Work on Dh20bn Al Ghadeer starts

Abu Dhabi-based real estate developer Sorouh Real Estate has started infrastructure works of the Dh20 billion-Al Ghadeer development, said a senior official. The project is located on the Dubai-Abu Dhabi border.

“The company does not have any problem with regard to liquidity at present. It collected Dh4bn loans from international and local finance institutions through sukuk. The company has money to complete its projects,” Gurjit Singh, Sorouh’s Chief Property Development Officer, said.

He said the ongoing construction of Al Reem Island project has exceeded expectations and the firm is trying to finish the project before the scheduled date to take advantage of the drop in prices of building materials, especially iron.

He called banks to continue financing real estate developments in the UAE, in general, and Abu Dhabi, in particular. On the delay of Al Lulu Island project launch, he said: “Months before the start of the crisis, Sorouh announced the project’s design will be complete by this year-end. It is about to complete the final engineering and architectural design, which is due to be unveiled in the beginning of 2009.”

Zawya

Developers see challenges ahead

Despite tight credit weighing down on prices of property purchased in the secondary market, developers say a combination of continued strong demand and limited supply will sustain prices in the long term.

Prices have dipped in the past few days after dramatic growth in the first half of the year as property speculators found the supply of ready buyers drying up, while terms for financing home ownership have become more stringent.

“The severity of the global situation will bring challenges. Our real estate sector may see some short-term margin compression, mostly affecting the smaller developers, but overall the fundamentals have not changed and it [the sector] will prosper over the coming years,”

said Abubaker al Khouri, the managing director of Sorouh, in a speech today in London.

“At the heart of that future growth lie the fundamentals of strong demand and as yet limited supply,” he said, adding that he saw Abu Dhabi as the best property market worldwide. Earlier this month, the Chamber of Commerce forecast a shortage of at least 28,000 units this year.

Developers have not reduced their prices for new properties, but they are shifting their focus from speculative buyers to end-users.

“What we have seen in the last six months is more-informed buyers, because now the market is approaching what we call the end-user market,”

said Zaid Ghoul, the chief financial officer of the Dubai-based developer Union Properties.

“So they will be more interested in hooking themselves up with a developer that has reputation and that is large enough to deliver. We are raising prices as we go along because we are releasing a product that is almost complete. We are targeting the end-user market.”

Prices of phase five in the developer’s Uptown project in Motor City are ranging between Dh1,450 (US$395) and Dh1,550 per square foot, compared with Dh700 and Dh800 last year for similar types of units in previous phases. Given the current shortage of supply, developers whose projects are near completion focus on their near-term availability. Profile group is advertising Marina Heights, two towers in Abu Dhabi, as “the first project to be completed on Al Reem Island”. Units are on offer at no less than Dh2,950 per sq ft. Hydra Properties’s average residential price on Al Reem Island is about Dh3,000 per sq ft, with office space going for Dh3,700.

The only middle-income freehold area in Abu Dhabi remains Al Reef, from Manazel Real Estate, where units are changing hands at Dh1,100 per sq ft. “Although prices have recently dropped from what some may say were unrealistic prices, it is important to note that they have risen fast over the last months and people are still making profits,” said Michael Wilde, the general manager of Manazel. “Our Al Reef units are still, even in these difficult times, selling at 70 per cent to 80 per cent above their original values, and are expected to increase in value once the market realises there is still a fundamental demand for quality completed product as they come on stream.”

In Dubai, prices for off-plan homes have also fallen by about 10 per cent on the resale market but some segments are still in strong demand, according to developers. Mr Ghoul noted that “the villa type hasn’t yet been fully saturated” nor has office space, or middle- to low-income housing in low-rise buildings comprising apartments of three bedrooms or less.

Developers see the recent price drop and slowdown in sales as linked to negative sentiment about the global economy, rather than as tied to fundamentals of supply and demand.

“People are panicking. They need more information. Abu Dhabi is one of the healthiest markets in the world,”

said Sulaiman al Fahim, the chief executive of Hydra Properties. “There is no oversupply”.

In any case, the current crisis will not leave developers unaffected, according to analysts. “Some smaller developers that don’t have much cash will have problems, as some banks have already stopped backing them,” the head of sales at one property broker said. “I have quite a few plots of land to sell and can’t do so because those who will have to develop them are thinking twice before buying.”

Mr Khouri from Sorouh predicted a “rush to quality” by consumers and banks, both of which would look for solid real estate developers and developments to invest in. The larger and well capitalised companies such as Sorouh, which has projects worth more than Dh70 billion under development, would benefit from this, he suggested.

As sales slow, some developers are finding ways to make their projects more attractive to investors and buyers. The developers behind Eco Towers, a pair of environmentally sustainable buildings within the Danet Abu Dhabi project, are requiring buyers to only pay a 2.5 per cent booking fee and are offering a more relaxed payment plan, executives said at a launch event today.

Luis Loureiro, the national head of sales and leasing services for Colliers International, said that most developers were waiting until early next year to make decisions about easing payment plans, but since Eco Towers was already 30 per cent financed by developers, they were able to act earlier.

Others focus on “education”. “Starting in mid-November,” Mr Fahim said, “I will stop travelling to do a full campaign… I will myself be talking to the investors, telling them how to re-sell and how not to be greedy, and how they should wait to the long term. It is more about education.”

The National

Mayadeen unveils Dh1.6b project in Abu Dhabi

National Ranges Company (Mayadeen), a Kuwaiti shareholding property development firm, has launched Aurora, its Dh1.6 billion landmark project in Abu Dhabi. Located in Shams on Al Reem Island, the project includes the construction of two residential towers, which will be 53 stories each and stand 208 meters high.

The towers will feature 960 apartments, ranging from one bedroom to four bedroom penthouses and duplex rooms. The project also includes the construction of a 14-storey commercial tower, which will offer 112,000 square feet of commercial space.

For the convenience of the future residents, the project will have a canal promenade with retail space and a 12-storey, state-of-the-art parking building that can accommodate 1,674 cars.

Engineer Naser Ali Al Attar, Mayadeen chief executive officer, said the initial phase of shoring and piling work has been completed and the company is currently in preparation for the second phase, which will include work on the foundation structure. “Mayadeen has signed with five contractors for this project and progress is on schedule,” he said.

Al Attar noted that the demand for residential units in Abu Dhabi is still outstripping the current supply.

“After the introduction of new laws and the establishment of a large number of local and foreign companies to the market, we are beginning to witness a large number of investments in Abu Dhabi’s real estate market and this looks set to continue over the upcoming decade,”

said Al Attar.

Gulfnews

Solace Properties unveils Dhs700m project

Solace Properties, an Abu Dhabi based developer, unveils Solace Livings, a mixed use residential and commercial tower valued at Dhs700m at Al Reem Island, Abu Dhabi.

Solace Livings is an iconic 30 storey waterfront development located directly on sea in the Central Business District of Al Reem Island. The Master Developer is Tamouh.

Amenities include swimming pool and gymnasium. Located on the main promenade & close to Central Park with full view of sea.

SPF Realty, a Dubai based brokerage firm, has been awarded sales & marketing rights of the project.

Project was showcased at SPF Realty Stand No. RQ 30, Shk. Rashid Hall, Cityscape Dubai.

“We would like to show our appreciation to the organizers of Cityscape event for putting forward such an admirable policy.The intense attention we’ve received for our project serves to support our certainty that we are on the precise trail.”

said a company spokesperson.

AME Info/Press release

Michael Schumacher World Champion Tower launched

 

The Michael Schumacher World Champion Tower (MSWCT) will be located in a spectacular setting in the Central Business District of Reem Island, Abu Dhabi, capital of the United Arab Emirates. The wharf tower will emerge from the sea, integrated beautifully with the water on the seafront and comprise a luxury marina.

Developed by Marasi and PNYG:COMPANY, the tower will be an inspirational architectural landmark, epitomising the same fusion of high technology and human tenacity that powered Michael Schumacher to his sporting achievements.

Michael Kutschenreuter, Marasi CEO, said, “Marasi will specialise in providing solutions for people who wish to bring together their residential location and immediate access to their yachts. In the MSCWT cutting edge technology and beautiful design will merge to create a unique living community with a spectacular backdrop.” The MSWCT Reem Island, the first of many such projects to come for Marasi, will become one of the world’s most coveted residential addresses, blending a unique wharf concept with unprecedented luxury living.

PNYG holds the exclusive rights to Michael Schumacher Branded Luxury Real Estate and, together with Marasi, have ensured that the MSWCT incorporates the qualities and values that made Michael Schumacher so successful as a racing driver. Every feature, from the building techniques used down to the smallest details contained within, have been designed to reflect the standards that made his racing career so successful.

Designed by PNYG:LAVA , PNYG:COMPANY’s architectural division led by Chris Bosse and Tobias Walliser: renowned for their cutting edge organic approach to design . The MSWCT in Abu Dhabi will be the first of only seven such towers to be built around the world. The towers will represent each of the seven Formula One (F1) World Championship titles that Michael Schumacher won during his career.

Sales for the MSWCT will be handled by Deyaar. Markus Giebel, Deyaar CEO, said “Deyaar, as the Gulf region’s fastest growing developer, is delighted to be associated with such a prestigious project. The MSWCT is a unique tower that provides a company like Deyaar with the perfect opportunity to enter the iconic building market.” In recognition of everyone’s responsibility to the environment, the tower’s ecological impact will be limited. In order to achieve as small a carbon footprint as possible Marasi will be employing the most conscientious and advanced methods available to date.

Images

Dar Al Dhabi Real Estate announces the unveiling of the 1st phase of The Wings

Soaring 300 metres, The Wings are positioned to redefine the Abu Dhabi skyline. Dar Al-Dhabi Real Estate unveiled the first phase of the stunning residential and commercial development at Cityscape Dubai 2008. The Wings, located on Al Reem Island’s only marina yacht club, represent the heart of the Dar Al Dhabi Project.

The Dar Al Dhabi Project’s towers are destined to be a landmark, inspired by the one of the Arab world’s most significant symbols of strength and majestic beauty, the falcon. The Wings architectural structure is a direct representation of the falcon’s elegant wings which will welcome onlookers to Al Reem Island. The East Wing is a residential tower, comprised of 1, 2, and 3 bedroom apartments, with penthouses and townhouses in the uppermost floors of the tower commanding unimpeded views of the island, Abu Dhabi and the Arabian Gulf. The West Wing, on the one hand, is a commercial tower equipped with abundant parking spaces and world-class facilities and services that will undoubtedly make it one of the most prestigious business towers.

“With The Wings’ residential and commercial towers, we are introducing an enviable standard for living and work spaces that beautifully combine luxury and state-of-the-art technology,”

said Abdulwahab F. Al-Ameer, Chairman and Managing Director of Dar Al-Dhabi Real Estate.

Boasting over 2 million sq. ft of high-tech office space and 2,500 luxury residential apartments, duplexes and penthouses, and over 60,000 sq. ft of boutique retail area, residents and visitors will enjoy wealth of services and amenities and a breathtaking sea and city view. In addition to The Wings (1 Commercial and 1 Residential), the Dar Al-Dhabi Project comprises two 35-storey Al-Sharq Towers (2 Residential) and two 7-storey Al-Seef Towers (1 Commercial and 1 Residential).

“This development aims to meet the burgeoning demand for world-class facilities and services for both residents and business executives alike in this booming city,” added Abdulwahab F. Al-Ameer. Because it will serve commercial, residential and retail purposes and employ international standards, the Dar Al Dhabi Project has quickly attracted discerning investors wishing to align themselves with superior property investments that support the long-term economic development of Abu Dhabi.
Expressions of interest for sales will be welcomed for all six towers comprising the Dar Al Dhabi Project during Cityscape Dubai 2008.

Zawya

The Gate Towers 6 Billion AED development contract awarded to Arabian Construction Company

Sorouh Real Estate PJSC and Tameer Holding Investment LLC today announced the award of a AED 6.2 Billion contract to Arabian Construction Company (ACC) to build The Gate Towers, a joint venture project, situated at the entrance of Sorouh’s flagship project, SHAMS Abu Dhabi, on Al Reem Island.

This new contract will see ACC construct six of the eight towers that make up The Gate District, covering a construction area of 1.1 million square metres. Piling work is scheduled to start immediately and construction of the towers will begin January 2009, to be delivered in phases over the next four years. The Gate Towers will be a mix of residential, commercial, retail, serviced apartments and a hotel.

Mounir Haidar, Chief Executive Officer, Sorouh, stated:

“Sorouh is pleased to announce its continued partnership with ACC. As a leading real estate developer in the United Arab Emirates, Sorouh partners with companies that reflect our own professionalism and commitment to creating innovative real estate projects. We are looking forward to working with ACC on this phase of our exciting development.”

Dr. Abdallah Shaaban, Managing Director, Tameer Abu Dhabi, added:

“Tameer has an excellent relationship with ACC. This partnership adds value to our project with Sorouh, creating a spirit of excellence and efficiency where all three parties work together to produce an innovative and exciting development for Abu Dhabi.”

The contract is seen as a strategic partnership between Sorouh, Tameer and ACC, and will see all parties sharing roles and responsibilities such as procurement and engineering.

ACC’s Managing Director Hamed Mikati said the award of this contract shows that ACC has once again gained the trust of Sorouh.

“We are looking forward to completing this unique project which is set to change Reem Island’s ever growing skyline,” he said. “We have been active in the UAE for over 40 years and are very proud to have contributed in the growth of the country.

“We are very proud to extend our relationship with Sorouh and Tameer and we thank them for their confidence in ACC.”

SHAMS Abu Dhabi will be a completely new self-sustaining city designed around canals and parks which integrates world-class master planning practices and extends the lush green of Abu Dhabi’s landscape. In addition to the Gate District, Shams Abu Dhabi will feature several other unique projects including Central Park, Sky Tower, Sun Tower and Marina, and the Gate District.

ACC is currently building the Sky and Sun Towers in Abu-Dhabi for Sorouh, as well as Princess, the world’s tallest residential tower (414m high), and Elite Towers in Dubai for Tameer.

Zawya

Asteco set to unveil Dh2b Central Park project

Real estate and property services leader Asteco has won the contract for apartment sales of Central Park, Abu Dhabi’s newest residential tower. Representing an investment of more than Dh2 billion, the Central Park development comprises two towers offering 640 one, two and three-bedroom apartments.

The towers are located at an enviable location on the central park of the Shams on the Reem Island master-planned community overlooking the stunning Abu Dhabi skyline.

Due for completion in 2011, apartments are available on a freehold basis. Sales will be launched at Cityscape (October 6-9, 2008) and potential buyers can view the model at the Asteco stand in Hall 7, stand number 7G30 of the Dubai International Exhibition Centre (DIEC).

“We have seen an increase in demand for premium residential apartments in Abu Dhabi,”

said Jock Douglas, Asteco’s Sales Manager in Abu Dhabi.

“Although many projects are coming on stream, residents are not always satisfied with the quality, service standards, room sizes and facilities provided.”

“Al Reem is witnessing high levels of activity as some projects near completion and residential units are in great demand even at higher prices owing to the high levels of quality and design. Apartments on higher floors command values of almost Dh3,500 per square foot giving an indication of growing returns that can be expected,” Douglas added.

Strategically located to take advantage of the Arabian Gulf’s skyline, design has been conceptualised by leading architects, Gensler, who were also awarded the design contract for Tameer Towers, Abu Dhabi’s 7-star hotel. Al Hilal Bank are the financial partners.

Central Park buyers can opt for one, two and three-bedroom apartments with unit sizes starting from 970, 1,755 and 1,937 square feet respectively. All apartments are spacious, designed to maximise views, and will be equipped with fully-fitted kitchens.

In addition to the 640 contemporary designed apartments, the tower boasts swimming pools located on a garden terrace in a lush park-like environment, a social lounge, fitness centre and spa, business centre, lobby lounge, mail and package delivery rooms for residents, extensive private gardens, a day care centre and prayer room.

Central Park is being developed by the Sama Emirates Holding Group, a multi-disciplined company specialising in real estate development with a diverse portfolio of projects in Dubai and Abu Dhabi.

Kuwaiti developer to build two skyscrapers on Reem Island

Dar Al Dhabi Real Estate, a Kuwait-based developer, is planning to build two 300 metre towers on Reem Island that would be among the tallest in Abu Dhabi.

The project, called “The Wings”, will be located in Reem Developers’ Najmat section on the part of the island that faces Abu Dhabi. The towers – one solely residential and the other commercial – will be a “gateway to Reem Island”, said Alan O’Donnell, the managing director of Pure Real Estate.
Pure has been hired to manage the operations, marketing and sales of the Dh7 billion (US$1.9bn) project, which will also have 6,000 square metres of retail in a glass atrium at the bottom and a waterfront promenade along a marina. The Wings will be the centrepiece of Dar Al Dhabi’s larger Dh12.5bn project, which will have six towers in total and developments on plots behind and to the sides of the initial phase.

Mr O’Donnell said the project would launch sales of the first phase at Cityscape Dubai next week. The grim economic outlook in the world would actually boost Abu Dhabi sales because investors will want to put their money in safer environments, he said.

The National

First Dubai prepares to execute large development plan

First Dubai Real Estate Development Company, a subsidiary owned by Al Mazaya Holding, has successfully increased its capital assets from KD 22 million to KD 94 million in a two weeks period, thus enabling the company to proceed with its plan to take over First Waterfront Company.

First Dubai intends to raise its capital even further, to KD 100 million, within the first week of October.

Speaking on the subject, Vice Chairman, Khalid Esbaitah, said, “First Dubai is a successful example for one of Al Mazaya Holding’s investments. The company has achieved remarkable results in record time, including the execution of one of two of Dubai’s landmark projects – the Sky Gardens at Dubai International Financial Center; which was sold at a profit of KD 70 million, and the Marina Project located at Shams Abu Dhabi on Al Reem Island, in addition to an investment portfolio that includes such projects as The Villa, Queue Point at Al Liwan, and Dubai Residential Complex“

“First Dubai has increased its capital assets in order to expand its base of operation, including the taking over of the Waterfront Company. This move is an inevitable product of the Al Mazaya Holding’s awareness and understanding of the UAE market and its utilization in full of all available opportunities. The objective in taking over the Waterfront Company is to combining human and financial resources in order to ensure flawless execution of this project adding to the momentum of Al Mazaya Holdings and its various subsidiaries’ successes in the market thus far,” Esbaitah added.

“Al Mazaya has earned a good reputation among its investors, who have contributed eagerly to the increase of our capital assets, which was done in record time.”

Esbaitah said that First Dubai Company’s profits for the current year are expected to be exceptional as a result of the firm’s rapid and efficient fulfillment of its operational obligations.

He went on to say that this trend would more than likely continue over the next five years, as the execution of key projects such as the Waterfront and Shams Abu Dhabi developments offer investors a risk-free investment opportunity, which is expected to yield a 30% return.

About Al Mazaya

Al Mazaya Real Estate Development Co., listed on the Kuwait Stock Exchange and Dubai Financial Market, created a distinctive place for itself in the economic sector through the implementation of several major and vital projects across the region.

The company provides comprehensive real estate services and products across various fields, including housing projects that include high class and deluxe villas, vertical flats and accommodation buildings, office buildings and the purchase and apportionment of large spaces in selected areas.

The company’s record includes a number of outstanding projects. In Kuwait this consists of, (but not exclusively): Al Maha Villas, Al Mazaya Show Room (7 Zones), Al Roya, The View Point, Global Tower, and Kuwait Business Town. In Dubai their projects includes (but not exclusively): The Villa, Dubai Healthcare City, The Icon (1&2), Sky Gardens, Al Mazaya Business Avenue and Queue Point at Al Liwan, in addition to several other projects in Lebanon and Jordan.

Al Mazaya Holding has conducted several feasibility studies for strategic investment in number of property markets and has investments in others such as KSA, Bahrain, Oman and Qatar, with the aim of achieving high returns.

Arabian Business

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