Nakheel to seek US investments tomorrow

Nakheel is scheduled to pay a visit to the United States tomorrow to meet with a number of top US developers and investors seeking investment opportunities in Dubai.

Leading Nakheel on this visit to Los Angeles will be Nakheel’s CEO, Chris O’Donnell, and Nakheel’s Director of Sales, Marketing and Customer Service, Manal Shaheen, who will be accompanied by a team of company professionals. The delegation will continue to pursue the company’s strategy of highlighting Nakheel’s expertise and projects to the US market which have already caught the world’s attention with their unique architectural design and innovative concepts. The delegation will also introduce various new investment opportunities in Dubai, including the recently launched Trump International Hotel & Tower on Palm Jumeirah

Speaking of the upcoming trip, Manal Shaheen said:

“This visit is significant in many ways. Firstly, it highlights Dubai’s incredible growth to American investors and encourages them to recognise and understand the significance of the emirate’s current economic vibrancy. This is particularly so within the real estate market, where Dubai has experienced the most impressive growth in the region during the first decade of this century. Secondly, this visit presents us with an excellent opportunity to promote Nakheel projects, allowing investors to examine our ventures up close and become familiar with both our company and our projects.”

Ms Shaheen added: “During our visit we will focus on explaining the strengths of investing in Dubai and how, by implementing solid legislation, providing an attractive investment environment, and offering a superior architectural experience, Nakheel has successfully managed to attract large international investors.”

Nakheel already has a major presence in North America and has signed several important agreements with some of the continents leading brands and corporations. Nakheel has partnered with The Trump Organization to develop the New York businessman’s first project in the Middle East – Trump International Hotel and Tower. It is also developing the first Worlds of Discovery theme parks outside of the US, with SeaWorld, Aquatica, Busch Gardens and Discovery Cove set to provide major attractions on Palm Jebel Ali by 2012.

In addition, Nakheel recently invested 20 per cent in Cirque du Soleil, the world’s leading live entertainment company, together with Dubai World sister company Istithmar World.

Nakheel’s hotel division, Nakheel Hotels, is also following a dual strategy of investing in key gateway cities around the world alongside up-and-coming destinations which offer huge growth potential. Major investments have already been made in North America, including a $375 million investment in the world-renowned Fontainebleau Miami Beach resort which has enhanced an existing portfolio of hotels in key North American locations, including New York, Washington D.C., Los Angeles, and Los Cabos.

UAE lands in world top five

The UAE has jumped 23 places to notch the fourth position among the most-active land markets worldwide in the first half of 2008, as global sales reached $64 billion (Dh235bn) during the period, new data revealed yesterday.

China topped the list with 44 per cent of global land sales, which were valued at $28.2bn, followed by India and the United States with $4.5bn and $3.8bn, respectively.

Development site transactions in the UAE reached $3.7bn, claiming 5.8 per cent share of the global market, and increasing 1,348.6 per cent compared with the same period last year, New York-based research firm Real Capital Analytics (RCA) said in its mid-year review.

The landscape, however, remains mixed with the Americas registering a drop of 39 per cent as values sank, while Europe, Middle East and Africa (Emea) saw a 71 per cent jump in land sales due to expansion in several developing markets including such as the UAE, Russia and Romania. Asia’s moderate 14 per cent growth contained the lion’s share of sales worldwide at $43bn through June 30.

Transactions of significant commercial properties totalled $306bn globally, with nearly 9,000 properties sold in the first half of 2008.
By either measure, sales were half the levels recorded in the first half of 2007.

A 60 per cent fall in transactions of major portfolios and an 85 per cent drop in entity-level transactions exacerbated the decline. In comparison, sales of individual properties were off 33 per cent in these six months.

“The credit crunch and slowing economy halved commercial property sales in the first half of this year compared to the first half of 2007, when neither were yet a factor. Overall, emerging markets have accounted for 25 per cent of all property sales this year, up from just 10 per cent a year ago,” the report said.

Overall, 49 of the 84 countries tracked posted lower property sales this year compared with 2007.

Dubai deals cross Dh144bn

The total value of land transactions in Dubai has crossed Dh144.3bn in the first six months of the year compared with Dh175bn for all of 2007, Land Department figures revealed.

There were a total of 4,389 cash sales worth Dh53.79bn, 2,184 mortgage transactions worth Dh84.19bn, and 201 donations of land and property worth Dh6.29bn.

The sales transactions were registered across 103 districts of Dubai, as 82.03 million square feet of land was sold.

There were 4,323 transactions involving sale of 127.32m square feet of open spaces for Dh129.17bn, while there were 4,474 transactions involving the sale of 30.43m square feet of developed land.

Sheikh Zayed Road was the top area, followed by The Palm Jumeirah, Al Jadaf and Al Warsan.

Emirates Business

Dubai Palm Jumeirah Monorail set for live testing

Nakheel, a Dubai World company and one of the world’s largest and most innovative real estate developers, has announced that live testing of the Palm Monorail, which will transport thousands of visitors on Palm Jumeirah each day, will commence this October.

The Palm Monorail is the first monorail project to be constructed in the Middle East. Nakheel has laid 100% of the 5.45km track, while the monorail vehicles, which are engineered by leading railway system manufacturer Hitachi Ltd, famous for Japan’s high speed Bullet trains, are undergoing final inspection in Japan before arriving in Dubai for joint inspection with RTA and operators SMRTE.

Nakheel signed a technical agreement in December 2006, which will see the Osaka monorail team provide technical advice and training for staff during a six-month testing period. Construction work, which began in March 2006, was completed in July 2008. The system will ultimately connect to the Dubai Metro following the introduction of RTA’s Al Sufouh tramline.

Robert Lee, Nakheel Managing Director, Investment Projects, said: “The Palm Monorail is not only the first system of its kind to be completed in the Middle East but is also setting global standards for the transportation industry. We have employed state-of-the-art technology to overcome a number of challenges whether that is running 1,000m of rail over-sea, meeting Dubai’s unique climatic conditions, or protecting the communities of Palm Jumeirah by utilising a virtually silent track system.

“The double track system has been completed on schedule and we will soon receive the monorail vehicles from Japan when we will begin a meticulous six-month testing period. In preparation for this process, a number of our staff travelled to Osaka to be trained, taking advantage of the close relationship between the governments of the twinned cities of Dubai and Osaka. With the full corporation of our strategic partner RTA, we expect to have the monorail operational and capable of carrying more than 40,000 passengers on Palm Jumeirah each day by April 2009.”

“The RTA is working closely with the Office of British Rail for the Palm Monorail’s inspection, and eventually certification, process. Once the Palm Monorail system is connected with the Dubai Metro, tourists will be able to leave Dubai Airport on the metro and continue through to Palm Jumeirah, where they change over to the monorail system and move onwards to their hotel.”

The Palm Monorail is being developed by a consortium of leading international companies led by the Marubeni Corporation. The system is fully automatic and driverless, although an attendant will be on board at all times. The monorail will initially carry up to 2,400 passengers per hour per direction in four separate trains, each made up of three cars. At full capacity, the figure will rise to a maximum of 6,000 people in nine vehicles.

The 5.45km long transport system will run between the Gateway Station at the trunk of Palm Jumeirah and the Atlantis’ Aquaventure Station on the crescent, calling at two intermediate stations on the way at Trump International Hotel & Tower, and the luxury retail centre Palm Mall.

BI-ME

Dubai in strategic partnership with Cirque du Soleil

Istithmar World, the investment arm of Dubai World, and Nakheel, one of the world’s largest and most innovative real estate developers, today announced that both companies have together acquired a 20% stake in Cirque du Soleil, the world’s leading live entertainment company providing high-quality artistic entertainment.

Under the terms of the agreement, the remainder of the business will continue to be owned by Cirque du Soleil’s Founder, Guy Laliberté, and his team. Quebec-based Cirque du Soleil has annual sales in excess of US$700 million and attracts nearly ten million visitors a year, making it one of the world’s largest entertainment businesses.

Nakheel and Cirque du Soleil announced a 15-year partnership in May 2007 to develop a permanent show on Palm Jumeirah. The two organisations will jointly design and build a 1,800-seat theatre that will be home to the first ever Cirque resident show to be staged outside of the United States and the Far East. Designs for the theatre are underway, as are plans for the custom-produced show. Palm Jumeirah will also host Cirque du Soleil’s world famous touring show ‘Alegria’ in spring 2009 as a prelude to the permanent show which is due to open on the island in summer 2011.

Outlining the strategic significance of the partnership, David Jackson, Chief Executive Officer, Istithmar World Capital, said:

“Cirque du Soleil marks Istithmar World’s first foray into the live entertainment space, which is a key to our media focus. As a longstanding market leader in the live entertainment segment, Cirque du Soleil represents the ideal platform for Istithmar World to fuse its strong investment network into a highly focused and dynamic institution, with tremendous scope for growth across markets.

“Besides being a global tourist hub, Dubai is home to one of the fastest growing entertainment and media markets in the world, presenting a huge opportunity for such world-class cultural and entertainment facilities to add to the emirate’s rich tourism and leisure offerings. This partnership comes in line with Istithmar World’s strategy of realising the true growth and expansion potential of portfolio companies, as it continues to diversify and strengthen its private equity initiatives.”

Guy Laliberté, founder and principal shareholder of Cirque du Soleil, said: “This partnership is a unique opportunity that puts forward the dream I have forged for Cirque du Soleil to continue at another level. We have found the right partners in our long-term growth in the form of Dubai World and this marks a watershed moment in our evolution. With this partnership, I can retain control of my business with the support and input of a partner that is recognized and highly respected throughout the world.

“In the coming weeks we will implement a development structure that will allow us to become a major player in Dubai. In addition to establishing a permanent theatre in Dubai, we will open a show production office, a ticketing company and a technical equipment and set design rental company,” he added. “Having Istithmar and Nakheel as strategic partners will enable us to be even more dynamic and effective in international development – Cirque du Soleil will be in a position to concentrate on our two main priorities: managing growth responsibly and meeting global creative challenges.

“This partnership is the best of both worlds for me and my management team; we can keep control of our creative challenges and operations while accelerating our growth doing projects all over the world. The opportunity to be involved in an entertainment project of this scale in conjunction with the resources of Istithmar World and Nakheel is extremely exciting for all of us at Cirque du Soleil,” Laliberté said.

Chris O’Donnell, Chief Executive Officer, Nakheel, said: “Cirque du Soleil shows have always been major draws in attracting tourists from all over the world to such global leisure destinations as Las Vegas and Macau. The company’s touring show, which was performed here in Dubai last year, was one of the most successful single entertainment projects ever to be staged in the region and we are excited about welcoming a new touring show ‘Alegria’ in Spring next year. We are also confident that an original show and a brand new purpose-built venue on Palm Jumeirah will capture the imagination and provide a further draw for tourists around the world to visit Dubai.”

Eminent for its role in revolutionising the live entertainment industry, Cirque du Soleil is currently producing 18 unique shows around the world for 2008, including new permanently based shows in Macau, Tokyo and Las Vegas, slated to open later this year. The company has been credited with creating an entirely new performance genre by blending traditional circus acts with dance, music, mime and vivid theatricality. Its Quidam show in 2007 was among the most successful single entertainment projects ever to be staged in Dubai, with more than 100,000 people attending the month-long run at Nakheel’s Ibn Battuta Mall.

BI-ME

The Queen Elizabeth 2’s new home in Palm Jumeirah

Nakheel has revealed the new home for the world famous cruise liner, the Queen Elizabeth 2 (QE2), as the anchor of a luxurious marina development on the eastern trunk side of Palm Jumeirah.

Purchased last year by Nakheel’s parent organisation, Dubai World, QE2 will embark on her ultimate journey from Southampton, England to Dubai in November.

Nakheel will commence construction on her eventual home in September; a luxury marina development that will establish a cultural centre and tourist attraction on Palm Jumeirah paying homage to the famous ocean liner.

QE2 will form the pinnacle of a palatial pier that will stretch 300 metres out from the trunk into the waters of the Arabian Gulf.

A grand entrance to the pier will provide the gateway to a luxury residential and hotel quarter, which will feature elegant apartments, a private club, bars and restaurants, retail, wellness centre and gardens.

A high-end yacht club will service a major marina attached to the pier, giving residences on the trunk marina views.

Plans for the QE2 include its transformation into an ultra-luxury floating hotel, featuring public promenades, retail outlets, cafes and restaurants, as well as a heritage museum displaying artifacts from the QE2 and maritime history.

Johann Schumacher, Director of Palm Jumeirah, commented:

“The arrival of QE2 is one of the most anticipated events of the year and Nakheel is proud to be the custodian of such a historic treasure. The world’s most famous ocean liner will form the focal point of an exciting new development that will be a spectacular and must-see attraction on Palm Jumeirah.”

Gulfnews

Trump International Hotel and Tower

Nakheel has signed a contract with an Al Habtoor / Murray & Roberts joint venture for the construction of the Trump International Hotel & Tower on Palm Jumeirah.

The contract valued at AED 2.9 billion has been awarded for the construction of the eagerly awaited 62-storey structure, which is set to become a focal point of the Palm Jumeirah. The 270 metre design, which has a total gross built-up area in excess of 250,000 square metres, will feature two towers that rise above the Palm Monorail and central park, merging as one towards the sky. The development comprises a unit mix of 378 hotel rooms and suites, 385 condominiums, 12 exclusive townhouses, and 45,000 square feet of retail and 60,000 square feet of office space.

Palm Jumeirah

The section about Palm Jumeirah has been updated with more information. You can read more here