Yas Mall to be showcased at MAPIC

Aldar Properties, Abu Dhabi’s leading property development, investment and management company today unveiled plans to build a signature Super Regional Mall as part of Abu Dhabi’s premier retail and leisure destination at Yas Island.

Leading retailers, property developers and investors attending MAPIC, one of the world’s major retail real estate events, will have a closer look at Aldar’s “Yas Mall”, a Super Regional facility which will provide in excess of 700 retail and catering units including four major department stores and six hotels.

The Super Regional Yas Mall will serve not only the local and regional markets but also the millions of tourists visiting Yas Island’s host of tourist and leisure attractions, including the world’s first Ferrari Theme Park, a water park and the 2009 Formula 1 Yas Marina Circuit which will host the Etihad Airways Abu Dhabi Grand Prix in November 2009

“The Mall will serve one of the most affluent populations in the world, with Abu Dhabi already ranking among the world’s top list in terms of GDP per capita. The capital’s local population is expected to increase by 40 % in the next five years. By then, Abu Dhabi hopes to draw some 2.7 million tourists. Yas Mall , on account of its strategic location will be best placed to serve both the national and international customer,”

comments Mohammed Al Mubarak, Aldar’s Chief Commercial Officer

The Yas Mall will feature a fantastic line up of brand name stores from around the world, along with the world’s most dazzling video and water displays. It will be the focal point for the community playing host to a variety of tastes and budgets, special events, exclusive exhibitions and cinema premieres.

Comments Philip Vaughan, Director of Retail Development, Aldar Properties:

“MAPIC is a great opportunity to reveal details of Aldar Super Regional Yas Mall. We are also keen to show investors and industry leaders the progress across our entire retail portfolio. On completion in 2011, the Mall’s retail area will amount to some 460,000 m2 and together with the adjoining theme parks will total a massive 780,000 m2 of retail and leisure.”

Yas Mall will be directly connected to the themed attractions on the Yas Island, including the Ferrari World Abu Dhabi theme park and the water park. There will be high level dining terraces and garden areas as well as a lush interior environment and beautiful water features, all contained under the one spectacular roof.

The design of Yas Mall has been inspired from the best retail destinations in the world to create something unique and inspiring to visitors. Extra emphasis has been applied to create a uniquely positive customer experience, through accessibility and tenant mix.

“Our participation in MAPIC is expected to encourage greater international retail investments in Abu Dhabi, and defines Yas Mall as one of the world’s largest lifestyle, shopping and entertainment destinations”

added Vaughan.

MAPIC on it’s 14th edition, will have over 2,300 retail developers from 71 countries, and more than 1,050 exhibitors with a comprehensive range of retail real estate projects, that will offer an incomparable perspective of the sector.

ALDAR to establish boating hub in Abu Dhabi

ALDAR Properties, PJSC, Abu Dhabi’s leading integrated property development, investment and management company, announced today that it has created a new subsidiary dedicated to transforming Abu Dhabi into an international luxury boating destination.

The new entity, ALDAR Marinas, will provide a broad range of leisure marine facilities and services that constitute an integral part of ALDAR’s waterfront developments. The first marinas to become operational are located on ALDAR’s premier Yas Island and Al Raha Beach projects. Each marina will have its own identity and will provide state-of-the-art facilities for the yachting community from entry level boating to destination yachting.

Additionally, ALDAR Marinas will provide a comprehensive boat service yard incorporating a spectrum of associated marine services.

The Yas Marina, surrounded by the Formula One race track, will provide berthing for luxury yachts to 100 meters as well as guest berthing. The exclusive Yas Yacht Club located at Yas Marina will feature fine dining facilities and provide prime viewing of the Grand Prix race track. Guests at Yas Island Marina will have an ideal location from which to enjoy access to the Yas Island theme parks, golf course and five star hotels.

“Marinas are a salient feature of the world class waterfront communities we are building at various sectors in our waterfront projects in Abu Dhabi coast, and it is only natural that these facilities are run and operated to world-class standards to provide the residents of our communities and visitors of our unique leisure destinations with the ultimate in services and facilities,”

Ronald Stephen Barrott, CEO of ALDAR Properties, commented while speaking at the launch of this exclusive facility.

“The vision of ALDAR Marinas is to create a safe, sustainable and enjoyable recreational boating culture in Abu Dhabi and lead Abu Dhabi into becoming a premier boating destination. With the provision of world-class marina facilities and affiliated operations that enhance ALDAR’s premier waterfront development projects, the Marinas will command the highest integrity that is respected by our customers, competitors and the community,” he added.

Designed to take advantage of the tranquil azure waters of the Arabian Gulf and many islands surrounding Abu Dhabi, ALDAR marinas will be a year-round boating destination.

“We also aim to add value to the joys of boat ownership by taking complete responsibility of an owner’s asset and develop a lifestyle for all socio-economic groups within the leisure boat category,” Barrott further explained.

WAM/SA

Aldar revises Noor Al Ain development

Aldar Properties yesterday announced that it was revising its Noor Al Ain project in Al Ain to cope with new guidelines developed by the Abu Dhabi Urban Planning Council (UPC).

The revised Noor Al Ain multi-use development will feature a mix of residential, office, retail, luxury, and entertainment facilities, at the heart of Al Ain.

Aldar will establish several residential buildings, a retail centre, a hotel, class “A” office space, and a host of entertainment and leisure facilities that will set the development apart as a sought-after destination. The height of the buildings will be reduced in line with the new guidelines of the UPC. These guidelines are intended to preserve the unique architectural pattern of the oasis city.

“Aldar and UPC and a number of other developers and consultants have been working closely on a new set of guidelines that will evidently be integrated into the Urban Structure Framework Plan for Al Ain,” said Ahmed Ali Al Sayegh, Chairman, Aldar Properties. “Aldar is keen to bring its heralded concept of integrated development to Al Ain and will do whatever it takes to ensure the culture and heritage of the area are preserved.”

The hallmark of the development will be Noor Al Ain shopping centre, which will provide 160,000 square metres of retail space. Combining value-for-money everyday items and a wide array of high-end luxury brands from around the world, this retail centre will cater to the versatile needs of shoppers.

Integral to this development are spa, and multi-screen cinema facilities that promise to transform the shopping centre into a comprehensive entertainment experience. While the rooftop gardens will bring the greenery effect into the interior, a fun-triggering water park and an indoor beach will help make the beach life experience a yearlong option for the residents of this inland city.

The project aims to transform Al Jimi Mall into a development that will enhance Al Ain’s attraction as a premium leisure destination. The multi-use development is set to become the focal point for more than 500,000 residents as well as visitors who are lured by the Garden City’s natural beauty and other tourist attractions.

Falah Al Ahbabi, UPC General Manager, said: “The Urban Structure Framework Plan for Al Ain will be announced in the coming months and we at UPC appreciate the co-operation that Aldar has shown in revising the Noor Al Ain to adhere to the principles of the UPC. This shows the constructive partnership between the government and private sectors to serve Abu Dhabi’s 2030 Vision.”

Emirates Business

90% of IREIS 2009 space reserved by real estate companies

Real estate giants from the UAE and other countries will gather in Abu Dhabi in January for a major property show and organizers said nearly 90 per cent of the exhibition’s area has already been booked.

Dome Exhibitions will organize the January 27-29 Abu Dhabi Real Estate and Investment Show - IREIS 2009, to be held under the patronage of H.H Dr. Sheikh Sultan bin Khalifa bin Zayed Al Nahyan.

“Property companies from the UAE and other countries of the region are now vying to grab the remaining area of the exhibition,” Dome Exhibitions said.

“The fifth IREIS edition, which coincides with a construction upsurge in the UAE in general and Abu Dhabi in particular, will be a chance for major real estate developers from the region and the whole world to view the latest investment opportunities in this sector.” The Show will attract such major property companies as Tameer; the platinum sponsor of this event, Sorouh, Aldar, Al Qudra and Hydra.

According to real estate sources, property projects worth nearly Dh1.2 trillion are being carried out in the UAE, including Dh300 billion in Abu Dhabi alone.

They noted that the real estate sector has become a major contributor to the country’s gross domestic product given its rapid growth over the past years.

The sources expected sustained growth in demand for housing units in Abu Dhabi and other UAE emirates in the light of the economic and social boom through which the country is passing.

“The 2009 edition of the exhibition will be an opportunity to view the major projects being carried out or planned in the UAE and the region given the wide participation by major property companies as well as finance firms, banks and real estate brokers. This means this show will be a significant platform to finalize large deals in this sector,” Dome Exhibitions said.

It said many real estate companies from the UAE and other Gulf countries have confirmed their participation and booked large spaces in the exhibition, adding that this demonstrates their strong interest in the event.

Besides showcasing their products, the participating companies will present their current projects and future investments.

“This means the event will present an important opportunity to national and expatriate investors to see those projects and future plans in this sector,” Dome Exhibitions said.

“There is a strong interest from many investors and companies to take part in this event as is evident from their planned participation in national pavilions that will constitute an umbrella for companies from the same country, including those from Egypt, Morocco and India.” “We are confident that this event will be a good chance for all exhibitors and investors to present their projects and this in turn will contribute to further expansion in this sector and achieve the interests of all concerned parties.”

WAM/MMYS

Emaar leads pressure on Dubai index

Emaar Properties’ stock declined to its lowest price in three years yesterday after it broke through its critical support level of Dh9 and closed for the first time at Dh8.77.

The decline in Emaar’s stock also created selling pressure on the Dubai Financial Market (DFM) General Index.

The stock was the leading player by the end of the week, topping the most active lists by both value and volume. Other leading stocks in the market, including DFM and ENBD, declined during the session, leading to more pressure on the index.

The DFM closed at 4689.17 yesterday, after it lost 59.59 points, or 1.25 per cent.

The index also entered its critical support channel of 4650-4700 points after managing to close over this level for the previous four sessions. The index broke through its support level with increasing turnover rates as trade volume reached 149.3 million shares at a total value of Dh740.1 million, nearly double the turnover in the previous session.

The market was fluctuating during the last few sessions without breaking the support level, giving negative indicators that the downturn trend will continue on the short-term.

Fears increased among analysts that the negative sentiment in the market may lead the index to further loses and reach the level of 4400 points, while others expected that the range of 4550-5600 points would be the last wave in the current downturn trend.

Despite increasing expectations that the downturn trend has lost its momentum and the high selling pressure in the market have started to ease, there are increasing worries that the deep loses would affect the expected reversal.

Analysts also noticed continued selling pressure during the downturn trend and this is creating more negative sentiment among many investors.

“The DFM is projected to lose another 100 points which is the expected base of the market. The continued decline has several factors such as the tightness in liquidity, low turnover and continuous selling pressures. However, we expect the base will start formulating by the third week of Ramadan, or probably by the end of next week,” said Ahmed Al Rawi, head of trading at Dubai Financial Brokerage.

“Foreign investors are still selling their holdings, while local investors have not returned to the market yet.

“We expect these selling pressures will ease after a few sessions and new liquidity will start entering the market very soon. Emaar’s stock reached very low levels and it may decline to about Dh8.50.

“However, we expected a short rebound early next week. The current wave of declines is expected to be the last wave and any reversal in the market is expected to attract huge liquidity,” Al Rawi said.

ADX continues its downturn

The Abu Dhabi Securities Exchange (ADX) continued its downturn trend to an important support level of 4300 points. The index closed yesterday at 4311.01 points, after it lost 33.05 points, or 0.76 per cent.

Aldar and Sorouh, the leading active stocks in the market, declined through their support levels, with Aldar closing at Dh8.95 and Sorouh reaching Dh6.89. Mohamad Al Beheiri, head of trading at Amana Financial Services, said the next support level for Aldar would be Dh8.50 while Sorouh would face a support level at Dh6.25. He added that heavyweight stocks would continue to support the ADX index during the near future despite the long-term trend in the market being on the downturn.

Emirates Business

Aldar leads the way in Abu Dhabi property resale monitoring

Abu Dhabi’s master developers are following in their Dubai neighbours’ footsteps and beginning to self-regulate the resale of developments in order to safeguard against speculators ‘flipping’ their purchases. This is, alongside soaring construction costs, is what analysts attribute the unchecked price rises in many projects in Dubai to, especially during the course of their development.

Aldar Properties, the largest developer in the emirate, whose backers include government investment vehicles, last month revealed that it would impose restrictions on resales of its projects, especially in the off plan stage.

The changes will be implemented on all apartment and villa sales from October and be applicable for all of the company’s future projects.

Roland Barrott, Aldar’s CEO, said in an interview with The National newspaper that the company had ‘a new way of dealing with the issue’ of property resales, but refused to be drawn on exact details.

Industry insiders have added that fellow master developers such as Sorouh are likely to also bring in internal guidelines covering their future projects, in the absence of compulsory government legislation.

Abu Dhabi-based Al Qudra holding also charges a fee of 2% of the current market value of a unit on all transfers.

The moves follow similar initiatives by master developers in Dubai. Government-backed Nakheel, the company developing the Palms, has ensured that buyers investing in The Trump International Hotel and Tower are required to hold onto their units for a period of 12 months before they can sell them on.

Emaar has also announced a new requirement for investors to have paid 30% of the total contractual amount before they can resell their units.

Abu Dhabi has been able to take lessons from the teething problems that Dubai has undergone with a glut of real estate projects announced and speculators fuelling localized inflation by pushing the market value of developments up, by sometimes up to 250% between announcement and handover.

The lack of liquidity behind some of the purchases, with some speculators only paying the first installments and then looking to offload units at a premium before the next charge arises, also leaves developers open to financial uncertainty in the face of price fluctuations.

According to a report by the Royal Institution of Chartered Surveyors, approximately 80% of real estate sales in the UAE’s capital are considered speculative investments, a higher ratio than now exists in Dubai, where the Land Department has now said that all off plan sale contracts must be registered or be deemed invalid.

This marks a further step in the extension of legislative control over the emirate’s property sector.

It remains to be seen how long it will take before the Abu Dhabi government implements similar safeguarding measures across the board, to protect the city’s growth plans as much as possible from outside influence.

With the government planning to invest $275bn in infrastructure and real estate projects over the next five years, and prices rising faster than in the rest of the UAE (the Al Reem developments show an increase of 83% so far this year) the sooner regulation is tightened to stop the market from overheating, the safer investors will feel.

AME Info

Probe to impact markets

The police investigation into alleged financial irregularities by top executives at mortgage lender Tamweel and developer Nakheel will cast a shroud of uncertainty tinged with gloom on the stock markets this week.

The latest round follows similar probe into Deyaar Development and Dubai Islamic Bank earlier this year. “Isolated bad news has a way of snowballing into a negative sentiment and we expect property stocks to take a further hit on the Dubai exchange this week,” said a trader on the Abu Dhabi Securities Exchange on condition of anonymity.

Nakheel has denied any “embezzlement”, while Tamweel has confirmed simply that an investigation is under way. Istithmar World, a subsidiary of Dubai World, has also confirmed that the roles of two senior employees are being investigated for possible financial irregularity while they were employed with another company. The company is Tamweel.

“The Deyaar investigation earlier this year caused a run on the company’s stock, with a contagion effect on other property stocks. Last week’s news will extend the weakness and Dubai can be expected to test the 4,700-points level,” the Abu Dhabi-based trader said.

After a torrid first half of August, investors’ hopes that equities will rebound are likely to be shattered this week. The most that traders would probably settle for is a week of consolidation.

Last week, both the Dubai and Abu Dhabi bourses suffered their largest one-day declines since January and although the capital’s index is now on a two-session winning streak, it is unlikely to escape a similar malaise to the one engulfing Dubai. The ADX lost five per cent last week, while the Dubai Financial Market fared little better, dropping 4.43 per cent and will open today on 5,018 points.

“We expect range-bound trading for the next month,” said Julian Bruce, EFG-Hermes director of institutional equity sales.

Emaar will again be key to Dubai’s fortunes. The property giant slipped to an 12-month intraday low of Dh9.58 that triggered Wednesday’s 2.6 per cent rebound, but this gave way to more selling the day after, meaning Emaar will open on Dh9.66 today and down 35 per cent in 2008. Tamweel will also be under selling pressure.

Aldar Properties will dominate trading on the ADX. The developer is a couple of percentage points below its foreign ownership limit of 40 per cent and will see more buying this week because it is held by a significant number of different investment vehicles.

Emirates Business

Dubai stocks suffer worst fall in months

The Dubai Financial Market General Index yesterday plummeted 2.97 per cent, its biggest one-day drop in six months, falling 155.75 points to 5,094.56. The Abu Dhabi Securities Exchange Index slid 121.56 points or 2.55 per cent to close at 4,652.42.

The market capitalisation fell by Dh21.67 billion on the day.

Fears over the sustainability of property price rise in the UAE and whether banks are going to restrict lending to the real estate sector weighed on in the minds of the investors.

In Dubai, real estate stocks declined 3.98 per cent followed by the fin-ance and investment sector, which lost 3.05 per cent. Though it had the highest turnover of Dh178.36 billion, Emaar Properties was one of the major losers, declining 3.83 per cent to Dh10.05. Arabtec led the list of decliners, plummeting 9.91 per cent to close at Dh15.45. Mortgage lender Tamweel dropped 4.41 per cent to Dh6.50.

In Abu Dhabi, Aldar Properties and Sorouh Real Estate, among the top three stocks in terms of turnover, retreated 7.39 per cent and 6.42 per cent respectively. Overall, the real estate sector index dropped 6.79 per cent.

Morgan Stanley last week issued a report warning property prices, particularly in Dubai, would come under pressure - it forecast a decline of 10 per cent - with an oversupply expected in 2009. Also, the Abu Dhabi Chamber of Commerce and Industry published a report saying that the banks should be careful in their exposure to real estate and construction sector to avoid the US scenario. Gulf News had reported on Sunday that the Central Bank could tighten lending standards to curb the rise in real estate sector loans.

“I think there was some very aggressive selling from the GCC investors in real estate,” said Julian Bruce, director of foreign institutional sales, EFG-Hermes. “There are a few voices currently questioning the sustainability of property price rise in the UAE, Dubai in particular. In addition to the [Morgan Stanley's] report, there is also speculation regarding a government legislation related to restriction of flipping on off-plan sales. Now obviously if you see domestic investors perceiving that their opportunity to make money in some of these markets is going to be restricted, then the financial reaction to that is to sell real estate stocks.”

However, the market decline at this time of the year is similar to what happened during the period preceding Ramadan last year, according to Mousa Haddad, head of trade, discretionary mandate, National Bank of Abu Dhabi.

“So in the weeks before Ramadan we will see further declines. Volumes are getting lower, bids are declining - so basically there was pressure on the selling side - I would term it as ‘panic selling. ‘ But the fact is that the fundamentals are very strong - for real estate, banks and telecom.”

Among other factors, Bruce said, investors seemed to be shying away from emerging markets in general, and there was selling on Friday, the compulsion for which came from Russia. “A lot of investors investing in the Middle East and Northern Africa (Mena) region do have an exposure to Russia as well,” he said.

Elsewhere in the region, the Tadawul index of Saudi Arabia fell to a new low for the year, closing 3.55 per cent lower at 7,884.14. Bahrain’s index closed 0.82 per cent lower at 2,731.02. Qatar also declined 1.81 per cent to end at 11,297.86.

Gulfnews

ALDAR and IDG join hands to launch management development programme

ALDAR Properties, the leading integrated property development company, has commissioned the Inspirational Development Group (IDG), a leading UK provider of development programmes, to run a special management development programme for ALDARs UAE graduate and scholarship students. IDG has a partnering agreement with the Royal Military Academy Sandhurst allowing it to provide a multitude of management development courses on the campus of the Royal Military Academy Sandhurst. Under the agreement signed today with ALDAR, some 20 to 30 scholarship students and 15 graduate development programme participants will benefit this year from a multitude of programmes aimed at developing their leadership skills.

Ronald Stephen Barrott, CEO, and ALDAR Properties, said: “Developing nationals and giving them access to state-of-the-art educational knowledge is a top priority for ALDAR and an integral part of its social responsibility. We do hope this programme will contribute in the most effective way to the process of building the future business leaders for Abu Dhabi, a process that stands at the core of ALDAR strategy.” Scholarship students will meet annually at the Royal Military Academy Sandhurst. Their programme will focus on experiential leadership. Members of the Graduate Development Programme will spend their second year at Sandhurst and their first and third in the UAE.

“For the graduates, it is a modular built into their 3-year program aimed at providing graduates with a tool box and motivation to succeed in the work place, manage their careers and develop management and leadership capabilities which will fast track their career growth,” commented Abdalla Zamzam, Chief Economic and Administration Officer, ALDAR Properties.

Tim McEwan, lead consultant from IDG said “We are very pleased to have this opportunity to work with ALDAR and their Graduate and Scholarship intake. They are the future of the company and indeed the nation. We are very privileged to have the partnering agreement with the Royal Military Academy Sandhurst which we have had since 2001. Sandhurst provides a unique leaning environment and many transferable leadership skills - its not about shouting orders but about knowing your people and understanding what makes them tick, communicating clearly and effectively and developing a sense of selfless commitment to something larger than ourselves. We look forward to working with the ALDAR Graduates and watching them grow as leaders and individuals”

ALDAR announced in June that it was offering ten sponsorships for outstanding students to pursue their studies abroad, in coordination with the Ministry of Presidential Affairs. ALDAR announced in May that it was sponsoring the chair, “Dean of Business Studies”, at the Higher Colleges of Technology “HCT”. Under the agreement, ALDAR will sponsor five UAE nationals in HCTs real estate management programme.

ALDAR has already announced a host of other educational initiatives in association with world-renowned academic and professional institutions. These included the Leadership Excellence Applied Diploma (LEAD) Program, launched in partnership with Cambridge University and Knowledge Horizon, and the RICS qualification programme, in conjunction with the Royal Institution of Chartered Surveyors. The LEAD programme aims to inspire a new generation for the UAE of tomorrow, while the RICS seeks to underpin professional standards in ALDARs business using the RICS standards within working practices and also to increase and promote membership within the eligible workforce. The programme saw scores of ALDAR employees, including the first UAE national, qualify for the RICS membership.

Yas Island on schedule

ALDAR Properties, the leading integrated property development company said yesterday it was on schedule for completion of phase 1 infrastructure work on its multi-faceted entertainment destination, Yas Island.

Key milestones have been achieved on the multi-billion dollar project, with over 30% of the infrastructure of phase 1 complete, with the remaining scheduled for completion well before the 2009 Formula One Etihad Airways Abu Dhabi Grand Prix.

Commenting on the progress of ALDAR’s Yas Island, Ronald Stephen Barrott, CEO of ALDAR Properties stated, “This exceptional performance and the ongoing achievements by the Yas Island development team highlight the dedication and commitment that ALDAR puts into its projects. Yas Island is set to become a world famous tourist attraction for Abu Dhabi, and it will contribute to the tourism industry of the United Arab Emirates.”

ALDAR is currently in the process of deepening the canal leading to Yas Island to allow super yachts to anchor in the Royal Yas Marina, providing excellent views for the audience to the Yas Marina Circuit. The Royal Yas Marina wall and excavation is currently 90% complete. The marina is dammed to complete the remaining construction in the dry and is scheduled for flooding in the 2nd quarter of 2009. .

The Yas Marina Circuit is progressing very well. The pit building and the four grandstands for the Abu Dhabi Grand Prix’s spectators will be completed by mid-2009, with concrete works for the top floor levels nearing completion and installation of mechanical, electrical and plumbing infrastructure now underway. Grading and shaping works in preparation for construction of the pavement for the race track itself are well progressed..

Yas Mall and parking structure piling works are also progressing on schedule. The highways and bridges are well advanced and will be complete for race day.

“Yas Island infrastructure will be ready for the expected visitors for this inaugural event. The development team and workforce have worked with exceptional efficiency, and we are very pleased with their efforts,” commented Steve Worrell, Project Director, Yas Island. “With three vehicle entrances to Yas Island for the race day, race goers will experience easy traffic flow through these access points. “

The Yas Island project covers an area of 25km2 and is set to become a cornerstone of Abu Dhabi’s fast growing tourism industry. In addition to racing circuit, the development will include Ferrari World Abu Dhabi, a Warner Bros. Theme Park, five-star and boutique hotels, a water park, 356000 square meters of retail space, a links golf course, 3 marinas, restaurants, various entertainment facilities and luxurious residential property.

Ronald Stephen Barrott, CEO, ALDAR Properties, concluded: “Yas Island is just one component of ALDAR’s diverse development portfolio, which is attracting considerable worldwide interest and inward investment. The unique tourist destination will complement scores of residential, business, retail, and other community-oriented projects that set ALDAR apart as a leading integrated developer.”