Gulf Property November 14 by Gulf Property

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

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VOL. 7, NO. 2 NOVEMBER 2014

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EXCLUSIVE INTERVIEWS Mohammed Al Habbai, Dubai Properties Sultan Al Qadi, RAK Properties Yousuf Kazim, Jumeirah Golf Estates Mohammed Nimer, MAG Group Mahesh Tourani, Indigo Properties Iseeb Rehman, Sherwoods Mohsen Kamel, Azizi Investments Imad Dana, Al Zorah Barry Ibrahimy, Al Hamra Real Estate

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EDITORIAL

Dubai Holding-Emaar partnership will go a long way in redeveloping Dubai’s growing skyline Despite a lull in sale, developers are launching projects as well as awarding construction contracts – as mid- to longterm growth outlook remains strong

CONTENTS

REALTYBYTES

Tebyan and Swarovski to Sparkle Dubai skyline 40 Damac fast-tracks sales and delivery activities 44 Al Barari adds new elements to the botanical garden 54

EXCLUSIVE INTERVIEWS Yousuf Kazim, General Manager elaborates on

FOCUS

Dubai Properties unveils major master-planned communities to expand Dubai’s skyline 18 Dubai Holding ropes in Emaar Properties to develop parts of the Lagoons project 24

EXCLUSIVE

NEWSUPDATE

he latest partnership announcement by Dubai Holding and Emaar Properties to develop parts of the stalled Lagoons project will go a long way in re-developing Dubai’s growing skyline. This reflects a shift in strategic thinking among the major developers and turn them from competitors to partners – something Dubai needs and will help the emirate to accelerate its urban development plan. In addition to this, Dubai Properties, the property development arm of Dubai Holding, has finally started works on the Cultural Village - with Dubai Wharf development. Wasl, another major developer and manager of a large pool of properties, said, it will develop 15 luxury hotels in the emirate - to meet the growing demand for hotel rooms ahead of the World Expo 2020 exhibition, when Dubai’s hotel guests are expected to double to 20 million annually, from the current 10 million. With this issue, Gulf Property continues its difficult journey towards serving the region’s real estate fraternity with increased market penetration. I am pleased to announce that your favourite publication is gaining grounds amongs the property developers, brokers and industry observers. With this edition, we strengthen our journey into the seventh year with renewed confidence as the worst for us and the real estate sector – is over. In this issue of Gulf Property, we interviewed a number of industry heavyweights and veterans, including Mohammed Al Habbai of Dubai Properties, Yousuf Kazim, General Manager of Jumeirah Golf Estates, Mohammed Nimer of MAG Group, Mohammed Sultan Al Qadi of RAK Properties, Mahesh Tourani of Indigo Properties, Adil Toubia, CEO of Al Ghurair Investments as well as Mohsen Kamel, CEO of Azizi Investments, Barry Ibrahimy of Al Hamra Real Estate Development, among others. As Gulf Property continues its journey in to the seventh year, we move ahead with firm conviction. I take this opportunity to thank all our subscribers, advertisers, contributors and partners for their support in our six years of difficult journey. At this critical juncture in our history, I am glad to announce that we have quadrupled our print run to 20,000 copies to reach a wider audience as we move from a business-to-business magazine towards a business-to-consumer publication.

– T. Akhtar

Emaar Properties sells Dh10.5 billion worth of projects during the first 9 months of 2014 28 Wasl Hospitality to develop 15 hotels by 2020 30 Azizi Developments to deliver 5 towers, worth Dh700 million 32 MAG Group develops Dh15 billion worth of projects 34

HERITAGE

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

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Carol Fernandes c.fernandes@panasian1.com

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T. Akhtar Pan Asian Media MFZ LLC

Redwood 46 Indigo Properties’ Mahesh Tourani upbeat about Zen 50 Imad Dana explains why Al Zorah will be a major buy 56 Barry Ibrahimy speaks of Al Hamra’s new projects 58 Adil Toubia reveals Al Ghurair’s plans to redevelop land bank 61 Iseeb Rehman on Sherwood’s expansion plan 64 Sultan Al Qadi explains how RAK Properties turned around from the crisis 68 Rawabi raises hopes for Palestinian dwellers 72

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

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REALTYBYTES

Rezidor to operate 30 hotels in Saudi Arabia

arlson Rezidor, a global hotel operator, will manage 30 new hotels in Saudi Arabia to be built by Al Hokair Group, a Saudi investment and development group, a joint statement said recently. The new hotels will be branded Radisson Blu and Park Inn by Radisson. Currently, the group operates seven hotels in the Kingdom with additional 15 properties expected to open within the next 30 months. “The Kingdom offers massive opportunity for the development of hotels, domestic resorts and serviced apartments; and we are delighted to partner with Al Hokair Group that has an unparalleled presence, market reach and hospitality expertise in the region," Wolfgang M. Neumann, President and the CEO of The Rezidor Hotel Group, said in a statement. With this agreement Rezidor and Al Hokair plan to establish new Radisson Blu and Park Inn in the major markets of Riyadh, Jeddah, Makkah, Medin, Al Khobar, Dammam, Jubail and upcoming secondary cities of Jizan, Hail, Tabuk, Al Baha, Al Khafji and Najran where business and investment opportunities are driven by the government’s proactive approach to spread wealth across different parts of the country. g

Gulf Property

Nakheel rakes in Dh2.6bn profits in 9 months of 2014 D

ubai property developer Nakheel recorded a 47 per cent jump in net profits to Dh2.6 billion for the first nine months of 2014, compared to Dh1.77 billion recorded during the same period last year. Its nine month profit is even higher than the total profits of last year, the company announced. “Strong revenue from property development and ongoing improvements in Nakheel’s retail, leasing and leisure business performance contributed to these robust results,” the company said. During the nine months ending 30 September 2014, Nakheel handed over 956 units to customers. Its retail and leasing businesses continued to perform strongly, with almost full occupancy of available units for lease.

“Nakheel’s leisure business also continued to deliver improved performance on previous years,” it said. Nakheel also prepaid its entire bank debt of Dh7.9 billion – four years ahead of time – during the first nine months of the 2014. Nakheel currently has a trade creditor sukuk of Dh4.4 billion, due to be paid in August 2016. “The company remains focussed on building cash generating assets in the retail, hospitality and residential leasing sectors to further strengthen its financial position in the future,” the statement said. Nakheel Chairman Ali Rashid Lootah said: “We have achieved a higher profit for the first nine months of this year than we achieved throughout the whole of

2013, so we are poised to significantly exceed last year’s results in 2014. With the bank debt repaid early and new cash-generating assets coming on stream, Nakheel is well on course to further strengthen its business and financial position going forward. “Our robust financial results reflect the growth in the real estate sector in Dubai, where Nakheel continues to play a strategic and important role. Since the financial year ending 2010, Nakheel has reported a year-on-year increase in net profit. “Our financial performance reflects the strength of the underlying business, increasing investor trust and confidence in Nakheel and the on-going support of the Government of Dubai.” g

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REALTYBYTES

Sharaf and Al Ali in new property venture

Etihad-Alitalia in Expo Milan 2015 promotion

litalia, Italy’s flag carrier, and Etihad Airways, the national airline of the UAE, have unveiled two aircraft in a unique Expo Milano 2015 livery to mark their cosponsorship of the global event. Expo 2015 will be held in Milan from 1 May 2015 to 31 October 2015 with an estimated 20 million visitors expected to attend the event of which more than a third will travel to the northern Italian city by air. The airlines held joint simultaneous events at Malpensa Airport in Milan and Abu Dhabi Airport to unveil the two Airbus A330-200 aircraft, to audiences gathered in both locations as well as thousands watching online around the world. The Alitalia A330-200 and the Etihad Airways A330-200, both in the special livery, will carry the Expo 2015 “feeding the planet, energy for life”

message worldwide. James Hogan, President and Chief Executive Officer of Etihad Airways, said: “I believe Expo 2015 will once again demonstrate the power of travel and tourism to drive growth and stimulate job creation and economic development in Italy.” Flight frequencies to and from Milan are set to increase during Expo 2015 when Alitalia will commence daily flights between Milan Malpensa and Abu Dhabi. These flights will connect with Etihad Airways’ services throughout the Middle East and with markets in the Indian sub-continent, Southeast Asia, and Africa. The airlines will link Milan with 560 codeshare destinations across the globe. Gabriele Del Torchio, Chief Executive Officer of Alitalia, said: “The Expo 2015 logo expresses a set of values and a vision shared also by

Alitalia: the pursuit of excellence, style and elegance typical of the “Made in Italy” brand, the renowned cuisine, fashion, design and art that are an essential part of our country. In addition to the joint liveried aircraft, Alitalia and Etihad Airways are offering a number of business initiatives including all-inclusive packages and special fares targeted at families, seniors, business travellers and young people for Expo 2015. Alitalia and Etihad Airways will have a pavilion throughout Expo 2015 with an interactive social hub. Giuseppe Sala, CEO of the Expo 2015 Company, said: “We set an important goal for eight million people to come from abroad and visit Expo 2015. Thanks to these aircraft, and the other initiatives that will be put in place in the coming months, we are sure we will achieve this goal.” g

haraf Investment Group and Al Ali Real Estate have announced the establishment of new company, Dubai General Properties for developing real estate projects in the UAE. The company's Board of Directors has appointed Yousuf Sharaf as the Managing Director of the company alongside being a member of the Board of Directors. A real estate and construction veteran, he has vast experience in industries, oil and gas sectors. He held many senior management positions in different companies around the country. “The real estate sector in Dubai is growing rapidly due to the resumption of stalled projects and the start of new projects in the market,” said Yousuf Sharaf. “The market is witnessing massive investments by national and international companies. Therefore, the indicators are very positive for the growth in the future,” he added. “Dubai is at an important juncture in its histor with the arrival of the World Expo 2020 that will usher in a new era attracting invesment, trourism that will necessitate the development of new projects,” said Sharaf. Expo 2020 will attract 20 million visitors to Dubai. The new company will participate in the future development of Dubai, he said. g Gulf Property

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REALTYBYTES

Tasweek expands portfolio

asweek Real Estate Development and Marketing, an advisor and solutions provider serving the property markets, said work on its third investment of an 11-villa resort being developed under a joint venture with Casabrina Vacation Villas has begun. The latest Villa will form part of the sprawling luxury Casabrina Vacation Villas luxury vacation complex located at the foothills of Pahang, the largest state in West Malaysia. This follows the recent completion of two projects. All Villas will provide panoramic views of the surrounding ancient rainforest and is a masterpiece of the renowned Balinese architect AA Yoka Sara who has been commissioned to design the rest of the upcoming villas as well. Felix Tree, the renowned Malaysian entrepreneur, is the creative force behind the ambitious development. Tasweek will market nine of the boutique villahotels spread over 30 acres of lush hillside land under a Shariah-compliant scheme. The firm has partnered with a Malaysian financial institution to provide mortgage to buyers from the Middle East. It will also offer special packages to visitors from the GCC who want to book any of the projects, thus grooming the development as a gateway between Gulf residents and Malaysia. g

Gulf Property

Lifetime Achievement Award for Alabbar

ohamed Alabbar, Chairman of Emaar Properties PJSC, the global developer of iconic projects, has been honoured with the ‘Lifetime Achievement Award’ at a ceremony recently. Alabbar received the honour from Ms Arlene Foster, Britain’s Minister for Enterprise, Trade and Investment, at a glittering ceremony that also recognised UAE’s industry leaders across diverse business sectors. Congratulating the winners, Alabbar said: “From familyowned business leaders to innovative entrepreneurs, the profiles of the winners reflect the diversity of Dubai’s business sector. It also highlights how our city supports entrepreneurship and offers a strong growth environment, which is underlined by the evolution of Emaar as a National Champion company of Dubai. “His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, has been the inspiration and guiding force in our growth journey. The cando attitude he instilled helped us to achieve what others perceived as impossible. Our iconic projects such as Burj Khalifa, the world’s tallest building, and The Dubai Mall, the world’s most visited retail and lifestyle destination, are today the civic pride of our nation.” Alabbar said that Emaar is moving into the next era of growth with the listing of Emaar Malls Group, which is one of the largest public offer-

Dh9 bn Dividend declared by Emaar Properties board

ings in the region. “We were one of the first companies to be listed on the Dubai Financial Market in 2000, and now we are setting another milestone with a truly international IPO by a Dubai-based company through a bookbuilding process.” A global entrepreneur with active interests in high-value

property development, retail, luxury hospitality, mining and commodities in international markets, Alabbar was the founding Director General of the Dubai Department of Economic Development (DED), and served as a member of the Dubai Executive Council and Dubai Economic Council. g

68%

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$200bn

of GCC leisure travellers opt for family-centric vacations

worth rail and metro projects either planned or under way in the Middle East. This translates to more than 33,700km of mainline routes and 3,000km of metro

Dh2.5 bn valuation of Amanat’s capital before initial public offering

REALTYBYTES At A Glance

Dh2.6 billion

net profits generated by Nakheel in 9 months of 2014

Dh9 billion

dividend declared by Emaar Properties recently

180,000

Dubai to host Lapita Hotel

the number of jobs that were created by the chemical industries sector in 2013

ubai Parks and Resorts LLC has announced plans to develop a Polynesian-themed family hotel as a key component of Dubai Parks and Resorts project that is taking shape in the Jebel Ali area. Construction of Lapita Hotel commenced in February 2014, with the opening scheduled for 2016. The 503-key Lapita Hotel will form part of the Autograph Collection, an exclusive ensemble of independent luxury hotels, within the Marriott International brand portfolio. Lapita takes its name from the pre-historic Pacific Ocean people who were considered nautical experts and ancestors of the Polynesian race. Drawing inspiration from the exotic Polynesian tropical landscapes, Lapita will feature a dramatic façade and lush settings that fuel the imagination. Commencing with the property’s expansive pathways

sprinkled with the vivacious colors of Polynesian flowers, the brand experience will continue with the lagoon style pools, themed activities and dining options. An in-house entertainment component will serve as a key attraction for the young at heart. Lapita will also feature relaxation zones designed to

provide unparalleled tranquility. The property will particularly help us target visitors to Dubai Parks and Resorts and eventually contribute to the destination’s tourist footfall.” In addition to Lapita Hotel, the development will comprise Bollywood Parks Dubai, Legoland Dubai and Motion-

gate Dubai. Centrally located between the three theme parks, Riverpark will serve as an entrance plaza featuring a mélange of retail, dining and entertainment options. Strategically located in Jebel Ali between Dubai and Abu Dhabi, the mega project is slated for completion sometimes in 2016. g Gulf Property

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REALTYBYTES

RICS gets Taqeem job

he Saudi Authority for Accredited Valuers (Taqeem) has recently signed a knowledge sharing and training agreement with the Royal Institution of Chartered Surveyors (RICS) to strengthen valuation services. Taqeem has commissioned RICS to develop a professional development program for senior government staff, other relevant public sector stakeholders and appraisal committee members involved in eminent domain in the Kingdom. Eminent domain, or ‘compulsory purchase’ as it is also known, is exercised when governments use their legal capacity to buy or take rights over private property to be developed for the benefit of the public. Examples may include airport expansion, road and rail / metro projects. The training will focus on international best practice including compensation, principles of asset valuation using International Valuation Standards, the legal implications as well as case studies and practical application. g

Paromita Dey, Senior Reporter, Carol Fernandes, Sales and Distribution Manager and Indrajit Sen, Senior Reporter/Sub-Editor of Gulf Property, receives an award for the publication at Dubai Real Estate B2B Conference held at the RitzCarlton hotel in Jumeirah last month as it celebrated six years of uninterrupted publishing of the magazine under challenging times

Gulf Property

SPF leader Mahendra Singh gets award, again!

ahendra Pratap Singh, Managing Director of SPF Realty the largest real estate broker in the UAE’s freehold property sector - has been conferred with Real Estate Brokerage CEO of the Year Award at the fifth edition of the CEO Middle East Awards held recently in Dubai. The award was bestowed upon Singh in recognition of his vision to spearhead SPF Realty’s outstanding growth, acting as an extended arm of several premium developers in the UAE market. SPF Realty was established in 2005 in Dubai with a vision to offer holistic solutions to all property-related requirements. The company mainly focuses on Real Estate Sale Brokerage and Real Estate Lease Brokerage services. SPF Realty has stood firm through the ups and downs of the nascent real estate market in Dubai to emerge as a leader in the sector. The coveted accolade honors CEOs from across industry sectors, recognising their business excellence and overall business success and acknowledging the vital contribution they make to the vi-

brancy of business in the region. Singh said, “Our success is a reflection of the tremendous confidence and trust of the developers as well as investors in our marketing strategies and service standards. We care more about our credibility than money. If we remain credible and trustworthy, money will follow,” he emphasized that success of

RECOGNITION FOR EXCELLENCE

his company lies in teamwork, “It is the collective effort of the SPF team.” “With unmatched market expertise and uncompromising service quality as our backbone, we offer our clients a complete and customised service advisory package that assures appreciation and return on investment, the company said in a statement,” he added. g

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Dubai Investment Park attracts 3,500 tenants

ubai Investments Park [DIP], anintegrated commercial, industrial and residential community in Dubai wholly-owned by Dubai Investments PJSC [DI], has attracted more than 3,500 companies across a wide array of sectors over the last 17 years. The park today hosts 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 & Toubro [L&T], Weatherford Oil Tool and among others who have set up their regional headquarters within DIP. Omar Al Mesmar, General Manager of DIP, said “Dubai Investments Park has pioneered the model of community development with its bustling business and residential concepts as also staff accommodation. DIP was conceptualised with a mission to bring new businesses and industries in a comprehensively-planned business complex. “Today, we are proud to be home to over 3,500 compa-

nies 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.” Approximately 59.5 million square feet of space within the 2,300-hectare DIP are readymade facilities, which includes 3,000 warehousing and industrial units. These also cover a number of factories which contribute a signif-

icant share to UAE’s GDP. According to Knight Frank research released in July 2014, rental values in industrial parks such as DIP have experienced double-digit growth compared to last year. Rentals in Class 2 buildings in DIP have gone up by 47 per cent year-on-year while those in Class 1 buildings in DIP have risen by 29 per cent over 2013. 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. It offers 104-kilometres of internal road network with well-developed infrastructure. g

REALTYBYTES

Deyaar profit jumps 94%

ubai-based developer Deyaar Development PJSC has reported a 94 per cent jump in consolidated net profit to Dh78.47 million for the third quarter of 2014, up from Dh40.48 million registered in the same period in 2013. Aided by robust property sales booking and property delivery, the net profit for the first nine months of the year rose 122 per cent to Dh193.04 million, compared to Dh87.15 million for the same period in the previous year. Meanwhile, total shareholders’ equity of the property company stood at Dh4.3 billion, with total assets recording Dh6.1 billion. Saeed Al Qatami, Chief Executive Officer of Deyaar, said: “Driven by our robust growth in our diversified real estate portfolio, we have once again recorded outstanding results. The third quarter witnessed aggressive investments in the hospitality sector, providing the right mix of competitive projects and services that have helped consolidate our position in the residential and commercial real estate industry and entry into the hospitality sector. “Needless to say, we remain committed to our priority of enhancing value for our customers and safeguarding shareholders’ trust.” Deyaar recently concluded the sale of residential units in tower-1 of the Montrose project, with the majority of units sold. g Gulf Property

18-23_Layout 1 01/11/2014 00:43 Page 1

DP: Reshaping Dubai’s urban landscape FOCUS

By Indrajit Sen Senior Reporter

hey have projects in virtually every part of Dubai. And they are marching forward with many more grand developments. With premium residential and commercial projects in Jumeirah Beach Residence, Dubailand, Culture Village and the Downtown, mega real estate developer Dubai

Gulf Property

Properties today is not just a builder but also a key contributor to Dubai’s economy. Dubai Properties is the property development arm of the larger Dubai Properties Group (DPG), part of the Dubai Holding conglomerate. The developer constantly endeavours to deliver projects that cater to all sections of the emirate’s expanding populace and contribute to the overall growth of Dubai’s real estate market. The company is part of Dubai Government’s vision to reshape the urban landscape of the emirate as it at-

tracts foreign investment, businesses, professionals and families - who need proper commercial, residential and entertainment space to enjoy a quality life. Since its inception, the company has developed some of the most sought after destinations including Jumeirah Beach Residences, Business Bay and a cluster of theme parks under the umbrella of Dubailand. In an exclusive interview with Gulf Property, Mohammed Al Habbai, Chief Officer for Urban Planning and Infrastructure of Dubai

Properties Group, elaborated on the company’s goals and strategies, upcoming projects and how his company plans to contribute towards the overall progress of the real estate sector in Dubai. Presently Dubai Properties is engaged in developing a growing portfolio of retail, commercial, residential and mixed-use projects to meet the growing demand of real estate investors in the region. “The year 2014 has been quite good for Dubai and Dubai Properties Group,” Habbai said with a smile.

18-23_Layout 1 01/11/2014 00:43 Page 2

FOCUS

An artist’s impression of Dubai Wharf, part of the Cultural Village– a new mixes-use development

‘Dubai Wharf will be a sought-after address in the historic Dubai Creek area. The design, positioning and accessibility of the project will also make it one of Dubai’s future landmarks for leisure, dining and entertainment...’

– Mohammed Al Habbai

“The response from the market was very good and it was very successful for us.”

Living in Dubai’s heart

Speaking of the premium residential projects Dubai Properties is developing, there is one that deserves praise. Being constructed in the beating heart of Dubai, ‘Maram Residences’ when completed will be minutes away from the Burj Khalifa and overlooking Business

Bay. Designed by famed American architects TVS Design, the luxury residential project would boast of a unique glass design and high quality finishing. The piling and enabling contract being awarded to engineering firm NSCC. Habbai said the construction will be done in just one phase and expects it to finish in 2017. The two 27-storey towers will have unit options including 1,2,3 and 4-bedroom apartments along with six exclusive penthouse suites with spacious layouts and premium finishing. Residents

Mohammed Al Habbai, Chief Officer for Urban Planning and Infrastructure of Dubai Properties Group

can also benefit from an intimate community feel with common lobby areas shared by a maximum of four apartments per floor and a stunning 19th floor viewing bridge offering visual treats of the surrounding skyscrapers. Maram Residence will include a business lounge, an indoor children’s play area, an outdoor children’s play and pool area, a state of the art gym and fitness area, a jogging track, a roof-top garden with seating areas and water features, and an infinity pool deck at roof level with a lounge.

A vast landscaped outdoor terrace on the ground floor is also planned for the residential tower and will be complete with seating areas, water features and a variety of community and retail outlets for the convenience of residents. Dubai Properties has invested a huge amount of more than Dh400 million into the project to ensure that buyers are only delivered supreme quality in every respect. Yet according to Habbai the prices of units begins from a modest Dh1.7 million. The pricing structure reflects Gulf Property

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FOCUS Dubai Wharf, part of the Cultural Village, will create new living and entertainment space on the bank of the Dubai Creek

the developer’s focus on affordable housing and proves how socially obliged they are to cater to the mid-income segment of the market. Through Maram Residences, Dubai Properties seeks to offer its buyers the best of an urban living experience with a panoramic view of one of the world’s iconic skylines. “Maram Residence will cater to the increased demand for luxury residential and commercial property in strategic locations across Dubai, and we anticipate that its launch will further support the development of Dubai by catering to its growing population,” Habbai stated. Dubai Properties’ decision to launch the project during Cityscape Global was strate-

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gic. “The market was very positive, it exceeded our expectations,” he remarked.

Embellishing Culture Village

As part of their mix-used portfolio, Dubai Properties is developing a sprawling project named Dubai Wharf. The project is intended to be a modern development featuring a contemporary design in the Culture Village district, overlooking a canal promenade adjacent to the historic Dubai Creek. To be located near Al Jaddaf metro station, with easy access to Al Khail Road, Business Bay crossing and Al Jaddaf Road, Habbai expects the project to

be ready by 2017. The mixed-use project features four towers with 582 residential units, approximately 150 retail, dining and entertainment units on the ground and first floors and over 2,000 resident and visitor car parking spaces at basement level. There are multiple apartments including 91 studios, 147 1-bedroom, 276 2-bedrooms, and 68 3-bedrooms units, located in the second to eighth floors. Pedestrian bridges over the canal offer full connectivity throughout all Culture Village structures, while three pedestrian passages provide convenient seamless entry points to Dubai Wharf, retail facilities and the canal promenade.

Tenants will also have exclusive access to residences. Dubai Properties has invested Dh800 million in to the project. Prices of residential units begins from an affordable mark of Dh1.1 million. “Dubai Wharf will be a sought-after address in the historic Dubai Creek area. The design, positioning and accessibility of the project will also make it one of Dubai’s future landmarks for leisure, dining and entertainment,” Habbai commented. The contemporary architecture used throughout Dubai Wharf presents a stone exterior with a large proportion of glazing and wooden textured shading used to soften the overall look and feel while playing a

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functional role of the building’s climate control. In line with the natural ebb and flow of the Creek environment, two of the towers feature eight floors while the remaining towers feature seven floors, presenting a ridged impression from an aerial view. Unit interiors feature deluxe finishing with high quality porcelain ceramic tiles, wooden doors, and marble and granite topped work surfaces and vanity counters. The developer has laid emphasis on health amenities by making provisions for a swimming pool and an equipped gymnasium on the podium level. The facilities overlook the canal system

with green spaces created to ensure a relaxed living experience for inhabitants of each of the four towers. Speaking highly of this flagship project, Habbai said, “The project is a contemporary architecture which I am very proud to present to Dubai residents, local and foreign investors, and the millions of tourists which visit our city every year.”

Dubai market

Dubai’s popular stature as a regional commercial hub and as a global financial and tourism destination has had a superb impact on the emirate’s real estate market. The metropolis has seen massive relocation of individ-

uals and families from the UK, US, Europe, China, and Africa, besides the longstanding migration from India and other Asian nations, since the end of the recession. New jobs are being created and trade in all sectors is flourishing, mainly due to Dubai’s investor-friendly policies and the fact Dubai is one of the safest and promising centres to do business. As a natural corollary, the demand for housing and offices is only seeing an ascent, thereby creating a bright future for both builders and buyers. That is something Habbai’s Dubai Properties would love to bank on and grow. “The Dubai real estate market right now is very pos-

itive and promising. The market has regained the consumers’ confidence, because of the regulations implemented by the government and the Real Estate Regulatory Agency (RERA) mainly. The response has been very, very positive,” Habbai confidently says. Given his optimistic views on investors’ sentiment and the market’s vigour, Habbai is quick to quash the notion of a bubble in the market or predictions of a repeat of the 2008 recession, as baseless or unfounded fear. “The regulations by the authorities, with regards to transparency issues such as escrow accounts, have proven quite beneficial for both the developers and the end-users,” he says. “That keeps the balance in the market.” Habbai also rejected predictions made by the media reports that the housing market in Dubai underperforming and the sales of decreasing. “I wouldn’t say that the sales volumes for villas have gone down. If we look at our villa project Mudon – a premier residential project in Dubailand – Phase 1 and Phase 2 have been sold out. Hence we are going to launch Phase 3 soon,” he stated. However Habbai admits that the commercial sector in Dubai has not been at par with the residential. Sales of office spaces have slumped and the trend is not pleasant. Yet Habbai sees promise for the commercial segment in future. “In commercial, there is still shortage in certain areas for office spaces, especially like in Tecom, Knowledge Village and in Business Bay,” he Gulf Property

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concedes. “But the demand will definitely be there, especially with the movement of new companies and also Expo 2020. We can feel the demand will rise, but obviously the residential part will lead.” On a different frontier, the Dubai market since the end of the recession period, has welcomed multiple foreign developers. Many such renowned builders from India, China, Turkey, Egypt and many other Asian, European and Arab nations are setting up camps in Dubai to attract investments for their project. This fact was recently

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demonstrated by the healthy participation of myriad overseas realtors and brokerage firms in Cityscape Global.in multiple property expos. However it can be said these foreign realtors who are coming into Dubai are mostly entering the market with the sole aim of wooing clients from their respective countries to buy property back home. Thus, in this manner, isn’t Dubai losing out on loads of investors, who would have otherwise bought property here? Isn’t their influx a challenge to the local builders? “I would not say so be-

cause as you know Cityscape is a very important platform for the real estate industry within the region and also important for other countries,” Habbai justifies. “I think the market is open to everyone and I don’t think that is scaring. It is a good opportunity for both parties to collaborate. No, I would say it is a compliment to Dubai.”

Budget housing

Mid and low-income groups in the UAE are expanding and will continue to expand,

given the steady flow of expat workers vis-à-vis Expo 2020. These groups comprise people who will naturally invest in low-cost housing projects. Thus affordable housing has gained immense importance and popularity in the UAE, and builders developing low-cost projects have also earned healthy profits. The demand for premium residential and commercial properties remains high in Dubai today. But in the long run, winners will be those who reap the benefits from developing or trading in affordable projects, since the

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FOCUS Dubai Wharf will create a new waterfront community in downtown Dubai

budget properties segment is as promising as the elite segment, and the former will only grow further with a rapidly increasing customer base. Considering the changing dynamics of Dubai’s property market, Habbai reveals Dubai Properties has finetuned its strategy to tap into this vast and promising budget properties segment of the market, despite most of their projects so far being high-end and elite. “We have a vast portfolio with projects like Remraam and Mudon. We are going to build about 30 buildings in Remraam in the next 3

years, due to high demand in this [affordable housing] sector,” he reveals. “So we at DP are not ignoring the sector. In fact, we believe there is a healthy market for the middle income class. Majority say around 45 per cent, will go for middle income housing. The high-end market is only around 15-20 per cent,” Habbai says. In fact Habbai says Dubai Properties’ emphasis on budget projects in spite of being primarily a developer of luxury properties, differentiates them from the other giants in the market today. “We at Dubai Properties

differentiate ourselves from the other developers in Dubai, because we have a large portfolio that includes labour camps, self-accommodation units, middle-income to the high-end housing, retail as well as in the hospitality sector,” he elaborates. “We cater to market needs.” Dubai Properties focusses solely on delivering integrated, end-to-end project development solutions, and this strategy has led to their success. From design and development, to sales and handovers, Dubai Properties has been doing it all in detail. The developer has

dedicated departments handling sales, marketing, engineering and business development. The company focusses on providing functional, sustainable and high quality solutions along with self-contained communal and convenient amenities for end users. As part of its broader corporate strategy, the developer also works closely with leading construction companies, architects and government entities to give an impetus to the real estate market. “The Dubai Properties Group will always aim for achieving goals for Dubai,” Habbai affirms. g Gulf Property

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Emaar & Dubai Holding in Lagoons venture FOCUS

Instead of competing against each other, Dubai’s two major developers – Emaar Properties and Dubai Holding – have joined hands to revive the once stalled Lagoons project that will go a long way in redeveloping Dubai in the years to come. Gulf Property takes a closer look into it...

By Indrajit Sen Senior Reporter

f you thought Dubai’s real estate market is growing only due to property developments in the upcoming areas, think again. The property market in Dubai is not just about the grand luxury projects in locations such as Dubai Marina, Jumeirah, Business Bay, Dubai World Central and the likes. Two of Dubai’s giants Emaar Properties and Dubai Holding have proved that there are developers who are equally focussing on revamping Old Dubai. The two developers have joined hands to build a vast residential project and iconic twin towers in the historic Dubai Creek. Emaar and Dubai Holding

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have launched Dubai Creek Residences that brings the charm of embracing life at the source of the city’s history and heritage. The luxury residential development is part of a sixtower cluster within the island district of Dubai Creek Harbour at The Lagoons, an ambitious city of the future, located as part of the Mohammed Bin Rashid City. Dubai Creek Residences offers the serenity of waterfront living along the historic Dubai Creek and the panoramic views of the city’s glistening skyline, where the Burj Khalifa, another of Emaar’s iconic projects, stands out. The move gives Emaar Properties whose domestic

land bank has nearly been exhausted, a chance to help re-build parts of Dubai city – by partnering master developers such as Dubai Properties, Dubai Holding and Meraas – who have larger un-developed land bank. Emaar Properties, developer of the world’s tallest tower Burj Khalifa and Dubai Marina, has a strong presence in international markets, such as Turkey, Morocco, India and Egypt. It is the most successful developer in the region. The joint move by Emaar and Dubai Holding will bring back life to the once stalled Lagoons project, which was severely affected by the global financial crisis of 2008-09.

A marvel by Dubai Creek

Directly set by the tranquil waters of the Dubai Creek, the 40-storey Dubai Creek Residences offers superblycrafted, luxury apartments on the waterfront. Drawing design inspiration from its surroundings, the homes bring a new aesthetic dimension and feature premium finishes and superior lifestyle amenities. This lifestyle development is anchored by a bespoke luxury hospitality offering and a yacht club. Presenting the master plan of Dubai Creek Harbour at The Lagoons, Mohamed Alabbar, Chairman of Emaar

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Mohamed Alabbar, Chairman of Emaar Properties, and Ahmed Bin Byat, CEO of Dubai Holding, announces their partnership in Dubai Creek Harbour project

Properties, said, “The Dubai Creek is the cradle of our heritage and the lifeline that steered Dubai’s growth. Dubai Creek Residences takes residents to the very source of Dubai’s history and provides them a modern, luxurious, living environment.” Only minutes away from the Ras Al Khor Bird Sanctuary, a thriving mangrove ecosystem and the abode of migratory birds and flamingoes, Dubai Creek Harbour presents a marina and harbour lifestyle like none other in the heart of the city, with a focus on conserving nature and also building on the nat-

ural flora and fauna. A master-planned city for tomorrow’s families, with state-of-the-art technology, integrated transportation systems, environmentally sustainable ecosystems and green open parks, Dubai Creek Harbour is spread over a land area of 6 million square metres. With a dedicated retail precinct and pedestrian walkways, the fully integrated community brings a new aspirational lifestyle. It will also feature The Dubai Twin Towers, an iconic mixed-use development billed to be the tallest twin

towers in the world; a structure that will also add to the city’s globally renowned skyline. The Twin Towers replaces the four dancing towers designed earlier under the title, Dubai Towers. At about 900 to over 2,150 square feet, the one, two and three-bedroom residences are spaciously laid out with the orientation and architectural features carefully planned to maximise natural light and fantastic views. Residents will have the unmatched experience of watching the city’s skyline evolve through the day – first

glowing in the morning sun and gorgeously lit up at night. “With the Dubai Creek Residences, the first project in the mega Dubai Creek Harbour at The Lagoons development, we are bringing a lifestyle choice that is unprecedented in the city,” Ahmad Bin Byat, Chief Executive Officer of Dubai Holding said. Dubai Creek Harbour at The Lagoons will also feature cultural amenities, educational facilities, healthcare centres and a wide range of leisure choices. All the key components of this worldclass development are designed as inter-connected districts, around waterfronts and green boulevards. The sweeping waterfront of the project lined by retail, commercial and residential zones will be built around various parks. It is worth noting that developers in Dubai are concentrating mostly on developing properties in upcoming and elite locations like Meydaan, Business Bay, Marina, Golf City, etc. In such a scenario how successful can a project like Dubai Creek Residences, being built in the old and historic part of Dubai, be? Will it be profitable for the developers Emaar and Dubai Holding? “Dubai is a very young city in itself, so saying that the Dubai Creek Residences is being built on the old and historic part of Dubai may not be the best way to describe location of this project. What Gulf Property

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FOCUS is more important to consider in a real estate development is the location of a project within the overall landscape of the city as well as the surroundings and natural attractions it offers,” Mayank Sawhney, Director of Transaction Advisory Services at Ernst & Young MENA, told Gulf Property, when asked to comment on the viability of the project. “If you look at this project from these angles, it certainly is going to be of the most prime projects in Dubai. The success of Dubai Festival City, which is located very much in a very similar location is enough evidence that there is enough demand for a high quality real estate project in this location as well. “This location may appeal to a different set of investor/end user base than what a Business Bay, Marina, Golf City etc locations attract. Therefore, strategically it appears to be a right move by Emaar and Dubai Holdings for choosing this as the location for their flagship JV project, as it gives the project a differentiation edge from the whole crowd of projects being announced by other developers in the locations such as Meydaan, Business Bay, Marina, Golf City etc and that in my view is going to be the USP for selling the inventory in this project.”

Two giants

“Dubai Creek Harbour by The Lagoons is a historic development that aligns with the future goals of our city, led by the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai,”

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Byat said while talking to the media about the project. Most importantly he said, “It (the project) also marks the spirit of partnership that Dubai fosters whereby Dubai Holding and Emaar Properties are sharing their synergies and building on their core competencies to create another iconic project that will be the pride of the city.” The original Lagoons project was initially announced by Dubai Holding in 2006, and was to have seven islands, interlinked with bridges, that would house residential units, shopping centres, office buildings, and marinas. The development was one of several projects that were shelved following the global financial crisis that struck Dubai in 2008. But Khalid Al Malik, the group chief executive of Dubai Properties Group, a member of the Dubai Holding group, back in 2011 said that the project was still under development and had not been scrapped. Emaar is probably the UAE’s most successful real estate developer and is growing with multiple projects abroad as well. But after independently developing so many iconic projects in

Dubai, why are they joining hands with a governmentowned entity like Dubai Holding for developing a project, one wonders. Analysts say, the partnerships forged by mega developers should not be seen in the negative sense, but rather as a sign of the Dubai market’s maturity. “Dubai Creek Harbour is one of a number of projects that are being undertaken jointly between different master developers (with Mohammed Bin Rashid City being another good example). It is a positive sign of a more mature market that major developers are now working more closely together rather than in competition with each other,” Craig Plumb, Head of Research, of global real estate advisory firm Jones Lang LaSalle’s MENA division said. “This competition and the lack of transparent information on what other parties were developing was one of the reasons for oversupply of projects in the previous cycle,” he said in reference to the recession of 2008. Emaar and Dubai Holdings are two of the largest real estate companies in Dubai and they joining hands to develop projects together is quite log-

ical, given the synergies a joint venture between these two creates. Sawhney says, “Dubai Holding brings to the table some of the most prime land bank in Dubai whereas Emaar brings to the table its unparalleled real estate development execution and sales track record. There is not a shortage of land bank in Dubai as such, but prime land bank like the one where this project is being developed is slowly becoming a scarce commodity in Dubai. Raising finance for a mega project like this is a challenging task, but a joint venture between these real estate conglomerates makes it more bankable.” Experts also believe both partners have much to gain from this partnership. “The vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum to see Dubai achieving its full potential of real estate development had earlier also led to these two mega real estate conglomerates mulling a merger in 2009 (on lines very similar to Aldar and Sorouh Merger in Abu Dhabi which got completed in 2013). Although a merger between these two entities could not

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Dubai Creek Harbour project

‘Dubai Holding brings to the table some of the most prime land bank in Dubai whereas Emaar brings its unparalleled real estate development execution and sales track record. Raising finance for a mega project like this is a challenging task, but a joint venture between these real estate conglomerates makes it more bankable.” – Mayank Sawhney, Ernst & Young MENA

take place at that time, but the two companies having joined hands to develop projects together is a win-win for both of them. “Therefore, both Emaar and Dubai Holdings would benefit from this partnership. Dubai Holding will be able to utilise maximum potential of the prime land bank that it possesses from the execution and sales capabilities of Emaar; whereas Emaar will benefit by getting access to some of the most prime land bank parcels in Dubai,” Sawhney says. So how will the property market in Dubai benefit from this partnership between the two realtors? “Combining the resources and expertise of the major developers should improve the quality of delivery and reduce the role of smaller third party developers. This should be greater

stability to the market as it will allow projects to be phased and released over a longer timeframe and in a more orderly manner in line with market demand,” Plumb believes. So can we expect the two partners to build more such projects together in future? Why not, Sawhney believes. “Yes, we certainly should expect these two companies jointly developing more such projects in future, but do not see they announcing more projects in very short term. They would want the market to absorb the inventory of the projects already launched, before announcing any new projects,” he says.

Held projects bouncing back

The restarting of the project

also demonstrates another key feature of the market’s progress. Developers who could not continue building their projects they began in the pre-recession area, due to the cash crunch in 2008, are steadily taking up the task of completing and delivering the same, rather than abandoning them for good. Plumb commends the trend saying it will prove profitable for the developers themselves. “Dubai Creek Harbour illustrates another feature of the current development cycle, with many of these projects being started in the previous cycle. With much of the initial infrastructure and site servicing work having already been undertaken, this should reduce future infrastructure spending and allow the project to be delivered more quickly than brand new projects on fresh

sites,” he maintains. Another reason for the trend towards restarting projects that have already commenced is the shortage of suitable new development sites. This is also in accordance with the Strategic Plan for Dubai, which seeks to develop sites closer to the existing built up area, before releasing land in new areas. This will make for a more compact urban form and reduce the infrastructure and servicing costs. It also supports the Strategic Plan’s objective of protecting and preserving areas of natural desert habitat from future development pressures,” he says. Mohammed Ali Alabbar agrees, saying, “The project is a true tribute to the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum to create a dynamic city of the future that integrates smart networks, while building on the cultural heritage of our city.” g Gulf Property

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At A Glance

Dh2.48 billion net operating profit recorded by Emaar Properties in the first 9 months of 2014

Dh7.03 billion total revenues generated by Emaar during the first 9 months of 2014

Dh17 billion

dividends paid by Emaar to its shareholders in the first 9 months of 2014

Dh172 billion

Emaar sells Dh10.5bn projects in 9 months worth of orders for shares were placed by investors in the Emaar Malls IPO

lobal real estate developer Emaar Properties reported a 37 per cent growth in net operating profit to Dh2.48 billion ($678 million) in first 9 months of 2014 compared to Dh1.81 billion ($493 million) net operating profit for the first nine months of 2013, driven by robust financial fundamentals, surging investor confidence and Dubai’s strong economic growth, a recent company statement said. Revenue for the first nine months of 2014 declined 7 per cent to Dh7.03 billion

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($1.91 billion), compared to Dh7.56 billion. Revenue for the third quarter of 2014 declined 16 per cent to Dh1.97 billion ($538 million from Dh2.34 billion recorded in the third quarter of 2013 while its third quarter net operating profit rose 30 per cent to Dh758 million ($206 million) up from Dh581 million ($158 million). “Successful listing of Emaar Malls on DFM underlined by robust growth of malls business with 9-month revenue of Dh1.89 billion ($517 million),” the company said.Hospitality revenues for the first nine months of 2014

reached Dh1.19 billion ($326 million). Emaar recently announced total dividend of Dh17.12 billion ($4.66 billion) during 2014 which is 250 per cent of the par value of shares.

Property sales

Emaar’s core competency of creating premium real estate assets generated significant sales growth in the first nine months of 2014. The total sales value of Emaar’s projects in Dubai was Dh10.5 billion ($2.9 billion), 15 per cent higher than the nine-month 2013 prop-

erty sales of Dh9.1 billion ($2.5 billion). In addition to project launches such as BLVD Heights and Opera Grand in Downtown Dubai, Emaar’s flagship mega-development, Emaar is unveiling new joint venture developments including the 6 million square metre waterfront project Dubai Creek Harbour at The Lagoons with Dubai Holding in Mohammed bin Rashid City (MBR City), and the 11 million square metres (2,700 acres), Dubai Hills Estate with Meraas Holding. The company has recently joined hands with Dubai

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Emaar Properties

maar Properties PJSC, listed on the Dubai Financial Market, is a global property developer and provider of premium lifestyles, with a significant presence in the Middle East, North Africa and Asia. One of the world’s largest

Holding to redevelop part of the Lagoons in a landmark announcement that will create the right synergies in Dubai.

Strong value creation

Mohamed Alabbar, Chairman of Emaar Properties, said: “This has been a record nine-month performance for Emaar as we delivered on our promise of strengthening shareholder value. “We have set an industry milestone by announcing a total dividend of Dh17.12 billion this year through our strategic growth initiatives including the distributions approved by the shareholders at the beginning of this year and the dividends proposed for distribution before the end of this year. “The successful listing of our malls business is testament to our vision to develop stand-alone profit centres of our diverse businesses in Dubai and international markets, creating long-term value for our stakeholders.” “The prime driver in our growth is the positive performance of the Dubai economy, which continues to inspire international investor confidence. Our strategy for the future is to further consolidate Emaar’s position as one of the largest developers

real estate companies, Emaar has total assets of over US$19 billion and a land bank of more than 214 million square metres in key international markets. With a proven track-record in delivery, Emaar has handed over 38,000 residential units in Dubai and other global markets since 2001. Emaar has over 690,000 sq m of recurring revenue generating assets,

and 12 hotels and resorts, with over 1,900 rooms. Today, over 70 per cent of the company’s revenues come from its recurring revenue businesses and international operations. Burj Khalifa, the world's tallest building, and The Dubai Mall, the world’s largest shopping and entertainment destination, are among Emaar’s trophy developments. g

‘We have set an industry milestone by announcing a total dividend of Dh17.12 billion this year through our strategic growth initiatives including the distributions approved by the shareholders at the beginning of this year and the dividends proposed for distribution before the end of this year...’

– Mohammed Alabbar, Chairman, Emaar Properties

of iconic projects and to increase our recurring and international revenues and profits.”

Recurring Revenues

The recurring revenue businesses (Malls, Hospitality and Retail) accounted for Dh3.80 billion ($1.03 billion), which is 54 per cent of Emaar’s total revenue during the first nine months of 2014. The recurring revenue businesses have recorded steady growth in their share of total revenue accounting for 49 per cent in full-year (FY) 2012, 46 per cent in FY2013 and 54 per cent for

9 months of 2014. Highlighting the successful listing of the company’s shopping malls and retail subsidiary on the Dubai Financial Market through an IPO that recorded total orders of over Dh172 billion ($46.8 billion), Emaar Malls recorded a total revenue of Dh1.89 billion ($517 million) during the first nine months of 2014. At 27 per cent of Emaar’s total revenue, this is 15 per cent higher than the ninemonth 2013 shopping malls revenue of Dh1.64 billion ($448 million). The growth in malls business was underlined by its flagship asset, The Dubai Mall, which welcomed over

FOCUS 58 million visitors, 5 per cent higher than the 55 million recorded in the first nine months of 2013.

Hospitality

Emaar’s hospitality and leisure business recorded a nine-month revenue of Dh1.19 billion ($326 million), 17 per cent of total revenue, by drawing on the upbeat performance of Dubai’s tourism sector. This is 13 per cent higher than the nine-month 2013 hospitality and leisure revenue of Dh1.05 billion ($288 million). The Address Hotels + Resorts, Emaar’s flagship hotel brand, recorded an average occupancy of 84 per cent through the same period, an industry-best.

International operations

The company’s international operations also reported positive growth through the first nine months of the year contributing a revenue of Dh1.33 billion ($363 million), 73 per cent higher than the nine-month 2013 international revenue of Dh770 million ($210 million). The company’s international operations now account for 19 per cent of the total revenue. With over 214 million square metres of land bank internationally, Emaar’s im growth overseas was highlighted by sales of over Dh 3.08 billion ($840 million) from Egypt during the first nine months of 2014, an 140 per cent increase over the same period last year. Emaar’s operations in Turkey, Saudi Arabia, Lebanon, Morocco, USA and Pakistan also recorded impressive growth. g Gulf Property

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NEWSUPDATE

Azizi fast-tracks Dh1.4bn worth of housing units

zizi Developments, a Dubai-based developer of Afghan origin, is set to deliver five residential towers with more than 1,000 units with a development value exceeding Dh700 million, a top official told Gulf Property in an exclusive interview. “Each building has a sale value of Dh125 million at current market value and all are scheduled to be delivered by the end of 2015,” Engineer Mohsen Kamel, Chief Executive Officer of Azizi Investments, the parent organisation of Azizi Devel-

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opments. “We have another five towers currently under development and construction taking the development value of the ten towers to Dh1.4 billion. When completed, these ten towers will host more than 1,200 residential apartments. “These are part of our Dh3.5 billion property portfolio currently under various phases of planning and development.” Eight of the ten towers are being constructed by SS Lootah Construction while two projects are being built by Modern Construction Co. The company has pur-

chased another 12 plots of lands at Al Furjan masterplanned community where it is developing 12 buildings each rising 12 floors. “We have substantially strong land bank and we are developing the projects with our own resources,” he said. He said, the sales campaign has been going strong. “We have already sold about 40 per cent or 200 units, since their launch a few months ago.” Azizi Investments, established by an Afghan businessman, Dr Mirwais Azizi, is a well diversified conglomerate that operates in a num-

ber of verticals including trading, retail, energy and mining, real estate and construction as well as banking and finance. The group owns two banks – including Azizi Bank – the largest lender in Afghanistan while it represents Nissan and Infinity brands in Afghanistan. “We have a strong presence in the Afghan real estate market, where we have delivered 800 apartments,” Kamel says. “We have just opened the biggest shopping mall in Kabul – which hosts 2,200 outlets. We have also delivered two other malls, taking the total number of

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Engineer Mohsen Kamel, Chief Executive Officer, is spearheading the development projects of Azizi Investments

At A Glance

Dh1.4 billion

Dh3.5 billion

worth of projects are currently under construction

Dh700 million

value of Azizi Development’s portfolio in the UAE

worth of residential apartments are to be delivered by the end of 2015

5,000

NEWSUPDATE ‘We have another five towers currently under development and construction taking the development value of the ten towers to Dh1.4 billion. When completed, these ten towers will host more than 1,200 residential apartments...’

– Mohsen Kamel

people work for the Group in Afghanistan and the UAE

outlets to 2,800.” Azizi Mall that has a gross floor area of 100,000 square metres, is the largest civilian structure ever made in Afghanistan. Kabul’s tallest building that rises to 21 floors, has also been built by Azizi Investments. “In Dubai we are also developing a five-star hotel at the Phase II of Dubai Healthcare City that will have 440 keys. We are talking to a number of hotel operators to manage the project,” Kamel says. “Besides, we own two plots at the Palm Jumeirah Crescent where we are planning to develop two luxury

serviced apartment complexes.” The company that employs 5,000 people in Afghanistan and the UAE, has an annual turnover of Dh9.1 billion (US$2.5 billion). Meanwhile, Azizi Developments announced yet another luxury living project, Azizi Aster Residence that offers European standard 1, 2 and 3 bedrooms apartments, with fully modern and luxury furniture for a stylish living. The development will be located in Dubai’s new upcoming residential destination, Al Furjan. “Demand for stylishly

designed apartments in Al Furjan continues to be strong, led by its appeal as a most popular upcoming destination. Homes in Al Furjan will appeal to investors as it provides them a sought-after address in the heart of the emirate,” he said. Detailing the outline of the master project, company officials revealed that this will span 4045.86 million square metres in total making it the developer's largest project in the emirate. With construction scheduled to begin within this month, Azizi aims to complete the development during the first half of 2017. The development’s floor plans range from 864 square feet to 1802 feet and will consists of 1,2, or 3 bedrooms respectively with a combination of furnished apartments including modern kitchen fittings, and high ceiling lobby with extravagant finishing. The apartments will also comprise of balcony/terrace along with private parking bay. The Podium level will have a swimming pool along with kids pool area, fitness club, a sauna and steam facilities among other ameni-

ties. A total of 128 units will be on offer for sale. The breakdown is as follows, 29 units comprise one bedroom, 79 units will have two bedrooms and 20 units of three bedroom apartments. Dubai’s property market has been booming and developers have been launching new projects on a regular basis in the emirate to keep pace with rising demand. Azizi Developments alone has so far launched a 7 residential properties. The company recently revealed its plans to earmark up to a million square feet of land to develop quality residential properties in the coming years. Azizi’s decision to develop residential offerings follows a call by Dubai's leadership for greater investment in developing realty solutions to serve the ever-increasing tourist footfall to the emirate. Azizi developments is focusing towards a long term business approach in all its property projects as the real estate demand is on the upsurge, following Dubai’s announcement of hosting the World Expo 2020. g Gulf Property

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MAG unveils Dh11bn worth of projects NEWSUPDATE

One of MAG Groupâ&#x20AC;&#x2122;s new project being marketed

Gulf Property

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NEWSUPDATE

‘We have so far delivered 1,300 units in four projects with a combined value of Dh3 billion...’

– Mohammed Nimer, CEO, MAG Group

Mohammed Nimer, Chief Executive Officer of Moaffaq Al Gaddah (MAG) Group

Gulf Property Exclusive

ubai-based real estate developer MAG Property Development, part of the Moafaq Al Gaddah (MAG) Group, has rolled out six projects worth Dh11 billion (US$3 billion), part of its Dh15 billion planned developments announced earlier this year, a top official told Gulf Property recently. Once completed, the six projects would deliver 2,300 units – mostly residential – in

addition to its four projects delivered so far with 1,300 units. “The projects will undergo designing stage during the first quarter while deliveries are scheduled in three to four years,” Mohammed Nimer, MAG Group Chief Executive Officer, told Gulf Property. “We have so far delivered 1,300 units in four projects with a combined value of Dh3 billion.” MAG is a diversified business conglomerate owned by Arab expatriate businessman Moafaq Al Gaddah, who made a fortune from auto spare parts and accessories

trade in Dubai and Sharjah. Despite the global financial crisis that affected Dubai’s real estate market in 200810 and exposed many developers who had to fold businesses and disappear from the market with piles of debt, MAG Group had continued to deliver its projects amid challenging economic environment. “Obviously, we had to slow down like the rest of the developers till the dust settled and then delivered our promises to the customers,” Nimer explains. “However, now that the market is back, we have also launched these projects

to meet the growing demand for quality housing.” MAG Group has already projects under implementation worth Dh5 billion, including the Dh2 billion multi-phase project, located in the Meydan district, comprising 106 townhouses and a residential community spread across 29 five-storey apartment buildings, a Dh750 million residential project in Sharjah, the Dh700 million Art Centre in Barsha, the Dh865 million City of Arabia residential project, a Dh500 million MAG residential tower in the Burj Khalifa area, the Dh100 million MAG Gulf Property

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NEWSUPDATE MAG 210 getting ready at Dubai Marina – one of many properties being developed by MAG Group

At A Glance

Dh11 billion

worth of new projects have been announced by MAG

Dh3 billion

value of the properties delivered by MAG Group

1,300

units have been delivered by MAG Group so far

2,300

new residential units are being developed by MAG Group in six projects

Logistics plant in Jebel Ali and the Dh180 million MAG 226 residential tower in Jumeirah Village. In a statement, Moafaq Al Gaddah, Chairman of MAG Group said earlier, “We are studying to buy land for additional projects which could be worth up to Dh10 billion in Dubailand, Jebel Ali and Abu Dhabi, which will be announced in the coming months." MAG Group’s trading arm

Gulf Property

earlier reported an annual turnover of more than Dh 800 million, and a market presence in more than 90 countries and a forecast for further expansion in 2014. MAG Royal Solutions also created a Guinness World Record in 2013 for the largest automated parking facility in the world, at a cost of Dh80 million and situated in Emirates Financial Towers, DIFC. Coming back to the current

market situation, Mohammed Nimer said, the supply in the market would be higher than the demand till the middle of the next year. “Later, we expect the demand to pick up – that’s when our projects will also take off to meet the demand,” he explains of the timing of the launch of these projects. The first two of MAG Property Development’s new projects are being designed by Chicago-based Skidmore,

Owings and Merrill LLP (SOM) - one of the world’s largest and most influential architecture and interior design consultancies that has completed more than 10,000 projects in over 50-plus countries. SOM designed and supervised some of the world’s tallest towers including Burj Khalifa in Dubai, Sears (Now Willis) Tower in Chicago. SOM will be lending its renowned expertise to the

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development of two properties, MAG 1978 and MAG Luxury. MAG 1978, located in Business Bay will be MAG’s Headquarters and will include 218 ‘holiday home apartments’ while MAG Luxury situated in Burj Khalifa District will comprise of 62 apartments and lavish facilities. Paying attention to the cultural and traditional wealth of the emirates, MAG Property Development’s third project to be launched this year is the Estate at Al Furjan. Sited in close proximity to Jebel Ali Port, Al Maktoum Airport, Knowledge Village, and Internet/Media City, The Estate fuses elegant, enduring designs that are contemporary but pay homage to Dubai’s rich heritage. Talal Al Gaddah, CEO of MAG Property Development, said, “MAG Property Development is spearheading MAG Group’s ambition to be at the forefront of the region’s real estate industry. It is achieving this through its commitment to the group’s corporate philosophy of innovation and continuous improvement.” Another MAG Group project sees its successful expansion into the U.S. market with The Gate located in Frisco, Texas. With a total investment of $750 million, The Gate features 17 buildings and seven villas spread across a vast area. Its four and five-story residential building are suited to the urban living requirements of professionals and young families, with its 10-storey buildings offering more luxurious apartments. At street level, there are numerous possibilities for shopping and leisure, with many shops and restaurants on the ground floor. Frisco is one of the fastest growing U.S. cities whose fame began in the late 1990s, when the northern suburbs of Dallas experi-

“The recent soft landing is good for the industry. It reflects that the market has matured and investors are making sensible choices. Buyers are looking at finished projects developed by credible developers whom they can trust...”

NEWSUPDATE

– Mohammed Nimer

Dh15 bn worth of projects are being developed by MAG Group

enced explosive growth causing a spill of people into its territory. Located about 25 minutes north of Dallas, Frisco has become a comfortable home for professionals who work in the Dallas-Fort Worth Metroplex. The Gate is conveniently located adjacent to other Frisco neighbourhoods and is expected to be big drawer for sports fans, with the new training grounds of the Dallas Cowboys nearby. The final two projects of this year are MAG 230 and MAG 226. MAG 230 is a prestigious residential landmark in the City of Arabia and home to the much talked about Mall of Arabia. The development’s distinctive Lshape main structure houses unique features and offers

highclass l i v i n g standards. The sixth project, MAG 226, is a prestigious residential property standing tall as a landmark in Jumeirah Village Circle and meticulously designed in both its internal and external architecture to reflect the requirements of luxury living. Nimer said, the recent soft landing of the freehold sale is good for the industry. “It reflects that the market has matured and investors are making sensible choices,” he said. “Buyers are looking at finished projects developed by credible developers whom they can trust.” MAG Group’s most recently completed project includes Polo Residence, which is located in the heart of Meydan City. The gated

community of 29 four-storey buildings blends the bucolic with the urban, siting modern buildings among trees and 1,160,000 square feet of meadows. MAG Property Development’s renowned completed projects include Emirates Financial Towers (EFT), a 27storey commercial twin tower development located in the heart of the Dubai International Financial Centre. EFT has made its mark on the Dubai landscape with its contemporary elliptical profile, glass facade and skybridge. The two towers also boast the world’s largest automated parking facility, as verified by the Guinness Book of Records, which was developed by MAG Royal Solutions, another division of MAG Group. MAG Property Development is the real estate development arm of Moafaq Al Gaddah Group, one of the region’s largest corporate entities. The group encompasses more than 50 companies with activities spanning numerous sectors, including commercial, real estate, service, industrial and pharmaceutical. The company focuses on projects that deliver longterm benefits to investors and customers and has a current real estate project portfolio in excess of Dh11 billion ($3 billion). g Gulf Property

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NEWSUPDATE

By Indrajit Sen Senior Reporter

IGO makes ambitious foray into US market

nvest Group Overseas (IGO) has done what few real estate companies from the region, let alone the UAE, has done. IGO, a subsidiary of the Moafaq Al Gaddah (MAG) Group, has invested in a grand mix-used project in the American city of Frisco in Texas state. With a total investment of US$750 million (Dh2.75 billion), ‘The Gate’ features 17 buildings and seven villas spread across a vast area of 40.95 acres. Like multiple

Gulf Property

other developers, IGO too made it a point that their unique project gets the attention of investors at Cityscape Global, Dubai held in September this year. Headquartered in Dubai, IGO was formed in 2004 through a joint undertaking of current chairman of MAG Group, Moafaq Al Gaddah and Dr. Mohammed Anas Kozbari – an experienced and successful entrepreneur. With this determined venture into the US market, IGO has proved that it is growing by

leaps and bounds and in fact showing the way to other Middle Eastern developers. However, one wonders why of all the places in the world, IGO had to cross the seas to build a project in the US. “The market in the States has evolved heavily,” Kozbari says. “You remember the recession that the US market went through in 2008. Well the market now is much stronger,” he reiterates. Okay understood. But even if they did take the bold decision to camp in the US,

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NEWSUPDATE

Maher Maso, Mayor of Frisco, Texas, USA, speaking to Gulf Property

why did they not invest in the global metropolises like New York City or Los Angeles? “When it comes to the state of Texas, you can say that at the state as well as the local level, they were able to avoid the hardships of the recession and that paid off. Now you see, the economy of the state of Texas has been able to bring in a lot of different companies from all over the US to headquarter and conduct businesses,” Kozbari states.

How ‘The Gate’ will help Frisco

The Gate is a masterplanned, mix-used development, located in the Dallas-Fort Worth metropolitan area that will cap the booming economic develop-

ment in Frisco. True to its name, The Gate is conceived to be a gateway, a socio-economic catalyst for the 6.3 million and growing population of the metro area, with a refreshing live, work and enjoy environment. When completed, the project will host 1.21 million square feet of prime residences; 854,000 square feet office spaces; 54,000 square feet of retail spaces; 47,500 square feet of cafes and restaurants and a boutique hotel. The Gate sits at a strategic spot straddling John Hickman Road and the Dallas North Tollway, the 30.2 miles toll road that connects Frisco to downtown Dallas. “In Frisco we have a vision,” said Mayor of Frisco Maher Maso, who had travelled all the way from the US to Dubai, to attend the launch of the project at Cityscape Global. “In the next 20-25 years we will be double the size of what we are. Texas is business-friendly, without too many government regulations. There are opportunities for companies that are good at what they do. Frisco

Dr. Anas Kozbari, Managing Partner &CEO of Invest Group Overseas

today is the second fastest growing city in the US.” IGO has gone about developing this project all by itself, without a partner; although Kozbari says they had been approached by many a firm who wanted to be part of this unique project in the US. However, Kozbari says that investing in such a grand project in the US, will not divert them away from the Dubai market, which is their base. “Dubai is something we emphasise on very much. There are a lot of investments here in Dubai,” he asserts. “And The Gate is just one of the projects we are developing outside the UAE.”

What’s so great about Frisco & The Gate?

Frisco may be unheard of, unknown to most other nonAmericans. But with the growth of the city’s population, the economy is also strengthening with new businesses camping there. The city continues to grow along

‘In the next 20-25 years we will be double the size of what we are. Texas is business-friendly, without too many regulations. There are opportunities for companies that are good at what they do...’ – Maher Maso with the state of Texas which hosts 52 of the 500 Fortune 500 companies. Even the state’s taxation structure is considered the best in the US and its public education system regarded as one of the best in the nation. Frisco, besides developing on the financial front is also a hub of sports in the Dallas-Fort Worth metropolitan area. For instance, famed American football team the Dallas Cowboys is moving its world headquarters to Frisco. The city is also home to many other football, hockey, baseball and gymnastics teams; and due to the heavy youth populace the city enjoys every kind of sport played in America. What is notable is the fact that the city offers a global feel as it hosts sizeable Indian and Middle Eastern communities. Mayor Maso even draws a parallel saying, “Frisco is very similar to Dubai, which is a very successful city. It’s a very successful community, obviously much bigger than Frisco and growing rapidly. We have things to learn from each other and also things to improve the development process.” g Gulf Property

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Swarovski

ounded in 1895 the city of Wattens, Austria, Swarovski designs, manufactures, and markets high-quality crystals, genuine gemstones and created stones, and finished products such as jewellery, accessories, and lighting. Swarovski delivers a diverse portfolio of unmatched quality, craftsmanship, and creativity that goes beyond the manufacturing of crystal. Still family owned and run, Swarovski is now the world leader in cut crystal and fashion jewellery, as well as lighting, architecture and interiors. g

He said, the pricing of the project has been kept below the existing market price at Dubai Marina, so that the real end-users could purchase. “Tebyan is a very responsible developer. Since there is no financial pressure on them, they have kept the prices comfortable for buyers and the payment plan has also been structured to encourage the end-users to purchase. “With the Swarovsky branding, one would assume the prices would be very high. But we have kept it below the normal apartment

level,” he says. Executive Board Member of Swarovski, Markus Langes-Swarovski said: “This is a landmark project that will delight generations to come. We are thrilled to take crystallized luxury to another level in residential interiors, and delighted with our partnership with Tebyan.” Tebyan has a strong pipeline of projects to the tune of Dh1.5 billion in the next two years. In addition to the Sparkle Towers at Dubai Marina project, Tebyan is working on two residential and hospitality projects in Jebel Ali, Dubai. The com-

pany operates in several countries including the UAE, KSA and Jordan. Naji Alia, Managing Director of Tebyan, adds, “We’ve received a great response right from the very beginning. We believe our partnership with Swarovski has opened up new opportunities for us and for investors and realtors from across the globe. This is our time and I’m sure that we’re going to shine the brightest. “Sparkle Towers at Dubai Marina is the epitome of luxury and leisure. It redefines the real essence of the elite way of life and brings fine artistry to the fore. Our aim is to achieve the pinnacle of perfection and bring an experience of a lifetime to all our residents.”

Swarovski

Swarovski is now the world leader in cut crystal and fashion jewellery, as well as lighting, architecture and interiors. However, this is the first time the Austria-based

FOCUS global crystalware manufacturer has lent its name for a real estate branding, Gulf Property spoke to Markus Langes-Swarovski, Executive Board Member of the company, on its first-of a kind collaboration also the legacy that Swarovski has maintained for all these years. Excerpts: Gulf Property: Please give your comments on your presence in the Middle East. Markus LangesSwarovski: We have presence since many years in the UAE and it is a very special project since it is a first of its kind when we talk about ‘Space marvelled by Swarovski’. We are trying to co-develop it with the design team of Sparkle Towers. The design themes in Sparkle Towers, Swarovski crystal installations and lighting fixtures, is particularly made for the project. But obviously we have been supplying crystals to other projects in the region, particularly Dubai and also in Abu Dhabi, namely the Grand Mosque and hotels. As Swarovski, is Sparkle Towers your first residential project? In that manner, it is our first residential project that we are participating in the design concept. And the fact that Swarovski is the key selling point of this project, it is the first time in our history. Depending upon the success of Sparkle Towers, would you like to venture more into residential projects and collaborate with other developers? Definitely. For us, spaces, whether it is in our own museum in Austria; I think, is the most supreme canvas for Gulf Property

66_Layout 1 30/10/2014 18:19 Page 1

EVENT UPDATE

IREIS to scan UAE realty

he three-day International Real Estate and Investment Show (IREIS 2014) that will be held from November 20-22, 2014 at the Abu Dhabi National Exhibition Centre is set to provide a snapshot of property markets in the Middle East, Europe and the Asia-Pacific region and will include more than 100 exhibitors from over 30 countries. IREIS 2014 is expected to gather an estimated 15,000 visitors including investors, developers, financiers as well as international investment promotion authorities related to the real estate sector from the participating countries. Attracting a migrant population from different parts of the world on account of its peaceful political environment and business climate, Abu Dhabi and its property market are currently on the

Gulf Property

‘With Abu Dhabi’s population set to grow to 3.1 million by 2030, the successful growth of the real estate sector is vital to the economy...’ – Antoine Georges

threshold of immense growth. Expatriates seek to make lucrative real estate investments in the emirate. IREIS 2014 will offer investors an opportunity to learn about and to purchase property both within the emirate and in their own nations. The number of residential

units in Abu Dhabi is set to increase to 686,000 by 2030. The combined government and private sector investment in Abu Dhabi’s real estate sector till 2030 is valued at an estimated Dh600 billion. For those wishing to enter the UAE property market, the event will feature conferences to introduce the region’s investment authorities, builder’s authorities, investment zones and city councils. Antoine Georges, Managing Director DOME Exhibitions, said, “We are delighted to present IREIS for the sixth consecutive year in Abu Dhabi. IREIS has witnessed year-on-year growth in line with the increasing number of people migrating to Abu Dhabi. “With Abu Dhabi’s population set to grow to 3.1 million by 2030, the successful growth of the real estate sector is vital to the economy.

Holding a significant real-estate event in the emirate has become a sheer necessity to serve its burgeoning population. Attracting some of the world’s most prominent players from across the globe, IREIS aims to target real estate both in the UAE and around the world.” IREIS 2014 will provide participants with access to thousands of prospective buyers. Besides, it will offer a valuable opportunity for builders to market their corporate brand to international media and investors. The exhibition is also seeking to attract professionals from sectors related to real estate, such as architects and project designers. IREIS 2014 will also host knowledge-sharing seminars aimed at empowering market leaders with new ideas to expand business into emerging markets. g

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Omniyat and DSI break ground on Palm Jumeirah project NEWS UPDATE

ahdi Amjad, Executive Chairman and CEO of the Omniyat Group and Khaldoun Al Tabari, Vice Chairman and CEO of Drake & Scull International (DSI), broke ground on the One at Palm Jumeirah, the Dhs two billion premium residential development located at the trunk of the Palm Jumeirah. Members of DSI and Omniyat joined the two executives to celebrate the occasion. The ultra premium development is scheduled to be completed in 2017. "We are thrilled to break

ground on what will be, in the near future, one of the finest residential developments anywhere in the world. Throughout the next three years, the Omniyat Group and DSI will work jointly to build the building to a standard, well beyond anything seen in high-end development," said Amjad. "The 25 storey tower, comprising 90 spacious apartments will be the most prestigious address in Dubai. Our swimming pools, indoor and outdoor, cinema, cigar lounge, super luxury spa and yacht club will be the most lavish of its kind. It is my in-

tention to do something really special for our city,” he said. Being one of the highest residential developments at the trunk of the Palm Jumeirah, the One at Palm Jumeirah’s 20,000 square feet penthouse will provide unobstructed 360 degree view of Dubai’s skyline around the Palm and marina areas. “The project is specially crafted for the most privileged of the privileged few, which shows the commitment which is reflected in our design approach. Our aim is to release a project that can smoothly speak to the world and take

the buyers through a journey of urban and premium lifestyle,” Khaldoun Al Tabari said. “The selection of this development was based on the strengths of the partners and teams, vision for the property and dedication to create an outstanding residential project,” Tabari added. The project is a 50-50 joint venture between the Omniyat group and DSI and is a collaboration between Soma Architects from New York, Super Potato interior design from Japan and Vladimir Djurovic landscape architects from Lebanon. g Gulf Property

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Bashar Masr i in action

Rawabi is fully-incorporated Palestinian municipality, which means we have established strong local governance structures in accordance with Palestinian law, under the oversight of the Palestinian National Authority, like all other municipalities in Palestine. Mayors and municipal councils, such as ours at Rawabi, are responsible for coordination of the provision of public services within the city limits, under the overarching framework of the laws and requirements of our national government. But the Palestinian Authority does not own Rawabi, as it does not own Nablus, or Ramallah, or any other municipality in Palestine. Typically, governments do provide funding for all the public infrastructure of cities. However, this is not the case in Rawabi, due to the special circumstances of the PA and its limited budgets. So the public infrastructure of the city had to be financed and built by Bayti, without financial help from the PA. It should be made clear, though, that the PA is very supportive of Rawabi and

has exerted a great deal of effort creating an enabling environment for the project, even if they could not finance its public infrastructure.

Is there any threat of Israeli occupation looming over Rawabi? Are there any Israeli settlements nearby? The occupation is of course a factor that has created numerous obstacles, some of which are extremely serious and as yet remain unresolved. To date, the Israeli government has withheld approval for us to widen the main road that leads to Rawabi. Even more importantly, we are still without approval to tap into the main water supply. It is impossible to understate the severity of those problems. These issues have been highlighted repeatedly in the international press. These are not problems we can solve on our own – the solution lies in government action. We press forward with construction, however, we have never lost hope that the resolution will be achieved in the future. Yes, there are several set-

tlements nearby, but they do not pose significant problems for us, except in the macro sense. At this point, Rawabi is too big to be threatened by small groups of troublemakers. Palestine needs ten more Rawabis.

Depending on Rawabi’s success, will Bayti Real Estate Investment Company create more such planned cities in future in the West Bank and Gaza? Absolutely. We would love to replicate this success. As well, we welcome industry growth as other Palestinian real estate developers scale up and join us – there are a number of great projects already underway. We are a young country with a huge demand for new housing, which will only become larger as the population grows. From the real estate industry perspective, the outlook is very bright. We are all working towards the same goal – every job we create, every home we build for a Palestinian family takes us that much closer to realising the dream of a peaceful Palestine. g

INTERVIEW

‘The occupation [of the Palestine by Israel] is of course a factor that has created numerous obstacles, some of which are extremely serious and as yet remain unresolved. To date, the Israeli government has withheld approval for us to widen the main road that leads to Rawabi. Even more importantly, we are still without approval to tap into the main water supply. We press forward with construction. However, we have never lost hope...’

– Bashar Masri

Gulf Property

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Turkish delights MIddleeAST

An artist’s impression of the Istanbul International Finance Centre (IIFC)

By Indrajit Sen Senior Reporter

Gulf Property

urkish developers are increasing their presence in the UAE both as part of their expansion of portfolio in the Gulf region as well as to secure investments for their projects back home – from the GCC investors and property buyers. Turkish government last year relaxed property ownership laws by opening the market for Arab investors who can now own properties in Turkey in their names with full title deeds and rights. The move has resulted in intended impact – and saw large-scale property purchases by wealthy Arab buyers from the Gulf region. Since last year, a number of

Turkish developers, designers, project designers, architects and real estate agents have set up offices in the UAE to tap the market further. This was visible at the Cityscape Global exhibition held recently. Turkish realtors seemed desperate to attract foreign buyers for their projects as well as reap the benefits of investing in the Dubai market.

Ağaoğlu injects $5bn in IIFC Major Turkish developer Ağaoğlu decided to do something unique. Realising that the Dubai and the larger GCC market is

a highly lucrative market, Ağaoğlu launched probably its biggest project till date, the Istanbul International Finance Centre (IIFC), ahead of its launch back home. In the words of Ali Ağaoğlu, Chairman of Ağaoğlu Group of Companies, “This is because Dubai is an important financial centre in the world.” The IIFC is being regarded as an important project because the government hopes it will increase Turkey’s share in international capital by enhancing Istanbul’s power of attraction. “Turkey is the 16th largest economy in the world and it continues to grow, with the growth rates remaining stable. And the aim is to become

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Emirates REIT gets listed in global real estate index NEWSUPDATE

mirates REIT Limited, the UAE’s first regulated Shari’a-compliant real estate investment trust incorporated in the Dubai International Financial Centre (DIFC) and listed on NASDAQ Dubai, has been recently selected to join the FTSE EPRA/NAREIT Global Emerging Index. The FTSE European Public Real Estate Association (EPRA) / National Association of Real Estate Investment Trusts (NAREIT) Global Real Estate Index Series, launched in 2008, covers the world's largest investment markets and includes a range of indices covering Emerging and Developed Markets. The FTSE EPRA/NAREIT Global Emerging Index is designed to track the performance of listed real estate companies and REITs in emerging markets. The Index constituents are adjusted for the size of their free-float and are therefore suitable for index tracking funds, derivatives and exchange traded funds. Emirates REIT was established in the DIFC in November 2010 by Emirates REIT Management (Private) Limited. Under the CIR, the company is categorised as a domestic fund, an Islamic fund, a property fund and a real estate investment trust. The company mainly invested in income producing real estate in line with Shari’a principles. The company, over the last two years, has

Gulf Property

Sylvain Vieujot, Executive Deputy Chairman of Emirates REIT Management

strengthened its property portfolio with a growing number of acquisitions. The current portfolio consists of 11 properties within Dubai. ‘Building 24’ is a low-rise building featuring commercial office and retail space located in Dubai Internet City. ‘Indigo 7’ is a low-rise building located on Sheikh Zayed Road. ‘Loft Offices (Loft 1, Loft 2 and Loft 3)’ are a cluster of three low-rise commercial buildings located in Dubai Media City. ‘Office Park’ is a commercial building located in the Knowledge Village within Dubai Internet City. GEMS World Academy Dubai (GWAD) is an education facil-

ity located in Al Barsha South. Le Grande community mall is the retail component of Trident Grand Residence in Dubai Marina, a mixed-use residential and retail building. The new addition to the portfolio is the Index Tower, a mixed-use property located in DIFC, a well-established commercial and retail district in Dubai and was newly completed in 2010. Foster + Partners has been appointed to reconfigure the retail mall and design ready to occupy office floors at Index Tower, located in the DIFC. Emirates REIT owns 16.64 office floors in the building, 1,404 car parking spaces and the mall located

over ground and podium levels as well as the sky lobby. Sylvain Vieujot, Executive Deputy Chairman of Emirates REIT said, “Following the commencement of marketing and leasing activities, the appointment of architects is an important step in realising our plans for the Index Tower. This will help us provide a full offer in the DIFC, ranging from small offices which have been fitted-out and are ready to occupy to large shell and core floor-plates. “The redesign of the retail space aims to increase the number of outlets and open up street access. This appointment sets in motion our plans to make Index Tower a unique and exciting retail and leisure destination, complementary to amenities and attractions in nearby Downtown.” The company’s net profit jumped by 194 per cent to $34.1 million during H1 2014, up from $11.61 million for the same period in 2013. Its portfolio value increased by 73 per cent to $559.65 million from $323.13 million at the end of 2013.“The first six months of 2014 were marked with milestones. With Dubai’s long list of mega projects, there will be no shortage of investment opportunities in the future. Our goal is to buy properties that are completed or nearing completion. There are a lot of those coming in Dubai. We would continue to grow our portfolio, adding prime assets in strategic locations,” said Vieujot. g

Gulf Property

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In the Heart of Dubai Introducing a limited collection of luxury villas and apartments within Mohammed Bin Rashid Al Maktoum City, offering a world of possibilities at your doorstep.

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