden apartments and 61 boutique villas. In addition, there will be 12,600 square metres of retail cluster, 2 mosques and 5 neighbourhood parks. As many as 49 homeowners have already taken possession of their new properties with the upcoming new release of homes, which is underway, marking construction of another 277 units to be completed by the second quarter of 2016. As claimed, Phase 2 is now 90 per cent sold and the last and final phase is estimated

for completion in 2019. “Our project is quite different from what other developers offer. We care about the endusers, that is why we have carefully built a masterplan that grows organically. The idea behind phasing the project is that people staying in Phase 1 will not be disturbed by the machinery and drilling works being conducted in the other phases. Hence there is some fundamental difference between what we do and what the market is offering currently,” mentioned Hareb. The management claims that the pricing for the project is highly competitive, a villa in phase 1 costs around a million Dirhams, whereas townhouses in phase 2 will start from around Dh1.9 million. Studios will start from Dh300,000 and as Bader explained, the prices will go up based on the location, height and other amenities. “I think the price range is suitable for the market in Sharjah, Dubai

and other emirates, very competitive.” The company also plans to make it easy for buyers, by joining hands with banks ADCB and Sharjah Islamic for easy mortgages and competitive payment plans. As Lee Tabler, Executive Director-Communities, Majid Al Futtaim Properties, explained, “We definitely plan to come up with an attractive payment plan soon. For example, in phase 1, the buyers had to pay 10 per cent on reservation, 10 per cent on sales and purchase agreement (SPA), and 80 per cent on handover. In phase 2, we modified it a little bit, buyers will now pay 10 per cent on reservation, 10 per cent on SPA. Then we have a series of payments, leading up to 50 per cent, where the buyer will get a mortgage from the bank.” He also added that the apartments, which they will launch soon, will also have Gulf Property

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different and a favorable payment plan. “We are very market driven, I cannot disclose the details right now, but yes, we are very consumer friendly.” The community also provides boutique villas catering to the commercial needs of the Sharjah business sector. Phase 2 will have 24 boutique villas on the perimeter of the project, allowing investors to set-up commercial activities. “We haven’t placed them in the market yet for sale, we are still in the process of modifying the interiors and exterior. There have been lots of interest in our boutique villas, but we simply haven’t focussed on selling them yet. We will not allow manufacturing shops,

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only soft business mostly retail shops and small offices,” mentioned Tabler.

Ownership structure

The project is open for buying to GCC and Arab nationals as a freehold project, as per the law of the Government of Sharjah. But the project is still under initial approval stages in the leasehold process for non-Arab nationals. Tabler stresses on the fact that it is only a matter of time that the process will be completed soon. “We have our initial approval before going through the formality of getting it approved by the Municipality and Shar-

jah Real Estate Regulatory Authority.” But certain other projects in Sharjah have already started providing leasehold projects to non-Arabs, to which Tabler replied, “The first project that offered leasehold to expats offered land plots, not readymade villas. We will be offering built up villas and town houses. We believe that we will receive our approval very soon, maybe sometime in the first half of 2015.” The villas in Phase 1 are currently built to suit the taste of a contemporary Arabic family, mixed with a traditional touch and feel. But once Al Zahia gets the leasehold approval for non-Arabs, will there be establishments that would suit the taste of an

expat family? Hareb said, yes, definitely. “Now the villas in Phase 1 are quite suitable for an Arabic family. We will have phases, where we will offer studios and garden apartments; units preferred by non-Arabs. The current phase addresses what our current clients are looking for. Once we get the approval, then we will think of what to do next.” Also, according to Hareb, people in gated communities typically take better care of their home. “This transforms into an added value for the property over the long term, tying in perfectly with Majid Al Futtaim Properties’ focus on creating sustainable living environments designed for lifelong value,” he said.

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NEWSUPDATE

Looking ahead

Al Zahia is the first community project for Sharjah Holding, a high-end community yet being offered at affordable prices. The project, which echoes MAF’s vision, namely ‘creating great moments for everyone, everyday’, will generate a 10-year large scale employment benefit during the construction phase. As claimed, subsequently, it will not only supply significant jobs for the people living in the emirate, but the development will also stimulate the local economy. As such, Al Zahia’s estimated contribution to the Sharjah economy is anticipated to reach around Dh5 billion.

Specialising in communityoriented developments, Sharjah Holding can also lay claim to being the first in transforming the emirate’s mixed use real estate sector, having accomplished success with the introduction of Matajer outlets, being the community’s first neighbourhood malls in Sharjah. As Tabler mentioned, “We have to be careful about how we label the project. Ours is a high-end community, offering great value for money. The malls by MAF have always targeted upscale middle income customers. That’s what we believe is Al Zahia is, upscale middle end. It’s affordable, but it’s a quality community.” Tabler also stressed on the fact that MAF, as a developer, does not believe in creating volumes, they aim to create a brand and offer quality living. Although Sharjah Holding is a profit-oriented joint venture by the two names, but profits are not earned at the cost of creating a proper brand. “We aim to create a brand, a high quality product. Yes, we def-

initely need to make profits, Sharjah Holding is a profit oriented JV but not at the cost of creating a proper brand. We manage our construction costs carefully, so that we can price the product reasonably. We believe the market is going to receive it positively.” To this, Harb added, “These lands, on which the project is being built, is owned by the Government of Sharjah. Dividends will be distributed in the form of profits, 50-50 between the two parties.” Other community living projects by Majid Al Futtaim includes The Wave in Muscat, Oman and Waterfront City in Beirut, Lebanon. The company owns and operates 17 shopping malls, 11 hotels and three mixed-use communities in MENA, with further developments underway in the region. The shopping mall portfolio includes Mall of the Emirates, City Centre malls, and also four community malls which are in joint venture with the Government of Sharjah. It holds exclusive rights to the Carrefour fran-

chise in 38 markets across the Middle East, Africa and Central Asia, operating a portfolio of over 55 hypermarkets and over 65 supermarkets in 12 countries. The company has the same goals for the emirate of Sharjah, create a unique brand and expand to tap into the real estate market in the emirate. “The relationship is a long term strategic partnership between the Government of Sharjah and MAF Properties, and the goal is to expand in Sharjah with community living and Matajer shopping centres, whatever is necessary for Sharjah. We would not look into other emirates until we have created a very successful brand. Today we already have a successful Matajer brand, a community shopping centre and we are close to creating a successful Al Zahia community brand. Once we achieve success, then we will think of expanding,” mentioned Tabler. He also added that Sharjah is a large emirate with lots of opportunities for development. g Gulf Property

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Realtors gain big from booming UAE-Egypt ties

Indrajit Sen Senior Reporter

tability seems to have returned to Egypt now with President Abdul Fattah el-Sisi at the helm of affairs. Egypt is fast emerging out of the dark days of unrest between the security forces and supporters of the Muslim Brotherhood, which followed days after former president Mohammed Morsi of the outlawed group was replaced by the Egyptian military, headed by Sisi, in July 2013. With Sisi now firmly in con-

trol in Cairo, after ascending to the presidency following his landslide victory in June 2014, Egypt is well on its path to much-needed economic recovery. However, the North African nation, which has been mired in political and social unrest since the overthrow of longtime president Hosni Mubarak in 2011, is desperate for foreign investments to rebuild the economy. To acquire foreign funds and capital, Egypt organised an ambitious economic conference in March, and the administration used the platform to reach out to various donor nations and busi-

nesses. The three-day conference held at the Red Sea resort city of Sharm El Sheikh, saw multiple political leaders and prominent entrepreneurs from across continents, pledging billions of dollars in aid and investments to Egypt. According to a report by The Wall Street Journal, Egypt signed investment deals and secured loans and donations worth more than $140 billion during the conference. The GCC states — Saudi Arabia, the United Arab Emirates and Kuwait – were quick to pledge another $12 billion (with each state contributing $4 billion) to help

stabilise Egypt’s economy, the report said. It is worth nothing that ties between the GCC states and Egypt have improved ever since Sisi assumed power, and the former has become a key benefactor to the latter. Relations between the UAE and Egypt, in particular, have flourished to a great extent. The two nations have been cooperating on not only economic development but also on other crucial spheres of politics and diplomacy. Ties between Abu Dhabi and Cairo hit a new high when Sisi visited the UAE in January. Leaders of the two countries agreed to cooperate on Gulf Property

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not just economic issues, including trade, investments and energy, but also took a joint stand against terrorism. Sisi, in his concluding remarks to the Egypt Economic Development Conference (EEDC), thanked the generous political leaders and benevolent capitalists. But he also said that his country would need a lot more money in the coming years, to strengthen the economy and bring about prosperity to the population. “I know Egypt and its problems and I can see them as I can see you now,” Sisi told the vast audience at Sharm El Sheikh. “I know the solutions as I see you now. Egypt needs no less than $200 to $300 billion to have real hope for the 90 million Egyptians to really live, really work, and really be happy.” “We are behind, and those who are late must either speed-walk or run…even running will not be enough in our case,” he remarked.

Gulf Property

Capital Development Country Russia

From

Moscow

1918

Karachi

Islamabad

1959

Abidjan

Yamoussoukro

Yangon

Naypyidaw

Rio De Janeiro

Tanzania

Dar Es Salaam

Kazakhstan

Almaty

Ivory Coast Myanmar

Source: BBC News

However the EEDC will be remembered most as the summit when the country’s government declared plans to build a new administrative and financial capital.

Egypt’s capital

St. Petersburg

Brazil

Pakistan

gains

Brasilia

Dodoma Astana

The world was taken by surprise when Egypt’s leaders in March announced that they were shifting the seat of government out of the historic city of Cairo and laid out concrete plans for the new capital.

1950 1980 1983 1997 2005

The new capital city would be built on the road to Ain al Sokhna to the east of Cairo, and closer to the Red Sea. The city would be sprawled across some 700 square kilometres and the government hopes it would accommodate as many as 7 million people and generate about

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“Emirati aid to Egypt over past 2 years reached $14 billion for projects in education, housing, transport, health, food security, energy. We announced new support package of $4 billion to boost Egyptian economy.”

– His Highness Sheikh Mohammed Bin Rashid Al Maktoum on Twitter

1.5 million jobs. After completion of the construction, the new capital will be linked to Cairo and the Suez Canal. The project is estimated to cost around E£150 billion ($45 billion). His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and Sisi oversaw the signing of the agreement to build the new capital for Egypt on the sidelines of the economic conference in Sharm Al Sheikh, according to media reports. The deal was signed by Mohammed Alabbar, Chairman of Dubai-based developer Emaar Properties, and by Dr Mostafa Madbouly, Egypt’s Minister of Housing, Utilities and Urban Development. Among others present were HH Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs, Egyptian Prime Minister Ibrahim Mahlab, members of the

UAE delegation, and a number of other ministers and senior officials. More than 35 specialised Egyptian construction companies will take part in the implementation of the project. The new capital will host ministries, official institutions and embassies, headquarters for companies and private sector firms. As far as civic amenities are concerned, the new city will also include an airport, about 10,000 roads, resorts and modern shopping centres and residential neighbourhoods, among others, as per various media reports. Another report said that a tower resembling the Eiffel Tower in Paris has also been planned, for tourism puposes. The new capital, which does not have an official name yet, will be named after His Highness Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of

Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. The project is estimated to take up to seven years to be completed.

‘Emaar not building Egypt’s capital’

Alabbar has refuted widelycirculating media claims that Emaar has been tasked with the responsibility of building Egypt’s new capital. In an interview with Egyptian TV anchor Amr Adib, post the signing of the deal, Alabbar explained that he cofounded a new company named ‘Capital City Partners’. He clarified that this new enterprise was solely dedicated for the development in Egypt and stressed that it was independent of Emaar. "The new capital is a huge project. It needs focus, disci-

pline and prioritising," he said, adding that Capital City Partners is in charge of designing and implementing plans for the new capital, without sub-contracting. Emaar Properties too announced in a Dubai bourse statement in March that it was not involved in developing the new Egyptian capital. ‘We would like to clarify that Emaar is not involved in the development of the new capital city project in Egypt’, it said. He also made a startling revelation saying that the land for the proposed city was provided to the Emirati company for free by the Egyptian government.

UAE developers make hay

However, Emaar is presently aggressively pursuing various mega projects in Egypt, through Emaar Misr, its subsidiary company in the counGulf Property

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Al Habtoor strengthens ties in Egypt

AE-based business conglomerate Al Habtoor Group has been considering plans for large-scale investments in Egypt. Chairman Khalaf Ahmad Al Habtoor is contemplating building a project similar to Al Habtoor City currently under construction in Dubai, a statement said. He is also believed to be looking at potential tie-ups in Egypt’s automobile industry. “We are in the process of conducting feasibility studies in the real estate, hospitality and auto sectors. If good opportunities present themselves then we will jump on them,” the statement quoted Khalaf Al Habtoor as saying. “This will not only be a boost to the Egyptian economy, and provide jobs for many Egyptians, but it will also send out a message that Egypt is ripe for investment.” In March, Al Habtoor discussed his investment plans with Tarek M ElGhazaly of National Bank of Egypt. Ghazaly told Al Habtoor that the bank is keen to help Al Habtoor Group secure key investment opportunities in Egypt, especially Cairo. Earlier in the month, Al Habtoor met Hisham Okasha, Chairman of the National Bank of Egypt to discuss the Group’s investment opportunities in the country and to look at ways in which the bank could participate, the statement mentioned. g

Gulf Property

try, and is believed to be developing two large-scale mixed-use projects. Majid Al Futtaim, one of the UAE’s leading retail and leisure group, also announced in March that it would boost total investments in Egypt to E£22.5 billion (Dh10.8 billion) from E£18 billion as part of a massive expansion drive in the retail sector involving the opening of a malls, hypermarket and supermarkets across Egypt. Alain Bejjani, Chief Executive Officer of Majid Al Futtaim Holding, said that an additional investment of E£4 billion is allocated for the development of four neighbourhood centres in the new residential developments in and around Cairo, as well as for the development of four new shopping malls in greater Cairo. The enterprise would also invest E£500 mil-

lion to introduce the largest VOX cinemas (the company’s movie theatre brand) over the coming five years. Addressing a press conference at the EEDC, Bejjani said the Egyptian government had succeeded in creating an investment climate that has encouraged Majid Al Futtaim to increase its investment to E£22.5 billion, in addition to unlocking two major investments as part of the original E£18 billion plan. During the conference, Bejjani signed a memorandum of understanding for the new projects with the Egyptian government. he also unveiled two projects forming part of the original E£18 billion investment plan, including a new mall, under the name of City Centre Almaza, with investments of E£P3.5 billion, and the major redevelopment and expansion of City Centre Maadi, with in-

vestments of E£4 billion. “The additional projects affirm our strong belief in the vast opportunities available in the Egyptian market,” media reports quoted Bejjani as saying. Majid Al Futtaim’s move to boost investment is close on the heels of its recent announcement a five-year investment plan that would see the group developing Mall of Egypt with investments of E£5 billion, the expansion of Carrefour hypermarkets and supermarkets network to 55 branches by the end of 2019 with investments of E£5 billion, and the recent expansion of City Centre Alexandria with investments of E£70 million. “As Egypt is undergoing a much needed economic reform process, we are working restlessly to identify the proper partners who will collaborate with us as we en-

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deavour to achieve prosperity for all Egyptians. As such, it is important for us to work with experienced, committed partners and we believe that Majid Al Futtaim has a significant role to play in the development of our country’s retail landscape and economy in general,” said Ashraf Salman, Egypt’s Minister of Investment, who was also present at the signing ceremony. Similarly, other major UAE developers and contractors have also invested heavily in the Egyptian economy. Luxury real estate developer Damac Properties has planned a huge masterplanned mixed-use development named Gamsha Bay; although the project is yet to take off. Construction firm Arabtec has also been assigned by the Egyptian government to build 1 million affordable homes. g

Abu Dhabi realtor plans to build $80bn city in Egypt

agle Hills, an Abu Dhabi-based real estate developer, is reportedly planning to build a Dh293 billion (US$80 billion) city near the Egyptian capital Cairo — a project that will focus on providing affordable housing. News agency Bloomberg referred to two of its sources ‘with knowledge of the matter’ in its report, saying that the new city will include an airport, hotels, a mall, as well as civic amenities such as hospitals and schools. When contacted by Gulf Property, a source close to the company however, declined to comment, saying

Eagle Hills was yet to make any announcement. Separately, in an interview with Bloomberg TV late in February, Ashraf Salman, Egypt’s Minister of Investment, said that ‘the project will be privately funded by an “investor developer” and possible international partners and will cost $75 billion to $80 billion over (a period of) 12 years’. Salman said that the choice of developer has been narrowed down to two companies from the UAE. The project was to be formally announced by the Egyptian government at the EEDC in Sharm El Sheikh in March, although no mention of the project was made. The project will be built to the east of Cairo and ‘form a natural progression toward a new development area on the Suez Canal’, Salman re-

portedly said. The city will be the same size as the New Cairo suburb, he said. Eagle Hills already has an international portfolio that includes projects in Bahrain, Nigeria and Serbia. It is also worth noting that Mohamed Alabbar, the Chairman of global real estate developer Emaar Properties, also leads Eagle Hills as a Board Member. The company that claims to be ‘experts in urbanisation and renewal’, says: “Our flagship destinations positively impact business and tourism, while a 'halo effect' ensures sustainable economic growth. The vibrant residential projects capture the very best the city has to offer, providing the ultimate luxury lifestyle,” says the company’s website. “Born in the UAE, Eagle Hills is looking to share its expertise with aspiring nations.”g Gulf Property

50-51 Danube_Layout 1 29/03/2015 21:21 Page 1

Danube to launch third project as revenue soars MATERIALS

ccording to the annual financial results for 2014 announced by Danube Group, the company recorded an annual turnover of Dh2.3 billion, an increase of 15 per cent over 2013. The group also recorded a sales growth of 16 per cent in the starting of 2014 and further maintained the prominent growth rate over 2013, a press statement from the company maintained. In 2014, the Group which is popular in the region for its building materials and home furnishings business, also witnessed the growth of its real estate arm. Danube Properties earned a revenue of Dh500 million during 2014, in addition to the core business revenues of Dh2.3 billion. “We are extremely happy to have recorded such a brilliant performance in 2014,” Rizwan Sajan, Founder and Chairman, Danube Group said of the 2014 results. “We were a little skeptical at the start of the year, especially with the results received in Q1. It was after March when the growth curve took a steep hike, even though the market did not give any noteworthy results.” The considerable performance in 2014 has motivated

Gulf Property

Danube began construction of their ‘Dreamz’ and ‘Glitz’ projects in February

Danube Group to further diversify into new sectors and strengthen the existing business. Having established itself as a strong player in Dubai’s residential market, catering to the mid-income segment, the developer is contemplating on launching a third project in Dubai, the statement reveals. “We will continue our foray into the real estate sector as we expect to announce our third residential project very soon. This new project will primarily comprise of apartment buildings,” Sajan said. For their maiden project

‘Dreamz by Danube’, a residential project comprising 171 townhouses in Dubai’s Al Furjan area, Danube Properties claimed to have received ‘an exceptional investor response’. It was reported that all of the project’s units were sold out within a day of the launch. Encouraged by this success, the developer soon announced their next project ‘Glitz’, another residential project worth Dh300 million located in Dubai’s Studio City. ‘Glitz’ too has received a similar response according to Danube, with most, in not

all, of its units being sold out on the day of launch in January, 2015. Speaking of Danube’s home interiors business, Q1 2014 ‘saw a rise in the popularity of Danube Home (the group’s new retail store chain), and it was in Q2 that the group received an overwhelming response to the sales’ the press release maintains. Danube’s home market the UAE accounted for 40 per cent of the revenues in 2014, while Saudi Arabia accounted for 30 per cent, Oman 20 per cent and the

50-51 Danube_Layout 1 29/03/2015 21:21 Page 2

Alucobond gets Civil Defence nod

“We were a little skeptical at the start of the year, especially with the results received in Q1. It was after March when the growth curve hiked, even though the market did not give any results. We will continue our foray into the real estate sector as we expect to announce our third residential project very soon. This new project will primarily comprise of apartment buildings.”

anube Group the sole distributor of fire-rated aluminum composite panels under the brand name Alucopanel U.S.A, has recently received approvals from the Dubai Civil Defence Authorities for distribution in the UAE market. After much wait, the brand celebrated the certification with an expectation of the product demand to increase significantly. Continued growth in high rise construction in UAE, coupled with a spate of recent building fires such as the Dubai Marina Torch Tower in Feb 2015, Tamweel Tower in Jumeirah Lakes Towers and more, left

– Rizwan Sajan, Founder & Chairman, Danube Group

other markets contributed to the remaining 10 per cent. “Sales started picking up from Q2, and thereafter we maintained an upward performance graph throughout the year. Our best months were June-July where the launch of our realty division gave a boost to our performance for the year,” Sajan observed.

Plans for 2015

Moreover as part of expanding its home furnishings arm, the enterprise has announced plans to open sizable showrooms of above 50,000 square feet in Dubai, Sharjah, Qatar and Muscat. “To start with, we would like to focus on consolidating our core building material business and then progressively add to our retail Danube Home showrooms. We will open two impressive showrooms of our building mate-

rial division by the end of 2015,” Sajan announced. The year 2015 will also see Danube expanding its overall business by foraying into verticals other than real estate and building materials and interiors. Danube ‘will take a leap’ by entering the retail sector with a men’s garment fashion brand towards the end of 2015, the press statement announced. The enterprise expects to open its first showroom in H2 2015, with further plans of having three fully functional showrooms by the end of 2015. Moreover, the reported success of ‘Cha Cha Chai’, a dedicated Indian tea and snacks joint, has encouraged Danube to add six more stores to the chain in 2015, the media statement confirms. At present, Danube operates seven outlets of ‘Cha Cha Chai’ in Dubai and Sharjah. Overall, Danube plans to

grow by up to 20 per cent in 2015 by virtue of expanding its various business verticals and foraying into the new sectors, the statement says. The group also acknowledges that the increasing investor confidence is a major boost to Dubai’s growth potential and development. It seeks to capitalise on these positive developments such as the announcement of the EXPO 2020 and other major projects within the region. “With Dubai winning EXPO 2020, the business environment has received a great boost,” Sajan believes. “The government has already announced several new projects towards making EXPO 2020 a successful event. With added infrastructure comes the need for building materials, and given our strong position in the market, Danube naturally is the preferred choice of the developers.” g

MATERIALS

hundreds of residents homeless. As a result of these fire incidents, regulations were enacted banning the use of non-fire retardant composite panels of the type that contributed to the immolation of several buildings. The Dubai Civil Defence have taken significant steps to ensure the safety of buildings and the general public by updating its Fire and Life Safety Code in 2013 and made it a requirement that exterior cladding is fire-retardant on all new buildings over 15 meters tall. The latest UAE firesafety code Annexures: A.1.21. Rev 2, are much more stringent than before and clearly emphasises that the core material used in cladding panels must be tested separately by exposing it to fire without the aluminum skin g

At A Glance

Dh2.3 billion

annual turnover of Danube Group in 2014

Dh500 m

revenue of Danube Properties in 2014

20%

growth expected by Danube Group in 2015

25,000

products available with Danube under one roof Gulf Property

52-59 India Corner - Mantri Developers_Layout 1 29/03/2015 01:35 Page 1

Mantri Developers eye IT professionals INDIACORNER

Indrajit Sen Senior Reporter rban developments usually influence the growth of information technology (IT) services industry – to offer greater comfort to the new urban dwellers. However, in parts of South India – it is the opposite. A number of townships have sprung up in parts of South Indian cities that were inspired by the growth of the IT sector and the technology-savvy new urban middle class. Bangalore, Hyderabad, Chennai and a few

Gulf Property

other cities have actually grown due to the IT and the outsourcing industry. The southern cities of India, in particular Bangalore – the IT capital of the nation – are growing by leaps and bounds. India’s globally successfully IT industry is primarily based in the south, and its phenomenal growth has led to the development of multiple other sectors. Real estate is one of them. As the regional economy progresses, it’s not just Indians who are migrating to cities like Bangalore, Hyderabad and Chennai to enhance their careers. Even foreign IT firms are setting up base in these cities, pre-

dominantly Bangalore, to have a share of the pie. A booming IT industry has given rise to an economically strong middle-income class in India, with tremendous purchasing power. Today, this massive mid-income populace looks for good quality in everything that they buy. Property, for instance. Mantri Developers Private Limited, a Bangalore-based South Indian real estate developer is making hay out of this huge demand for affordable as well as luxury properties in the region. While on one hand with their varied portfolio of luxury projects they are luring HNWIs based

in the South, on the other hand they are offering attractive payment plans for young IT-employed couples to buy apartments. Established in 1999 by Sushil Mantri, the Chairman and Managing Director, the company has developed not just residential projects, but has successfully ventured into retail, educational, commercial and hospitality segments of real estate. In the 16 years of its existence, the company has built over two dozen projects. Today, Mantri Developers cumulatively has to its credit over 21 million square feet of constructed area, houses over 30,000 residents and

52-59 India Corner - Mantri Developers_Layout 1 29/03/2015 01:36 Page 2

claims to be developing another 30 million square feet of projects, which are under various stages of construction. Mantri has a track record of delivering 1.4 homes per day since inception. It has also earned the distinction of developing one of India’s biggest malls, the Mantri Square in Bangalore, which was previously India’s biggest mall too. The enterprise plans to focus on the residential, commercial, retail, educational and hospitality sectors. Besides it has ambitious plans to develop huge ‘IT Parks’, a popular term in India referring to commercial spaces where Indian and foreign software companies operate from. It is firmly entrenched in India’s urban and IT cities of Bangalore, Chennai, Hyderabad and Pune and wants to focus on its projects there. In an exclusive interview with Gulf Property, Sanjeev Birari, Sales Head – International, Mantri Developers talks about the projects the developer has delivered and is currently constructing, the

Bangalore property market, and how Non-Resident Indians in the GCC and elsewhere have responded to Mantri’s projects:

Gulf Property: How big is the workforce? Sanjeev Birari: We started in 1999. We have the accolade of being the first company in India to have received a Foreign Direct Investment (FDI) and it was from Morgan Stanley. We are still with them and they are our equity partner. So you can imagine that if a foreign company chose us for investment, they have must have seen something good in us. The transparency is there in us. We have been in the business for 16 years now. We completed our first project called Mantri Woodlands in Bangalore in 1999. Till 2003 we had completed almost 1 million square feet of development. In 2005 we ventured into the education business, and we launched our brand by the name of Indus Valley. That was the first IB curriculum school in Bangalore. That particular

school has been rated as the top IB curriculum school in India. We have got 3 schools each in Bangalore, Hyderabad and Pune. In 2006 we received the first FDI in Indian real estate. We were the first recipient of FDI in real estate. In 2008, we were the first developer in India to be certified for World Class Management Systems. In 2010, we launched India’s largest mall called Mantri Square in Bangalore. The same year we also launched the Mantri Pinnacle, which is South India’s tallest residential tower. In 2013 Mantri was conferred the CII Sustainability Award by the President of India Dr. Pranab Mukherjee. Till now we have completed more than 5 million square feet of residential development. We have delivered about 20 more residential projects. We have projects in Bangalore, Chennai, Hyderabad and Pune. Apart from sales offices in these four cities, we have international offices in Dubai, Singapore and San Jose

INDIACORNER

“There are various types of investors that developers target. Typically, if you as an IT professional decide to go back and settle down in India, you will look at three IT hubs of India: Bangalore, Hyderabad or Pune. And in all these three cities we have our projects. So that is the reason why we stand to gain from our projects...” – Sanjeev Birari Head of International Sales, Mantri Developers

Mantri Energia in Bangalore Gulf Property

52-59 India Corner - Mantri Developers_Layout 1 29/03/2015 01:36 Page 3

INDIACORNER

Mantri Lithos I in Bangalore

(which is in California state of the US).

Mantri has delivered multiple residential projects across Southern Indian cities like Bangalore, Chennai, Hyderabad and one in Pune. Could you briefly talk about these completed projects in each of these cities? There are lot of projects that we have delivered till today; about 16 in Bangalore only. Two major launches for us were in Chennai. There is a major township that we have developed in the IT zone in Hyderabad called ‘Mantri Celestia’. We have also developed the largest Spanish-themed development in India called ‘Mantri Espana’, which is almost ready in Bangalore; it has got a 65,000 square feet of cen-

Gulf Property

trally AC clubhouse. We have people like CEOs and senior officials of major IT companies like Oracle and Microsoft India investing there. We also have more than 15 to 20 residential projects in the pipeline and a total of 42 pan-India projects. We will be coming up with more.

Mantri is presently constructing over a dozen residential projects in South India, specifically in Bangalore and Chennai. Could you please talk about them in brief? As far as investments are concerned, it is rare if an NRI thinks of moving back to India. Typically an NRI would always think of buying property in India as an investment. In that case, they do not treat the property like

how an end-user does. They want the property they have invested in to be an incomegenerating asset. For that matter, we have a land bank in the northern part of Bangalore. There is a tech park called Manyata Techpark, where we hold 152 acres (61.5 hectares) of land. We are the only developer to have land inside the tech park. The tech park is an SEZ (Special Economic Zone; an Indian government scheme to boost businesses), and that is a zone where you are going to get high ROI (Return on Investments) and high rental yields. So we have launched two projects there. There is a project called ‘Mantri Lithos’ that we have launched inside Manyata Techpark. There is another project which we have soft launched called

‘Energia’. So these projects can give you a lot of recurring income and rental yields, because the people who would be working in the tech park would definitely want to live in the vicinity of their workplace in a residential community. And most IT professionals prefer to live within townships close to their offices. Kindly elaborate on your commercial projects, including offices, malls and hotels. Mantri does not sell commercial spaces, we will only lease them. So we do not sell any commercial or office establishments. We have a mall management team which looks to our retail projects. As far as hospitality is con-

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INDIACORNER

Mantri Vantage in Pune

cerned we have a franchisee of Double Tree Hilton for our hotel apartments project in Bangalore. It is an up and running hotel, units of which we also lease. We manage our hotels and malls ourselves. We have plans of opening up a number of budget hotels in Bangalore, Pune and Chennai. With regards to office spaces, we again offer it on leasehold basis. We have a project in an IT SEZ of Pune. HSBC is our tenant there.

As a developer, how do you manage to work on so many projects simultaneously? In India the presence of the cities itself is huge. Now, if you have a presence in more than one city, you have a self-independent unit to drive

those projects. So in these 4 cities where we develop, we kept a proper, dedicated team, starting from the project’s inception, operations, contracting, executions, sales, and CRM (Customer Relationship Management). All these units are independent and are running parallel. And we own the second largest land bank in Bangalore. So we need to pace our projects in these land banks well enough. So if you have these land banks you need to develop them. The demand is there. The kind of projects we are launching are self-sufficient townships, it has got everything inside. But that doesn’t mean we have to compromise with the quality of our projects. When we launch a project, we do it with the aim of selling it to

satisfied customers and ensure that they get their returns. One of the important reasons we have been able to build trust is because we have our own property management company. So along with delivering a project, I have my team to manage it as well. Typically in India it is the housing societies (a popular concept in India) that take care of the properties. We tell them ‘Okay listen, instead of you doing it on your own, let our professional tem do it for you’. Our name is attached to this property management unit, who will take care of your property in a more professional manner in lieu of a service charge. It is difficult for a housing society to manage an entire residential township, including the clubhouse, the swimming

pools and other features. So these kinds of services have added value to the Mantri brand. We do not sell just a 2BHK apartment to our customers, but we help them maintain it. Maintenance and management is a key. A building which is nice and new when you are buying it might be dilapidated in the next five years, if not managed well. If you do not carefully and professionally manage a property, you are going to lose out. In India this is a crucial factor. This concept of a private developer offering property management services is not there. We have started doing this. That is a reason that the delivered projects of Mantri are still managed so well. If you compare us to other developers in this aspect, we have a Gulf Property

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plus. This is a thought process we executed a long time back. Today if you, being an NRI here in Dubai, want to rent/sell your apartment in India, our brokerage company will assist you in that. Mantri has its own brokerage firm named ‘Propcare’. So these are the added benefits of buying a Mantri property, which other developers do not offer. We help you manage your property, find a tenant to help you gain rental yields from your property, and if after 3 or 5 years you want to sell it, we will help you do that as well and ensure you get a healthy ROI. What are sources of there other soring your

your other finance? Are banks sponprojects? Do

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Mantri Euphoria elevation

you have equity partners? Is Mantri a stock exchange-listed enterprise? A few banks are sponsoring are projects. Mantri Developers was a Bombay Stock Exchange-listed company, but it got de-listed. We are trying to go public again. We have tie-ups with multiple Indian banks like HDFC Bank, ICICI Bank, Axis Bank and financial institutions like Punjab National Housing Corporation, to take care of the mortgage needs of our clients.

How many residential units are you delivering with these 13 (or more) under-construction projects? What will be the average area of each type of unit? A total of 10,000 units and the average area for those

would be 700 to 1000 square feet. The residential units we sell start from 2BHK only.

If our estimates are correct, the price for a 2BHK apartment in any of Mantri’s projects start at INR65 lakhs (Dh381,000). This seems like quite a low price for a 2BHK apartment or for that matter any residential unit in India, especially when in the other metros like Delhi and Mumbai the minimum prices for the same are over a crore. What is the reason behind this attractive pricing structure? There is a huge difference between the markets of Delhi and Mumbai, when compare to those of the southern cities. The reason is being Bangalore till today is more of an end-user market. It’s

not a speculative market. Mumbai, being the financial capital of India has been driven by speculation. About 80 per cent of the people in Mumbai cannot afford to live in their own houses. They are living on rent. The pricing structure is driven by speculation. Bangalore is the only Indian metro city where you can buy a penthouse for a crore (10 million; Dh585,000) of Indian rupees. You cannot think of buying such a large property in Mumbai at that price. Bangalore is an end-user driven market, where a person is going to actually live within the apartment she/he is buying. Even today a couple, both of whom are average earning software professionals, can afford to buy a 2BHK apartment in Bangalore. This is the differ-

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INDIACORNER Mantri Webcity in Bangalore

Sushil Mantri, Chairman and Managing Director, Mantri Developers

ence between Bangalore and the other markets of Delhi and Mumbai. Look, Mantri’s units are driven by prevalent market rates and we do not intend to influence them. INR65 lakhs is the lowest price a developer can offer for a 2BHK. Yes we do have high-end apartments in the cities we develop in. We have no plans of developing in Mumbai or in northern India. We have our land banks and we are pretty occupied with our projects in the four cities. Probably we can look to develop something in Kerala (another southern Indian state). What is the status of construction of your ongoing projects and when do you expect to deliver them to the buyers? A typical project, comprising

7 to 8 towers, takes two and a half to three years for completion. You have a standalone building it might come up within two years. So if I have launched a township project in 2014, I will probably be delivering it by 2016end. It all depends on the project. By 2018 all of Mantri’s ongoing projects will be delivered. There have been delays for few of the projects we have developed in the past, I wouldn’t deny that. But overall, we have maintained our deadline.

There are a few developers from Bangalore who are trying to attract investors from Dubai or the GCC as a whole. So are builders from Bangalore like Mantri trying to capitalise on the high accommodation

prices of Delhi and Mumbai, to win over buyers? What makes Bangalore so special: Is it just the affordability factor? It is not the affordability factor only. There are various segments of investors that developers target. Typically, if you an IT professional decides to go back and settle down in India, she/he will look at three cities which are the IT hubs of India: Bangalore, Hyderabad or Pune. The person will mostly think about going back and working in these cities. And in all these three cities we have our projects. So that is the reason why we stand to gain from our projects. Yes, the pricing factor is also crucial. NRIs have views that despite being a metropolitan city, properties in Bangalore are still so afford-

able, compared to Delhi or Mumbai. Bangalore has been rated as the No. 1 city for expats in India. So there is a cosmopolitan nature. Bangalore is a city that is coming up quite well and it is expanding.

You have been promoting your projects to NRIs in the GCC and elsewhere in the world through various means, including participating in expos like the Indian Property Show. You also have offices in Singapore and in California, apart from Dubai? What is your general marketing strategy? First and foremost, our approach is not just to sell properties to NRIs. Rather than telling them ‘Okay this is what I have and you choose from it’, we believe we Gulf Property

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should educate them on what exactly they should buy. I tell my clients to think about the next 5 years. If they decide to move back to India by then, I suggest them to buy an off-plan kind of a property, because by the time they relocate, the property would be ready and they will get to live in it. If my client is planning to buy property as an investment, I suggest them to buy in a newly-launched project. With a AAA rated developer like Mantri, the buyers’ money is safe. There are a lot of Bangalore-based developers who are selling in Dubai and the GCC. They have embarked on an aggressive marketing campaign and there is stiff competition. We know one thing for sure: Wherever in the world an Indian is, she/he will always have a property back home.

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Mantri Serene view from the lake

Typically a GCC-based an NRI, who has a professional lifespan of 20-25 years, can invest up to 4 times on real estate. He will buy a property, get returns out of it for 4-5 years and then sell it off; perhaps then buy another. So we have a different strategy. We first ensure that our clients see us as managing their wealth. Depending upon their future plans we advise them accordingly. We see ourselves as consultants along with being developers. We promise management solutions for your property, as well as assist you with your return on investments. Look, I want to retain you (the customer) and do not want to get done with you after one sale. If I do not give you a good service today, you will not come back to

me. So I will have to look after you till the time you are there with your investments. Yes, NRIs in the US have a slightly different mindset, as some of them have acquired citizenship there. But they also do like to invest in India, as returns on investment in US real estate is not as high as it is in India. The property market in India is growing by 8 to 10 per cent. Besides capital appreciation in India is also quite high.

How has been the response so far for Mantri’s projects, both back home in India and here in Dubai? The preferences of the middle class in India have changed considerably in the last seven to eight years. That is because the middle class income has gone up and the spending capacity is high now. Most couples are

now working. So do they expect good standards of living. And in the north of Bangalore, you will find a lot of expats living. The reason being that there are a lot of international schools, the malls are around and their workplaces are within the residential communities only. Hence we have come up with various schemes, one of which is where you pay 10 per cent now, pay nothing for the next three years; if you want to take a loan we will organise one for you from our banking partner and they would disburse 60 per cent of the money and they will take 10 per cent from you. You don’t have to pay the pre-EMIs until possession of your property. So you are actually buying an apartment by paying just 10 per cent of the total amount initially. Then you just forget about

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Mantri Lithos

the apartment for the next three years. Also, the apartment that you are buying today will also appreciate in value within those three interim years. So even if you are buying an apartment worth 80 lakhs now by paying 8 lakhs now (10 per cent of it), taking a conservative approach, you will still receive a capital appreciation of at least 20 per cent, raising your property;s value to 96 lakhs. So you are increasing your returns. Such schemes are good for NRIs. I myself am an NRI. Dealing with properties is my passion so I invest a lot in India. So I say you should know how to exit out of your investment also. If you maintain that investment for a long period, say 10 years, it will only grow on paper. You should actually achieve the

returns. So five years is an ideal period. The benefits from your investments should be real to you. So the time invested along with the money has come down to 3-5 years. Earlier Indians used to keep their investments for 7-10 years or even more, because they had more of an emotional attachment to it. NRIs have changed their mindsets shifted from an emotional perspective to an investment perspective, which is what they should do. As far as international sales are concerned, Dubai has always been good for us. We have been here for 9 years now. We have been doing extremely well. The trust our investors have in us has helped us operate abroad for so long. I have established 3 international sales centre.

We are here (in Dubai) because of our trust; I have around 600 satisfied customers only in Dubai. If I were to talk about the entire GCC, I have a total of around 1,700 customers. I have another 480 customers in Singapore. We have another 100 odd customers in San Jose alone. Besides we try to make it convenient for our clients by arranging for the loans here itself. My team here can arrange everything for you; all you have to do is to come to our office. We are growing. We need to be close to where the NRIs are. Till now NRIs have not been attracted to invest back home because things were very unorganised. You did have a developer coming to you with a nice picture of an apartment. I mean it might be a very good apartment, in

India there are numerous such fancy properties. But the key for a developer is to be with the investor till the time they exit our of their investment. You should be able to guide them till they are satisfied.

Mantri did try to launch a project here in Dubai, but quit the project for obvious reasons. What happened back then? Would make another attempt now that the Dubai market is not just booming but mature? It all depends on Mr. Sushil Mantri. It all depends on what he decides. Presently Mantri is occupied developing its projects in India. I would say developing a project here in Dubai will take some time, but yes we might consider that option later; say four to five years down the line. g Gulf Property

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INTERVIEW

Westar delivers Dh270m worth of properties at JVC

Gulf Property Exclusive

ubai -based real estate developer Westar Properties is gearing up to deliver its latest development later this month, as it consolidates its position in Jumeirah Village Circle, which is poised to become the centre of Dubai city when business activities within Dubai World Central and Al Maktoum International Airport picks up.. Jumeirah Village Ciricle

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(JVC) that connects Al Khail Road with Mohammed Bin Zayed Road between Al Barsha and Jebel Ali area – is expected to become the ‘real centre’ of Dubai city with easy access to all major destinations, such as Burj Downtown, Dubai International Airport and Al Maktoum International Airport as well as Jebel Ali port and free zone. “That’s one of the reasons why we have strengthened our position at the Jumeirah Village Circle where the community is growing slowly with new developments being delivered every quarter,” Anant Golyan, Managing Director

of Westar Properties, which has already delivered close to 100 townhouses at the Jumeirah Village Circle. Although the master development was badly affected due to the global financial crisis in 2008-09, a good number of developments have already been delivered by leading developers such as Damac Properties, Al Fara’a Properties, Nakheel among others, to name a few. “However, master developer Nakheel has invested significantly in its infrastructure that has helped more and more buyers to invest in JVC,” Golyan says.”Most of

the road networks have been completed while landscaping works are going on across the development. “Nakheel is also working on to open new access and exit routes that will help ease in traffic movement. New supermarkets are opening while a shopping mall will be developed by Nakheel that will offer greater convenience to residents.” Once all these are in place, investors are going to flock to JVC due to its location and convenience. In an exclusive interview, Anant Golyan – a business and science graduate of Uni-

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INTERVIEW

tar La Residencia del Sol, was launched way back in 2007, when JVC was just a huge dessert. We were one of the first developers to break ground and complete our development in JVC.

Your company has successfully navigated out of the crisis of 2008-10 and continued to deliver projects amid challenges? What kept you going â&#x20AC;&#x201C; was it your company's firm believe in and commitment to Dubai's real estate market? There was no doubt in our minds that Dubai would bounce back, the questions was only when. As with most developers the crisis period was a very challenging time for us. With great support from our customers, we fought threw it and delivered every project that we had initiated

Anant Golyan, Managing Director of Westar Properties, at his office at Jumeirah Village Circle

versity of Southern California, elaborates his companyâ&#x20AC;&#x2122;s business and reflects on the real estate market.

Gulf Property: What is your view of the current market situation and how are you coping with the current slowdown in the market? Anant Golyan: The last two years has seen an incredible growth in the market, especially in JVC, where prices of land have almost doubled. The last quarter, has been relatively steady and we feel that this will continue for the remainder of 2015. This ac-

tually does not significantly affect us going forward. This is because back in 2012, we as a company decided to slightly alter our strategy and enter the rental market. Only 30 per cent of our portfolio will be offered for sale, with the remaining being available only for rent. Therefore, even if the markets slow down, the wheel keeps moving along, because unlike sales the rental market never completely stops.

When was Westar Properties established? Who owns the company?

Westar Properties was established in 2004 as the Real Estate arm of the Golyan Group, a family managed business house out of Nepal. The Chairman visited Dubai in 2003 and saw Dubai's potential for growth and decided to enter the market by investing in Real Estate. Soon enough, we noticed that there was a investment opportunity for a niche developer to enter the market, which led us to enter the development industry. When did you launch your first project? Our first development, Wes-

How did you manage the construction of the projects in those difficult times? One of the factors that make Westar different from other developers is that we are only a small arm of the Golyan Group. We have never been afraid of a little market volatility. We always knew that we had to complete the developments we had initiated as there was no way we could abandon them. Our company core values would never allow that. Firstly, we had great support from our customers, who even at the height of the crisis were very supportive and understanding. Secondly, all our developments were self sufficient as we did not take financing or leverage any of our lands/developments. It was predominately a cash flow issue, which we were able to overGulf Property

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INTERVIEW

come with the help our contractors who allowed us to restructure our payments to them. The rest is history. We now have close to 100 villas that are complete and occupied, with another 50 under development.

You have recently decided to change your logo. Tell us about your rebranding exercise. Westar has come a long way since its inception in 2004. Within a span of a short decade we are able to establish ourselves as a niche developer in Dubai's real estate market.

Gulf Property

Anant Golyan

As we crossed into the new decade, I felt a need for change, a need for a fresh new look. Changing a logo is never an easy decision for a company, but i think it is the right time. We are diversifying into the rental market and establishing a new image for ourselves. Focusing purely towards customer satisfaction, we have even decided to shift our offices into JVC. We feel this will make us more approachable to our customers and at the same time, help us manage our developments better. While we may have given ourselves a facelift, the core values still

remain the same.

How many residential units have been handed over so far? What is the estimated sale value of the units handed over so far? Almost 100 units, with a sale value of roughly Dh270 million. How many projects are currently been constructed? How many units will be delivered within these under-construction projects? We have undertaken another three developments already, with two more in the design

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INTERVIEW

Golyan Group

estar Properties traces its roots back to the Golyan G r o u p , founded by Sohan L. Golyan (1925-1990), is Nepalâ&#x20AC;&#x2122;s leading private sector enterprise with business interest of over $400 million. The groupâ&#x20AC;&#x2122;s activities span manufacturing, international trade, services, real estate and energy. It is anchored by an extraordinary force of over 5,000 employees. Rock solid in fundamentals, the Golyan Group nurtures a culture where success does not come in the way of the need to upholding its core values. g

pipeline. The three developments will be completed May 2015, March 2016 and August 2016 with a total of 50 4-bedroom villas. The two developments in the pipeline will consist of approximately 100 apartments, which we hope to have ready by 2019.

Who are the main contractors of your current projects? All our current developments are being constructed by Golden Wind Contracting, who have been working with us since 2008 Their support during the crisis was instru-

mental in us navigating the downturn between 20082010.

Are the new residential units being offered for sale or lease? Of the three developments under construction, only one will be offered for sale. The remaining two, consisting of 36 4-bedroom villas, are being constructed without any sales and will be offered only for rent. This is our new strategy going forward, whereby we will only sell around 30 per cent of our developments and the remainder shall be

offered only for rent.

What is the long-term gameplan of Westar Properties â&#x20AC;&#x201C; going forward, now that you have build a solid reputation in the market? Our Long-term plan is to become a house hold name in the rental market. We are testing the waters with JVC and if the model is a success, we hope to expand into other areas by building in other areas as well. The idea is to offer well managed villa communities to tenants. We feel there is a big gap in JVC currently whereby

most of the developments are not owned by a single developer, but multiple individual owners. Even with the formation of Owners Associations, landlords are not able to maintain and service the developments in a manner they need to be. This ultimately results in the villas and communities with unhappy tenants. We want to change this by focusing primarily on customer service and maintenance. We have already started implementing this in some of the villas and communities we manage, and have received a positive feedback from our tenants.

What would be the estimated value of all the properties under construction, under planning and delivered units by Westar Properties? Total value of including all three would be nearly half a billion dirhams. g Gulf Property

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DEWA launches solar panels initiative GOGREEN

Paromita Dey Senior Reporter

ubai last month launched Shams Dubai – an initiative to regulate renewable energy production and distribution – that will oversee the installation of solar panels on rooftops and pass on the benefits to consumers who host solar panels on roofs or their premises, government officials said at the event’s launch in March, 2015. The move will see rationalised electricity bill across Dubai and reduced cost of energy, which has one of the highest per capita electricity consumption in the world. The initiative will encourage tenants and building owners to install photovoltaic solar panels to generate electricity. Dubai Electricity and Water Authority (DEWA) will con-

Gulf Property

nect the system to its network. The electricity will be used onsite and the surplus will be exported to DEWA’s grid. This will encourage the use of renewable energy, increasing its share in electricity production and diversifying the energy mix. “This is one of the three initiatives we launched last year to significantly improve the services provided to partners and customers, and make Dubai the smartest city in the world during the next three years. This will enable the city’s facilities and services to be managed using smart and connected systems that enhance living standards for all of Dubai’s residents and visitors," Saeed Mohammed Al Tayer, Managing Director and Chief Executive Officer of DEWA, said. Earlier, DEWA announced the first project under its smart initiative, in collaboration with Dubai Airports, to

“We are confident that Shams Dubai will definitely regulate the generation of solar energy in buildings and their connection to DEWA’s grid. It should positively benefit Dubai and has the full support of government and private organisations.”

– Saeed M.Al Tayer, MD & CEO, DEWA

supply Dubai World Central — Al Maktoum International Airport in Jebel Ali with solar energy. The first step in implementing the initiative was installing photovoltaic panels to produce 30kW of electricity there.

DEWA’s second initiative aims to install smart meters and networks that contribute to fast-service connection, fast response, and rationalise energy use, and their third initiative is to establish the infrastructure to build 100 electric vehicle charging stations, which will be called Green Charger, this year. The move supports the Smart Dubai initiative of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai to transform Dubai into the smartest city in the world in three years through 100 initiatives and 1,000 smart services that enhance the quality of life in the emirate and achieve its sustainable development.

Shams Dubai

Shams Dubai is part of Dubai government’s move to realise its vision for developing

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GOGREEN

The Process Rooftop solar panels are going to become a reality in Dubai as the government pushes residents to become more energy conscious. However, the latest initiative will help Dubai to reduce its carbon footprint and help get a better enegy mix

Green Economy for Sustainable Development launched by HH Sheikh Mohammed bin Rashid Al Maktoum and to enable customers to install photovoltaic panels to generate electricity from solar power in buildings, and connect them to DEWA’s grid. This smart initiative also supports the Dubai Plan 2021 and the Dubai Integrated Energy Strategy 2030, to develop sustainable energy projects in Dubai, by increasing the targets for renewable energy in the emirate’s energy mix to 7 per cent by 2020 and 15 per cent by 2030. “Cost of the whole procedure will depend on a number of factors, such as whether the system is standalone or integrated into the building design, the size of the system, and the system manufacturer, retailer, and installer. It can be roughly said that the PV modules make up between 30-50 per

he connection procedure consists of four different stages, during the first stage, the specified DEWA enrolled consultant/contractor will gather all necessary general information and will then submit the online PV connection application form. DEWA will carry out the application assessment and ensure all necessary documents have been submitted and all the criteria have been met. Upon successful completion of the assessment, DEWA will issue the No Objection Certificate (NOC). In the second stage, the consultant/contractor should submit the online application for design approval. With

cent of the total installation costs. Annual maintenance fees are in the range of 0.5-1 per cent of the installation costs,” said Al Tayer. Residents and entities can submit applications with DEWA through its website free of cost, which will take approximately four weeks for approval. The only cost user will have to pay will be a meter fee of Dh1,500. The move will help the local suppliers of solar panels to market their products. “I understand that DEWA is

this application a number of technical documents need to be submitted to DEWA, such as the site plans, system design plans and details of the proposed equipment, compliance with DEWA regulations. Upon successful completion of the application assessment by DEWA, the applicant will be informed of the connection fee. Once the connection fee is paid, DEWA will begin the necessary network intervention in order to facilitate the connection process and the required construction and installation. The third stage of the process begins once the PV equipment has been laid out. However, before any electrical work is initiated, the consultant/contractor will now qualifying the vendors for selection and ours is one of those who are undergoing the process,” Prabissh Thomas, CEO of PTL Solar, told Gulf Property. “Our company is also undergoing the testing process.” Welcoming the move, he said, this will change the entire energy source mix of Dubai once implemented. “We welcome the move. It will help attract new players and investment in renewable energy and green economy,” he said.

perform mechanical completion with the concerned building authority (i.e Dubai Municipality, Trakhees) to ensure the layout is compliant with all the applicable safety regulations. Once this is completed, the necessary electrical work and installations will begin. After all the electrical work has been finalised, the applicant will have to perform the online Notification for Electrical inspection and Testing (Apply for Solar PV Connection) in order to complete the inspection of the plant and to proceed with the connection. Once DEWA finalises the assessment, meters will be installed. The final stage begins once DEWA has installed the meters and begin to consider the energy generated by the plant. g So far 19 contractors enrolled with DEWA, and will soon put out the list of consultants/contractors. “Dubai has all the capabilities to reach the pole position internationally, through innovation. We are confident that Shams Dubai will definitely regulate the generation of solar energy in buildings and their connection to DEWA’s grid. It should positively benefit Dubai and has the full support of government and private organisations,” added Al Tayer. g Gulf Property

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Dubai Metro, Union Rail to connect Dubai Hills Estate NEWSUPDATE

Gulf Property Exclusive

ubai Metro’s future developments — the Purple and Pink lines — as well as the federal Union Railway will connect Dubai Hills Estate, which is being jointly developed by Emaar Properties and Meraas, Gulf Property can reveal. Emaar Properties, which is currently developing a number of residential clusters within the Dubai Hills Estate, has recently launched 479 residential units called Acacia at Park Heights which will be offered to investors at a global sales launch on February 28, 2015. The Purple Line has been planned to connect Dubai In-

Gulf Property

ternational Airport and Al Maktoum International Airport along Al Khail Road and fast-track transit passengers between the two airports on a 49-kilometre-long track. Similarly Pink Line is expected to border the project from the other side to help ease public movement to and from the project. Meanwhile Union Railway, which will connect the UAE’s all major cities with the future GCC rail network, will also connect Dubai Hills Estate – which will increase the attractiveness of the project. This effectively means people from Saudi Arabia, Oman, Qatar, Bahrain and Kuwait will be able to directly disembark from railway to hotels or homes within Dubai Hills Estates. Dubai Hills Estate is part of the Mohammed Bin Rashid

(MBR) City – a major masterplanned mixed-use development in Dubai to be built in the empty patch of desert land located between Al Khail Road and Mohammed Bin Zayed Road starting from the borders of Business Bay and adjacent to Meydan City all the way to Dubailand. “Acacia at Park Heights is located centrally at the crossroads of Al Qudra and Sheikh Mohammed Bin Zayed Road, the city’s 12lane dual carriageway, and in easy access of Sheikh Zayed Road,” Emaar Properties said in a recent statement. “The development is only a 10-minute drive from Downtown Dubai. Residents will also have access to the Etihad Rail and the upcoming Dubai Metro Purple and Pink lines which will border the

development, enabling fast and easy connection.” Mohammed Bin Rashid City, named after His Highness Sheikh Mohammed Bin Rashid Al Maktoum, VicePresident and Prime Minister of the UAE and Ruler of Dubai, was launched in November 2012. The project will host more than 100 hotels and serve 35 million visitors a year when completed. It is part of Dubai Government’s vision to expand the city’s tourism and retail offerings and strengthen its attractions to international visitors and investors. "The current facilities available in Dubai need to be scaled up in line with the future ambitions for the city. Therefore we have to start work immediately on the third phase of development that is

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NEWSUPDATE

An artist’s impression of Acacia by Emaar at Park Heights in Dubai Hills Estate

“Acacia at Park Heights, the new residential project within Dubai Hills Estate, will be a value investment for regional and international investors, with the residents set to become a part of an exciting community.” – Ahmad Al Matrooshi, Managing Director, Emaar Properties aligned to our Vision till 2030 and boost the UAE economy to enable it to enter a new era in which it will become the capital of entrepreneurship arts, culture, and family tourism for over 2 billion people,” Sheikh Mohammed said at the project’s announcement Since its launch, Dubai Hills Estate was unveiled as a joint venture as well as MBR District One – another joint venture between Meydan LLC and Sobha LLC. Development works at both the projects are going in full swing as investors see more opportunities in real estate in Dubai. Ahmad Al Matrooshi, Managing Director of Emaar Properties, said, “Dubai Hills Estate, an elegantly designed smart city hub within MBR City, is one of the pop-

ular destinations today for residential end-users and investors. The development is fast coming to life offering exceptional lifestyle choices for its residents. “Acacia at Park Heights, the new residential project within Dubai Hills Estate, will be a value investment for regional and international investors, with the residents set to become part of a thriving neighbourhood. The access to outdoor activities will be a great incentive for the home-owners, who will also benefit from the central location of the project.” The multiple rail-line connection will be an added attraction to MBR City and the components within the township and will help draw a large number of visitors to the project and help invest-

ment, analysts say. “If all the three rail line connects MBR City – it will be one of the most connected townships within Dubai – which itself is well connected to the rest of the world by air,” said a property analyst, requesting anonymity. “Connectivity and ease in traffic movement will help it to tap more investors.” In his remarks, Sheikh Mohammed had highlighted that the current accelerated growth rates require Dubai to start immediate preparations for the future because within just six years, the number of passengers passing through Dubai airport will reach more than 90 million people. "Our development initiatives concerning infrastructure in all sectors should be aligned with this growth rate and we have the determina-

tion to reach our objectives and be the first in the region to achieve them," Sheikh Mohammed said. MBR City will include Mohammed Bin Rashid Gardens project and will be connected to Downtown Dubai and Business Bay through a crossing that will be named the 'Cultural Crossing' which will include art galleries and create the largest area for arts in the region. MBR City will feature a massive park which will be 30 per cent bigger than Hyde Park in London. It will be surrounded by the largest mall in the world called Mall of the World, which will be capable of receiving 80 million visitors a year, and include over 100 hotels to meet the requirement for accommodation of the visitors. g Gulf Property

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Town Square offers urban living for Dh1m

NEWSUPDATE

Paromita Dey Senior Reporter shama, a Dubaibased developer, is offering townhouses for Dh1 million – the most lucrative price for such properties as the real estate market in Dubai softens. Nshama’s Town Square – a mixed-use masterplanned community – makes townhouses more affordable to investors and end-users and is expected to lure investors to the property market.

Gulf Property

Spread over about 750 acres, Town Square will comprise of 3 and 4-bedroom townhouses and midrises with 1, 2 and 3-bedroom apartments offering value across all touchpoints. A sustainable and connected community, it focusses on promoting an active outdoor lifestyle, as well as arts and culture. The project will feature over 3,000 townhouses and 18,000 apartments in addition to substantial retail, hospitality and commercial space. The masterplan also envisages a central hub with shopping

and dining districts, plazas, green belts, mosques, educational institutions, healthcare centres, entertainment and outdoor sports facilities. With a total land area of 31 million square feet, it will have a high land-to-building ratio, thus opening up more open spaces for a greener community. The community will also feature outdoor gymnasiums, skateboard parks, children’s play areas, relaxing green spaces, community swimming pools and access to cycle tracks that complement the popular Al Qudra cycle track.

The company’s maiden project, will redefine the city’s property sector, claims Fred Durie, Chief Executive Officer of Nshama. The project is centrally located in New Dubai near Al Barsha, in easy proximity to popular malls as well as Al Maktoum International Airport, which is less than 20 minutes away. “Town Square redefines the concept of integrated neighbourhoods in the city. With all amenities in walking distance, it showcases the best of everything that Dubai has to offer in one inspiring community development like

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no other,” said Durie, a former senior executive of Emaar Properties. “It will comprise of 3000 townhouses spread over 10 gated communities, which is three times the size of Downtown Dubai. We will ensure that we have good connectivity within all the units, and will also offer free WiFi to all our residents,” Durie says.

Zahra Townhouses The

developer

launched

Zahra Townhouses in the first residential phase in Town Square, and offers the choice of 3 and 4-bedroom homes starting at Dh999,888. Nshama has joined hands with three financial institutions – Noor Bank, First Gulf Bank and Abu Dhabi Islamic Bank – for home financing services, further adding to the convenience of potential owners. “The Zahra community will be located to the north of the development, it will accommodate over 300 units. There will be 14 community gardens, 6 kilometres of

dedicated jogging parks and 3.2 kilometres of cycling routes, along with plenty of food and beverage options,” Durie says. “We did an extensive feasibility study and it showed that there are people between Dh20,000-35,000/per month salary bracket who are presently renting and would love to own a property. What we are trying to do is to fill the gap by building properties at a lucrative price. Initial units will be available for less than a million dirhams, well within the reach of this salary bracket.

It is a first step for Dubai, where the middle income people can enjoy great facilities in a community at reasonable prices.” Zahra Townhouses will be smartly planned with 3-bedroom townhouses ranging in size from 200 to 208 square metres, while four-bedrooms are at 225 square metres. All units will have balconies with most of them opening to the green vistas enveloping the community. The townhouses also have a private rear garden, room for domestic help, open bistro kitchen layout, storage utility areas and covGulf Property

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ered garage. The units will be located within walkable distance from the main Square, which has several retail, food and beverage and leisure outlets. Further, it is located near the entrance of the project, near Al Barsha, in easy proximity to popular malls as well as the Al Maktoum International Airport. Price per square feet will cost Dh600, which, according to Durie is very competitive in the current real estate market in Dubai. “We have worked hard towards creating a community project which can be offered at reasonable rates without spending much from our end. It will give the people from the middle income bracket an opportunity to buy their dream home, which they didn’t have before.” The payment plan also promises to be quite competitive, 10 per cent down payment, then the next 50 per cent in the first 15 months and the rest 40 per cent can be paid as and when the

Gulf Property

“Town Square redefines the concept of integrated neighbourhoods in the city. With all amenities in walking distance, it showcases the best of everything that Dubai has to offer in one inspiring community development like no other,”

– Fred Durie Chief Executive of Nshama

construction is being done. “We are not going the 1 per cent way because that will definitely increase the prices in all verticals. We are trying to keep the prices as low as possible because we want people to come and buy,” said Raghuraj Balakrishna, Chief Financial Officer of

Nshama. The cost of the entire project hasn’t been finalised yet, but the first 1,000 townhouses will cost Dh1 billion, which will be delivered in third and fourth quarter 2017 and has already been tendered. The entire project is planned for completion in a

10-year span. Levelling the earthworks has already commenced, the infrastructure work will start at the end of March, and then in June, the main construction of the townhouses is scheduled to start. The 18,000 low-rise G+6 and G+8 apartments are still in the designing stages

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and the developer will soon be issuing the tender for construction of these apartments in the development, located close to Arabian Ranches.

Why buy in Town Square?

In addition to pricing, the location and the master-planning are some of the unique selling points of Town Square, Durie says. “Come to Town Square, not only because it is a great lifestyle community, but it is well within the reach of middle income group,” he says. The company promises to deliver 3,000 units per year following the completion of the first phase. The project is being developed by a team of professionals who bring over 100 years of collective experience in developing and delivering integrated communities in Dubai and other international markets, Durie said. “We are a different niche in the normal market, there are lots of high-end 1000+ square feet develop-

ments available, but you could hardly find any that are available at less that Dh600 per square feet.” The developer has also joined hands with Vida Hotels and Resorts, the new generation hotel brand of Emaar Hospitality Group, to operate a lifestyle boutique Vida hotel and serviced residences in Town Square. On the funding issue, Balakrishna said the company would use proceeds from off-plan sales and has financing facility, if needed from banks. “We are looking at the proceeds from the sales and whatever shortfall will be there, we have arranged for it internally and from the banks. We have been able to do things efficiently and not had to spend much to get the things done.” The demand for premium residential and commercial properties will always remain high in Dubai. But in the long run, winners will be those who reap the benefits from developing or trading in affordable projects, since the

budget properties segment is as promising as the elite segment, and the former will only grow further with a rapidly increasing customer base. “I think once we announce the prices for the apartments, it will show the affordability of the product. There is a huge demand for an affordable community product and we are sure that we will do well in the market. I can predict some good sales happening for our townhouses and the apartments,” said Durie. Lastly, Durie also claims that the secret behind keeping the prices at an affordable level is their value engineering and efficient space planning, since the developer is focussing more on high quality middle income housing. The company is also developing another value-added lifestyle development in Dubai that focuses on sustainability, culture and education through a joint venture with Mohammed Bin Rashid Al Maktoum Foundation (MBRF). g

At A Glance Dh999,888

price of a townhouse at Town Square

3,000

number of townhouses being built by Nshama

18,000

number of apartments to be developed at Town Square

Dh1 billion

cost of developing 1,000 townhouses by Nshama

750

acres of land to be brought under Town Square project

31 million

square feet of land area would be covered by Town Square development Gulf Property

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Art Marine will manage ‘The Heart of Europe’ NEWSUPDATE

Indrajit Sen Senior Reporter

hen the economic recession befell Dubai in 2008, it did not spare many ambitious real estate projects at the time. Construction of most were halted, the others were stopped completely. ‘The World’, an unprecedented property development, comprising 300 man-made islands representing the map of the world, ran into similar troubles. Most parties to

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whom Dubai-based master developer Nakheel sold the islands of ‘The World’, began to quit the market one after other due to financial perils. Dubai-based Kleindienst Group, who had bought a couple of islands, however went ahead with their plans of creating ‘The Heart of Europe’ within The World, an ultra-luxury project that the developer announced in 2009. Despite the odds, including a financial dispute with Nakheel, and a roadblock over permissions for their underwater villa project. according to media reports, Kleindienst Group held on. Last year the developer an-

nounced that construction of the project, spanning six islands ‘with each island taking inspiration from some of Europe’s most captivating locations’, was underway.

‘The Heart’ is throbbing!

And Kleindienst Group is showing some real progress too, as it is steadily working on various aspects of The Heart of Europe project, which includes islands named after mainland Europe, Germany, Sweden, Monaco and St Petersburg. On the sidelines of the Dubai International Boat Show in

March, Kleindienst Group inked a deal for the marina management of The Heart of Europe, with luxury marine enterprise Art Marine. As part of the memorandum of understanding, Art Marine, which caters to the leisure yachting market in the region, ‘will bring their knowledge of operating marinas, acting as an advisory during the development phase of The Heart of Europe, and operate them upon completion of the various phases, the company said. Greg Stinner, CEO of Art Marine said, “Our job is to primarily assist (Kleindienst Group for the marina man-

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agement, as well as in designing the layouts and the overall concept,” Stinner said. “Since the project comprises a number of islands you would take it very carefully because it is a matter of depth when it comes to the shoreline. You will have to respect all the (environmental) regulations as safety is another issue,” he told Gulf Property soon after signing the deal with Kleindienst. As part of the agreement, Art Marine’s assistance to Kleindienst Group is twofold. As Stinner puts it: “One is to assist them in the design and the specifications. Secondly, once the project is

put into operation, to manage the marina; as we have been doing already in many other projects.” He adds, “It is a destination by boat and not by road. Therefore I think the maritime aspect, which includes the transport around the islands, is important and requires boats. And since the project is very exclusive, it needs the most exquisite boats, and that is where we come in.” ‘All clients who purchase a villa will be offered the enviable option of receiving an exclusive Riva ISEO (a luxury yacht brand), part of the overall sales package when

purchasing a sizeable property at The Heart of Europe, Art Marine and Kleindienst Group is promising. Given the present slump in transactions in Dubai’s property market however, how successful will a super-luxury project as ‘The Heart of Europe’ be, one wonders. “I believe that the properties on The World, in particular the ones which Kleindienst is developing as the ‘Heart of Europe’, is the highest end of real estate,” Stinner believes. He explains: “From what I have witnessed is that in the last two years, there has been a rebound (of the market). I think proof of that are

sales; price levels may vary, volumes may vary. But at the end of the day you see the big developers coming back. I would say prime locations and prime properties are moving.” But how does Art Marine gain from the growth of the luxury property market in Dubai? Stinner correlates saying, “That’s a good sign for us in the luxury industry. If that confidence level has come back, then demand to purchase high-end properties, specifically in good locations, will rise again. Hopefully that will translate also to adopting the habit of luxury lifestyle, and with that comes boating!” g Gulf Property

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GULFTOURISM

UAE tourism sector to hit Dh323bn by 2030

Gulf Property Exclusive

he value of the combined economic activities of aviation and tourism sectors are expected to hit $53.1 billion (Dh194.87 billion) by 2020 and $88.1 billion (Dh323.32 billion) by 2030, according to a report by Oxford Economics. The value of Dubai’s top 10 tourism and aviation-related projects to hit $40 billion (Dh146 billion) These massive-scale activ-

Gulf Property

ities are expected to create 1.2 million jobs, the report said. According to Ventures Middle East, more than $4.41 billion (Dh16.18 billion) worth of hospitality projects were completed last year. This year, $5.86 billion (Dh21.5 billion) worth of hospitality projects are expected to be completed, according to their research. The aviation sector expansion is also supporting the country’s tourism development agenda with Dubai International expected to welcome 126.5 million passengers by 2020, the huge Al Maktoum International site

set to eventually accommodate up to 160 million passengers per annum, and continued network and fleet growth of the UAE’s airlines. This would require largescale investment in facilties and projects. Among some of the projects under development include the $5.8 billion Mall of the World development, which will be the largest retail destination on the planet, complete with a dedicated wellness hub; the $9.1 billion Al Habtoor City complex, with St Regis, Westin and W Hotels; and Emaar’s $8 billion Cultural District. In total the UAE has

earmarked 18 museums and cultural initiatives, 88 retail developments, 24 theme parks, 15 sporting venues, 17 convention centres and 7 theatres. To keep pace, the country’s hotel pipeline is also set to grow substantially with data research house STR Global reporting a total of 144 hotels and resorts in the active pipeline with a planned count of 40,142 rooms, which according to the latest Alpen Capital report, is less than a third of the 140,000+ rooms actually required, so doubtless there are many more projects launches in the off-

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GULFTOURISM “If you consider the fact that the top 10 tourism projects in the emirates represent a collective investment of just under $40 billion (Dh146 billion), the local tourism and hospitality industry is going to accelerate to another level entirely...”

– Nadege Noblet, Exhibition Manager of Arabian Travel Market

At A Glance

Dh194 billion

value of tourism and aviation-related activities in Dubai by 2020

Dh323 billion value of tourism and aviation-related activities in Dubai by 2030

1.2 million

jobs are to be created by tourism and aviation-related activities by 2020

Dh146 billion value of the top 10 tourism related projects in Dubai

Dh116 billion value the UAE’s tourism sector activities

ing. According to the World Travel and Tourism Council, the UAE will retain its position as a regional tourism leader, with the sector valued at $31.8 billion (Dh116.7 billion) by the end of 2018. “If you consider the fact that the top 10 tourism projects in the emirates represent a collective investment of just under $40 billion (Dh146 billion), the local tourism and hospitality industry is going to accelerate to another level entirely,” Nadege Noblet, Exhibition Manager of Arabian Travel Market, the largest travel and

tourism show in the Middle East and North Africa. According to the Q3 2014 Alpen Capital GCC Hospitality Industry Report, in the last 10 years the UAE has emerged as the preferred regional destination for leisure as well as business tourism. Its tourism receipts have increased at a CAGR of 12.4 per cent between 2004 and 2013 and its share of the total GCC receipts increased from 30.2 per cent to 41.4 per cent over the same period. “With the UAE securing highly visible ‘mega events’ such as the upcoming World

Expo 2020, the sector is developing rapidly and this presents numerous opportunities for the Dubai Department of Tourism and Commerce Marketing to realise its forecast of 16.5 to 18 million leisure and three to four million business visitors by the end of the decade,” said Noblet. Meanwhile, tourism sector adds US$7.6 billion to Qatar’s economy, another report said. Projects totaling $8.48 billion are currently underway that will set Qatar up as a major tourist and venue attraction, including Doha Festival City, Doha Convention Centre, Rayyan Mall (Mall of Qatar), Doha Zoo, Lusail Museum, Katara Towers (Lusail Marina), and not forgetting the FIFA World Cup football stadiums, home to the FIFA World Cup in 2022. g

Dh16 billion

value of tourism projects completed in Dubai in 2014

Dh21.5 billion value of tourism projects to be ready in Dubai in 2015

126 million

passengers expected to pass through Dubai airports annually by 2020

160 million

passenger capacity of Al Maktoum Int’l Airport

140

hotels are being built

140,000

hotel rooms required in the UAE by 2020 to cater to the increased number of tourists Gulf Property

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25% MENA travellers seek luxury facilities GULFTOURISM

ne in every four residents in the Middle East and North Aftica (MENA) region opt for luxury accomodation while 20 per cent choose to fly first or business class for leisure, according to a survey by YouGov. The number of wealthy families making travel a highspend priority is on the rise, the survey finds. The latest YouGov report finds that the top three luxury holiday destinations for MENA residents are UAE (14%), Italy (10%) and Turkey (5%). Top-end hotels look set to profit from this

Gulf Property

trend with over a third of MENA residents usually staying in luxury hotels when traveling for leisure. Looking at a region-wide breakdown, 27 per cent of GCC residents and 23 per cent of Levant residents stay in luxury hotels compared to 17 per cent of North African residents. Meanwhile, in terms of specific countries, 34 per cent of Bahrain residents usually stay in luxury hotels – the highest percentage in the entire MENA region. “This trend for luxury family travel offers opportunities for tour operators to create tai-

lor-made packages that take into account not only family needs, but also the cultural considerations unique to the MENA region, and this opens up tremendous marketing opportunities. Luxury, and family luxury travel in particular, is a trend to watch, and one that will be covered extensively at this year’s show,” said Nadege Noblet, Exhibition Manager, Arabian Travel Market (ATM) - the largest travel and tourism show in the Middle East and North Africa. “Over half of MENA residents arrange all aspects of family travel themselves, yet

72 per cent of MENA residents would book an all-inclusive luxury package if they were available. This is a phenomenon that has not as yet manifested itself in the GCC, apart from the Rixos Bab Al Bahr in Ras Al Khaimah; although it has long been a cost-friendly family option in Egypt’s key coastal destinations,” she added. As per the YouGov survey, the words judged to best describe luxury travel are differentiation (33%), discovery (31%) and exclusivity (27%). With MENA residents primarily choosing to stay in four or five-star hotels, and

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20 per cent flying first or business class, family travel budgets are some of the most generous, with 17 per ccent of residents spending between US$3,000-5,000; 9 per cent spending US$5,000-7,000; and 14 per cent spending over US$7,000. “MENA residents are extremely discerning when looking at luxury family travel, and the ATM 2015 luxury-focused seminars will give industry professionals the opportunity to examine how to cater to this important tourism sector,” said Noblet.

ATM

Research conducted by Reed Travel Exhibitions in London, has revealed that the annual Arabian Travel Market, which takes place in Dubai each May witnessed more than 2,700 exhibitors sign business deals worth more than $2.1 billion with 23,500 visitors at the 2014 event. Family centric travel, which accounted for more than 12.5 per cent of the $1.07 trillion global tourism market, has been selected as the official show theme for this year’s event, which takes

place at the Dubai International Convention & Exhibition Centre from 4-7 May 2015. Arabian Travel Market is a part of The World Travel Market Portfolio, consisting of four leading business-tobusiness travel trade events, which has facilitated more than $6.5 billion (£3.9 million) the latest research has revealed. World Travel Market is the WTM Portfolio’s largest and longest running event spanning 35 years with 5,000 exhibitors and 50,000 participants. World Travel Market 2013 was responsible for $3.7 billion (£2.2 bil-

lion) in industry contracts for exhibitors negotiating business deals with more than 8,500 buyers. Examples of business deals conducted at WTM 2013 include London West End Theatre ticket company Encore, which signed contract worth $8.3 million. A poll of World Travel Market exhibitors and buyers revealed more than one in two expects to conduct more business of a greater value at this year’s event than they did in 2013. This should see the WTM Portfolio facilitate deals approaching a value of $7 billion for 2014. g Gulf Property

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Jumeirah to open 2nd hotel in Turkey D ubai-based luxury hotel operator Jumeirah Group, a member of Dubai Holding, said it has signed a management agreement with Targets Investment Turizm Isletmeleri AS to operate a luxury hotel in Bodrum on Turkey’s Aegean coast. Following the signing of the agreement, the hotel formerly known as the Golden Savoy will be operated under the Jumeirah brand as Jumeirah Bodrum Palace Hotel, Turkey, with an official opening scheduled for 1st May 2015. The hotel is situated ap-

Gulf Property

proximately 10 minutes from Bodrum city centre, nestled in the natural beauty of Zeytinlikahve Cove, and 20 minutes from Bodrum International Airport. It is an extravagantly designed luxury hotel consisting of 135 rooms made up of generous suites, luxuriously appointed villas and a sixbedroom Palace. The property covers 110,000 square metres of landmass and includes a wide range of restaurants, lounges and bars, a Talise Spa with 12 treatment rooms, a number of highend shops and 57 swimming pools with the majority as-

signed to the private villas. Every suite and villa offers commanding views over the Aegean Sea. One of the highlights of Jumeirah Bodrum Palace Hotel is ‘The Palace’, a 2,000 square metre palatial residence with uninterrupted sea views, consisting of six deluxe master bedrooms, each with an ensuite and Jacuzzi, a private indoor and outdoor pool with sea water facility, a finely crafted traditional Turkish hammam and sauna, its own exclusive pier and private beach with cabanas. The Palace also has a royal living room and dining room, an entertainment

patio and sundeck. Guests have twenty-four hour access to a dedicated butler service. Jumeirah Group has appointed Mete Atakuman as General Manager of the hotel. An Australian-Turkish citizen, Mete was previously General Manager of Jumeirah Bilgah Beach Hotel in Baku, Azerbaijan, before which he worked for a number of international brands including Hyatt, Starwood and Hilton. Tourist arrivals in Turkey during 2014 exceeded 40 million, of which 4.3 million visited Bodrum. Jumeirah Group already has a pres-

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GULFTOURISM

Jumeirah pipeline

ence in Turkey, having successfully operated the historic Pera Palace Hotel Jumeirah in Istanbul since 2011. “Having opened as the Golden Savoy in 2014 and enjoyed a successful first season, we are delighted to welcome Jumeirah Group as the new operators,” Vedat Dalkiran, Chairman of Targets Investment Turizm Isletmeleri AS, said in a statement. “The company’s brand reputation, commercial prowess and understanding of luxury hospitality will lift the hotel to the next level of performance and bring a

new wave of discerning luxury travelers to this magnificent hotel.” When the hotel opens in May 2015, the Jumeirah Group portfolio will consist of 23 hotels ranging from the flagship Burj Al Arab in Dubai to iconic properties in London, Frankfurt, Mallorca, Rome, Istanbul, Baku, Dubai, Abu Dhabi, Kuwait, the Maldives and Shanghai. The company has a further 26 hotels under contract or in development in the Middle East, Asia and Europe. Gerald Lawless, President and Group CEO of Jumeirah Group, said: “To have the opportunity of extending our

brand presence in Turkey is a key strategic development for Jumeirah. To be doing so with such a magnificent hotel on the Turkish Riviera gives us every confidence that our loyal Jumeirah guests will find the same quality of experience that they have come to associate with our hotels around the world.” Jumeirah Hotels and Resorts manages properties in Dubai and Abu Dhabi, UAE, and Kuwait in the Middle East; Baku, Frankfurt, Istanbul, London, Mallorca (Spain) and Rome in Europe; the Maldives and Shanghai in Asia. g

umeirah Group has an an ambitious hotel development pipeline that will expand its global footprint to more than 50 hotels in the next few years. Following is a list of the new hotels to be operated by the Dubai-based hotel operator: Jumeirah Gamsha Bay Resort, Egypt The luxurious, 250-room Jumeirah Gamsha Bay Resort will be located in the Palm Gamsha, an integrated community of over 20 man-made islands forming the shape of a seahorse, on the Red Sea, Egypt. Jumeirah at Saraya Aqaba, Jordan Jumeirah to manage three hotels and a water park at the Saraya Aqaba development in Jordan. Jumeirah Marrakech Golf and Polo Resort, Morocco The Jumeirah Marrakech Golf & Polo Resort is located seven kilometres to the south of Marrakech in the lee of the Atlas Mountains. The resort offers a five-star deluxe hotel and 10-hole golf course with a clubhouse and academy. Jumeirah at Saraya Bandar Jissah, Oman Jumeirah at Saraya Bandar Jissah will consist of two hotels, one consisting of 206 rooms and the other of 106 rooms, located in the picturesque cove of Bandar Jissah, near Qantab, nestled between the Hajjar Mountains and the Gulf of Oman. g Gulf Property

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SPOTLIGHT

Roxana Jaffer gets award

oliday Inn Dubai – Al Barsha has announced that Roxana Jaffer, the hotel’s CEO and Director of Sovereign Hotels (BVI) Ltd, has been honoured with two leadership awards in India and the UAE recently. Jaffer was conferred with the ‘Global Inspirational Leadership Awards 2015 for Outstanding Leadership’ at the Women Leadership Achievement Awards 2015 hosted by the World Women’s Leadership Congress (WWLC) at the Taj Lands End hotel in Mumbai, India on February 14. Jaffer was also honoured with the ‘Best Woman in Hospitality UAE’ at the Women Leaders in UAE Award on February 25. She was chosen by an international panel of eminent jury on the parameters of Leadership, Ethics, Interpersonal Skills, Charisma, Visionary, A Change-Agent and Business Acumen, the company statement noted. Roxana Jaffer said, “It is humbling to know that as a leader, standing in for what’s right and displaying courage to uphold my convictions, that I should be nominated.” Under Roxana Jaffer’s dynamic leadership, the Holiday Inn Dubai – Al Barsha has become a recognised partner of the United Nations World Food Programme. g

Gulf Property

Al Zorah gets award

is Highness Sheikh Humaid bin Rashid Al Nuaimi, UAE Supreme Council Member and Ruler of Ajman, has awarded Al Zorah Development Company for its ‘unique efforts in developing a long-lasting imprint in the transformation of Ajman’s urban landscape’, a company statement said. Al Zorah Development Company is a joint venture between the Government of Ajman and Lebanese developer Solidere International. Located along the natural peninsula on the coastline of Ajman, Al Zorah, the flagship project of Al Zorah Development Company, is spread over an area of 5.4 million square metres. ‘Ajman’s premier waterfront and organically connected lifestyle development project, Al Zorah has rapidly estab-

lished itself as a distinctive masterplan that sets itself apart as a development that brings a waterfront lifestyle focused on the wellness of its residents’, the statement read. Imad Dana, Chief Executive Officer of Al Zorah, said,

“In this context, the Al Zohra project, once completed, will provide a foundation of enhancing the liveability of Ajman and make it more attractive, both from an investor and resident point of view and from a tourist perspective.” g

halaf Ahmad Al Habtoor, the Chairman of UAE business conglomerate Al Habtoor Group, honoured his staff at Al Habtoor Groups annual ‘Employee Excellence Awards’ on March 10, 2015. The event, organised at the Habtoor Grand Beach Resort and Spa in Dubai, was also attended by Sultan Al Habtoor, President, Al Habtoor Motors; Mohammed Al Habtoor, Vice Chairman and CEO of Al Habtoor Group and senior management officials, a press release from the company stated. The Employee Excellence Awards brings together staff from all the company’s units,

including Al Habtoor head office, Habtoor Hotels (Habtoor Grand Beach Resort & Spa, Autograph Collection, The Metropolitan Palace, The Metropolitan Deira Hotel), Metropolitan Catering Services, Al Habtoor Motors, Dia-

mondlease and Emirates International Schools (Jumeirah and Meadows). The Chairman presented a total of 24 awards to commend the high performers in the Group, the press statement noted. g

Khalaf Al Habtoor honours employees

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SPOTLIGHT

‘Phenomenal response’ for Dubai Property Show London: Organiser

or than 60 real estate companies showcased Dubai’s real estate at the inaugural edition of the ‘Dubai Property Show’ in London who have received strong response, organisers Sumansa Exhibitions told the media. Held at London’s Olympia from February 27 to March 1, the exhibition also offered thousands of properties, educative seminars for investors and ‘dazzling displays’ of some of the new property launches in Dubai. The organisers estimate that the Dubai Property Show witnessed a footfall of over 6,000, three times higher than what it expected. Participating realtors and brokers also ’observed brisk business and high number of enquiries’ during the expo, the statement noted. “The first ever Dubai Property Show was a huge success. We are extremely proud and overwhelmed with this extraordinary response that we have received over the 3 days of exhibitions,” Sunil Jaiswal, President, Sumansa Exhibitions reportedly said of the exhibition’s success. “It virtually brought out the best Dubai has to offer and the stunning display of properties just wowed the visitors plus the educative seminars guiding potential buyers on their purchase were highly appreciated.” The overall feedback from visitors as well as the exhibitors has been quite amazing, Jaiswal said following the conclusion of the event.

According to the Dubai Land Department’s data, British investors made the third highest foreign investment in 2014 in Dubai’s property market, with 3,747 transactions worth Dh9.31 billion. Also, with Dubai now becoming the third most preferred destination to invest in for British investors, the Dubai Property Show ’provided the opportunity to find out about every aspect of investing in Dubai’. g

What the partcipants said in London:

“Our participation at the Dubai Property Show in London showed a civilised and honourable image of our country, our history and our heritage in one of the important cities in the world. With a view to market Dubai all over the world, and to promote the real estate market in order to achieve the vision of Dubai Land Department, is consistent with our strategic plan 2021.” – Sultan Butti Bin Mejren, Director General of Dubai Land Department

“London has always been a target market and Emaar has had a lot of successful launches in the past. The participation at the show was really successful and we had

some good transactions on the first day itself”

we received for our flagship development.”

“Dubai is a popular investment destination for British property seekers who are attracted to its tax-free economy, safe and secured living environment, and high standard of living. The Dubai Property Show was an excellent gateway for us to reach out to genuine investors and buyers. Dubai Properties’ registered around 4000 visitors over the 3 days of the event.”

“Lot of Londoners are looking to move to Dubai and are searching for quality of life set in lush green destination like Al Barari – passion for life.” – Dereck Alexander Jon Hoogenkamp, Sales and Marketing Director, Al Barari

– Ibrahim Abdallah, Head of Sales – International, Emaar Properties PJSC

– Abdulla Abushabieb, Executive Director, Dubai Properties

“Dubai Marina has been a preferred location for UK investor, which was evident from the response

– Hisham Elassaad, Head of Sales, Select Group

“Our aim in participating in the Dubai Property Show in London is to draw attention to the unique lifestyle that is on offer in the northern emirates, and particularly Al Hamra Village. Once again, we’ve been overwhelmed by the response we have received in London” – Barry Ebrahimy, Head of the Commercial at Al Hamra Real Estate g Gulf Property

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SPOTLIGHT

Accor opens Aparthotel in Dubai

rench hotel operator Accor Group launched another hotel apartments property in Dubai. Aparthotel Adagio Premium, the latest brand in Accor’s portfolio, opened in Dubai’s Al Barsha district, and consists of 198 serviced apartments – 72 one-bedroom, 76 two-bedroom, 35 three-bedroom and 15 four-bedroom – across 41 floors. The hotel apartments complex is only the second property under the Aparthotel Adagio Premium brand and also the only property in Accor’s portfolio to provide all four room types, the company said. The hotel apartments are within walking distance from the Sharaf DG metro station, and is close to tourist attractions such as the Burj Khalifa and Dubai Creek. g

Gulf Extrusions gets safety award

ulf Extrusions (Gulfex), a Dubai-based manufacturer of extruded aluminium products, has been awarded the Gulf Aluminium Council (GAC) Health and Safety Award, the company said. Gulf Extrusions received the award at a ceremony held in March in Bahrain. The company was recognised for ‘implementation of excellent health and safety initiatives and its significant contribution towards the efforts to achieve key sustainability in the Gulf region’ a statement from the company said. g

Dubai Chamber honours entrepreneurs ubai Chamber of Commerce and Industry organised a special awards ceremony to honour global winners of the Youth Business International’s ‘Young Entrepreneur Awards’ at the Park Hyatt hotel in Dubai in March, the media has been told. The ‘Young Entrepreneur of the Year 2015’ was presented to Viola Lam, an entrepreneur from Hong Kong who is running FS Education, specialising in a unique form of teaching mathematics using images, helping students to grasp concepts much quicker than via traditional methods.

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Li Feng of China received the ‘Mentor of the Year’ award while the category awards went to Arun Awatade, ‘Social Entrepreneur of the Year’ for developing more sustainable forms of agriculture by using plastic mulch, Susan Ogwengo, ‘Start-up Entrepreneur of the

Year’ for setting up a day care centre for children of working mothers, and Sonal Patil, ‘Woman Entrepreneur of the Year’ for restarting her garment manufacturing factory devastated by a fire, the statement mentioned. The Young Entrepreneur of the Year awards were also

presented to three finalists including Judith Mendoza of Peru for her business of creating products from natural salt, Kendal Netmaker from Canada for setting up a lifestyle clothing brand, and Igor Zaboev, from Russia for his recycled household waste business. g

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