The “Buy to hit” concept gains popularity

The “buy to let” hotel room concept is slowly starting to take off in the UAE as the financial crisis has created doubts about returns on investment in the property ­industry.

Al Jabal Real Estate, a Dubai-based property developer, will today announce plans to develop a 500-room hotel in Ajman, which will allow investors to purchase rooms and benefit from returns based on occupancy levels.

“If you buy a house today and rent it out, your investment return would be in the range of 5 per cent to 8 per cent, but if the hotel has 60 per cent occupancy, the investor’s returns would be in the range of 16 per cent,”

said Saeed Currimjee, the managing partner of Al Jabal Real Estate and Al Jabal Holdings.

“The management company will take a share in the profits, and the rest will be equally divided by the room owners, so no matter how many times your room has been occupied you would still get an equal share.”

The Crescent Star will be a 33-storey, four-star hotel-apartment property located in Ajman’s Marmooka City, an estimated 30-minute drive from the Dubai airport.

The management said it expected the project to be completed in 40 months, with an investment of about US$80 million (Dh293.8m). Prices will range from Dh547,500 for a 520 square foot room to Dh1m for a 2,000 sq ft room. “The rooms are fully furnished and Wi-Fi is free of charge,” said Mr Currimjee, adding there were no limitations on foreign investors.

Not to be confused with timeshare

Mr Currimjee said the buy-to-let concept should not be confused with timeshare.

“With timeshare, you don’t get a return on your investment, you just get time slots where you can spend your holiday in a certain destination,”

Already an emerging trend in Europe, the buy-to-let concept was introduced in the UAE by the Egyptian hotel developer Orascom Hotels and Development in 2005 for its resort project The Cove in Ras al Khaimah.

“The concept of buying a hotel room to let is not new, it’s been around for years in Europe and right now in Dubai there are a handful of companies that have offered it,” Mr Currimjee said. Al Jabal Real Estate is negotiating with a hotel management company to run the hotel.

Earlier this year, Al Jabal Real Estate launched Crescent Towers, which includes three 18-storey towers, also located in Marmooka City. The project will be completed by 2011.

“The reason we are developing properties in Ajman is because it is five times cheaper than it is in Dubai,”

said Mr Currimjee.

The National

Design reaches new heights in The Habtoor Island Resort and Spa project

Announcing the recent launch of the Habtoor Island Resort and Spa, which is being built in one of the most highly sought after locations on the Crescent of Palm Jumeirah, Khalaf Al Habtoor, Chairman of The Al Habtoor Group, stressed his determination to deliver a total lifestyle resort that sets previously unseen standards of creativity and excellence.

In addition to the resort, the project also includes a limited number of freehold apartments, penthouses and villas that are aimed at buyers who demand the very finest lifestyle experience.

“Right from the start of the planning process, we have been totally committed to create something that is really special,”

said Khalaf Al Habtoor.

“As a Group, we have extensive experience in building and managing properties of the very highest standard, and this will be our proudest achievement to date - we began by securing the most desirable location on the Crescent of Palm Jumeirah when what is today one of the world’s most noted man made creations was no more than an ambitious vision, and will now give people the opportunity to have one of the planet’s most exclusive addresses.”

A bespoke team has been put together to take the project from vision to reality - “comprising the world’s most innovative and creative designers, architects, interior and landscape artists, the team has a unique blend of international expertise,” added Khalaf Al Habtoor. “Most importantly from our point of view, everyone involved in this project has been selected because they share our ethos of honesty, enthusiasm, passion and commitment to create something that is truly exceptional, both in the region and anywhere in the world.”

Founded in 1970, and today one of the most respected and successful businesses in the Middle East, the Al Habtoor Group employs over 40,000 people and is uniquely positioned to develop, build and manage the resort. Habtoor Engineering built the Burj Al Arab, Jumeirah Beach Hotel, Madinat Jumeirah and Terminal Three at Dubai International Airport and is also building Trump Tower, along with several other multi-billion projects. The Group also owns and operates five star hotels and is a leader in the hospitality sector.

“Our vision for the Habtoor Island Resort & Spa is highly ambitious,”

said Khalaf Al Habtoor.

“Not only are we determined to deliver a property that will meet the expectations of the world’s most discerning buyers, but one that will be recognised as one of the finest developments of its kind anywhere on the planet - as part of this determination, we are also committed to achieving LEED Gold Rating for environmental friendliness. Our commitment to deliver an unrivalled lifestyle is further evidenced by the fact that 70% of the entire development (one of the highest ratios in Dubai) has been allocated for beautiful gardens and water features.”

Created to give a flavour of the unique nature of the project, a show apartment is now open for viewing. ‘There is massive interest in the project, which we are proud to position as the jewel in the crown of our extensive hospitality portfolio,’ concluded Khalaf Al Habtoor.

AME Info/Press release

DAMAC Properties’ completes enabling works at two flagship Business Bay properties

Leading property developer Damac Properties Dubai has announced that enabling works at two of its developments at Business Bay have been completed.

Work to carry out shoring piles and excavation in readiness for construction of the two properties at Capital Bay and Park Central has now finished and the areas are now ready for main contractors to move on site this month. Damac Properties Dubai has already awarded main contracts worth Dhs390m for both projects to Al Nekhreh Contracting Co. LLC.

Both Capital Bay and Park Central offer commercial space at the heart of Business Bay. At the 17-storey Park Central tower, people will be able to make the most of the working day with a shopping arcade and cafes on site. In addition both outdoor and indoor leisure facilities are on offer including a gym and also an opportunity to enjoy walking around the nearby lake. Similarly at its two tower development at Capital Bay, Damac Properties is offering people a location right at the heart of business in Dubai.

CEO of Damac Properties Dubai Peter Riddoch commented that the positive progress on these two developments was indicative of the company’s determination to push forward at all of its locations in Dubai.

“We have completed our enabling works on time and now look forward to the arrival of the main contractors on site to commence the construction phase of these two striking projects,”

he said.

“Business Bay truly represents the ambition and dynamism of Dubai by creating a hub for modern and forward looking companies to work in. The whole area will have vibrancy about it and we are delighted to have several projects at the heart of this cosmopolitan new business environment.”

In addition to Park Central and Capital Bay, Damac Properties Dubai also has several other projects underway at Business Bay with contractors at its XL Tower development due to undertake the ground floor concrete pour in the next few weeks.

Mr Riddoch added:’ Our entire range of properties at Business Bay will reflect the different styles and design capabilities we have as a company and we look forward to more progress at each of our towers in the coming months.’

2008 has been the ‘Year of Construction’ at Damac Properties, during which its businesses have aggressively focused on construction and contract delivery to trusted and quality contractors. In line with this, the company is making good progress at its major developments and has recently handed over 571 units at Lake Terrace in Jumeirah Lake Towers in Dubai and with the promise of delivery of 192 units at the Executive Heights project at TECOM in Dubai, 198 units in its Tera Del Sol developments in Discovery Gardens in Dubai, 536 units at LakeView in Jumeirah Lake Towers in Dubai and 847 units at The Crescent, located at IMPZ in Dubai, all before the end of 2008.

AME Info/Press release

Finishing touches continue at DAMAC’S ‘The Crescent’

Luxury lifestyle provider, DAMAC Properties, is beginning the finishing touches to The Crescent, its IMPZ development that will offer residents tranquil living in the heart of Dubai.

Combining the convenience of the Emirates Road with a setting of lush and green landscaping, The Crescent is a stylish three tower development offering studio, one and two bedroomed apartments. Thanks to an innovative floor plan all apartments have views of the picturesque landscape and will be able to enjoy this quiet cocoon in the middle of Dubai.

Landscaping of the gardens is expected to be completed by the end of next month with an array of different plants and features being used to create a green haven in the centre of the development. Palms and ornamental trees will give a distinctly tropical feel while ground cover plants and rocks are being used to create interest and colour for residents. Work on the fountains within the complex has already been completed and the residents’ swimming pool is currently being tested.

CEO of Damac Properties Peter Riddoch said:

‘The Crescent will offer residents a wonderful green environment in which to live and careful consideration has gone into the landscaping part of the project. The outdoor environment will reflect the style and luxury of The Crescent apartments themselves and we are delighted to see this project now nearing its completion.’

Inside the building snagging works are underway with representatives from DAMAC’s Customer Relations Team undertaking regular visits to the site. All electrical appliances have been delivered as has the equipment for the shared gym at the development. Lifts are also expected to be completed this month.

Meanwhile DAMAC’s design team has also started the process for the design and decoration of the lobby area which will feature marble and also the choice of soft furnishings and finishings for the reception area.

DAMAC Properties will hand over 848 units at The Crescent in Q4 and Mr Riddoch added that he believed this development would be yet another landmark property in the company’s iconic property portfolio.

‘Today, DAMAC Properties epitomises high-end luxury and high investment returns through its projects in the region. The Crescent is a fine example of combining the most stylish and modern apartments in an eco-sensitive setting.’

DAMAC Holding has now grown into a global conglomerate with more than 8000 employees in 12 countries. Being the first private sector company to make a commitment to Dubai’s real estate market, DAMAC Properties
has become the market leader with a strong sales record to its credit.

DAMAC Properties were recently awarded five CNBC Arabian Property Awards for 2008. The accolades included awards for Best High-Rise Architecture for their Marina Bay Project in Abu Dhabi, Best Development for their Hyde Park project in Cairo, Egypt, Best Marina Development, also for Marina Bay in Abu Dhabi, Best Property Marketing awards for the Dubai Shopping Festival 2008 campaign and Best Developer Website for the third consecutive year - www.damacproperties.com.

Further information is available at www.damacproperties.com