NEWS BRIEF 14 - Asteco Property Management · Dubai hotel, a Reel Cinemas cineplex and open-air...

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IN THE MIDDLE EAST FOR 30 YEARS

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

RESEARCH DEPARTMENT

NEWS BRIEF 14 SUNDAY 03 April 2016





REAL ESTATE NEWS

UAE

PROPERTY STAYS STRONG WHEN OTHER ASSETS STRUGGLE

THE 5 IMPORTANT THINGS IN BUSINESS RIGHT NOW ARE RENTS IN ABU DHABI FALLING FASTER THAN IN DUBAI?

DUBAI

DUBAI’S EFS IN TALKS TO BUY CLEANING FIRM IN INDIA SME PROFILE: SUMMERTOWN INTERIORS MANAGING DIRECTOR AN ECO-

FRIENDLY ENTREPRENEUR SIMON CLEGG APPOINTED DUBAI EXPO 2020 CHIEF OPERATING OFFICER

AL MARYAH CENTRAL SUPER MALL ‘WILL THRIVE WITHOUT A SKI SLOPE’ UNEC SET TO BAG DEAL FOR NEXT 600 APARTMENTS AT DUBAI’S TOWN

SQUARE DUBAI REALTY DEALS SOAR TO DH1.4B IN A DAY

DUBAI PARKS SPELLS OUT SIX FLAGS FUNDING ROUTE DUBAI TRADE PARTNERS WITH NAKHEEL

DUBAI INVESTMENTS LENDS HELPING HAND TO UNION PROPERTIES DAMAC CALLS FOR MEETING TO DISCUSS DIVIDENDS

WHY IT’S NOT EASY BUILDING AFFORDABLE HOUSING IN DUBAI EMAAR MALLS RATING AFFIRMED AS BBB-

INVESTMENT PROJECTS AT DSO WORTH DH3.6BN: AHMED BIN SAEED DUBAI RENTS DECLINE FOR FIRST 2 MONTHS OF 2016 BUT… DUBAI'S FIRST ECONOMICAL HOMES TO BE DELIVERED NEXT YEAR

LESS THAN 1% OF HOMES ARE INSURED AGAINST THEFT IN UAE

ABU DHABI

ABU DHABI PROPERTY MARKET OUTLOOK: NEW SUPPLY TO REMAIN SUPPRESSED

DH65M PALM JUMEIRAH VILLA CAN QUENCH YOUR EVERY DESIRE

ABU DHABI HOUSING SCHEME INCLUDES PLANS FOR UAE’S LARGEST AQUARIUM

BLOOM CENTRAL APARTMENTS AND OFFICES ENTER THE MARKET IN ABU DHABI

MUBADALA’S NET PROFIT UP 12% TO DH1.16B

MASDAR CITY’S GROWING STATUS AS ‘INNOVATION ECOSYSTEM’





DRIVING FUTURE EXPANSION

NEW DH850M PROJECT UNVEILED IN ABU DHABI

NORTHERN EMIRATES

RAS AL KHAIMAH TO HAVE WORLD’S LONGEST ZIP LINE IN NEW TOURISM DRIVE

FIRST OF ALEF GROUP’S ZERO6 MALLS TO OPEN IN SHARJAH

INVESTORS ARE BIG ON COMPLETED TOWERS IN SHARJAH





LESS THAN 1% OF HOMES ARE

INSURED AGAINST THEFT IN UAE

SUNDAY 01 APRIL 2016

An insurance firm's statistics reveal that less than 1 per cent of its customers in the UAE have their

valuables covered with home contents insurance.

This effectively implies that maximum three of 289 families would have had their losses covered.

“Effects of crimes such as theft and burglary can become a lot more magnified because of the financial

losses that are associated with it,” said Frederik Bisbjerg, Executive Vice-President, MENA Retail from of

Qatar Insurance Company’s retail arm QIC Insured.

“We have witnessed this trend in many instances; people believe that since their apartment or villa is

insured, their home contents or valuables would be insured too - which explains why more than 99% of

customers do not have home contents insurance. The matter of the fact is that home contents have to

be insured separately.”

Home contents insurance can be purchased for less than a dirham per day and when purchased, the

family would be covered for loss of or damage to their belongings against theft or burglary.

“I believe the main reason for not taking out insurance apart from what’s required by law is the

understanding of personal insurance, which is deeply rooted in the Middle Eastern culture. Historically,

families have always helped the affected when losses have occurred and this belief and practice is still

prevalent in the culture”, explains Frederik Bisbjerg.

“However, this does not change the fact that burglaries and accidents do happen and it saddens me to

see families in financial distress after the incident.”

For many, it is still an unknown known fact that families with domestic servants are liable for accidents

caused during the course of work and that they would have to reimburse the servants in case of

accidents that cause permanent disability or death. Such eventualities can also be covered by home

contents insurance.

Two useful tips that UAE residents can follow to keep their home and belongings safe and secure when

away:

1. Have friends watch over the house so that it appears inhabited.

2. Keep the doors and windows shut and locked when stepping out to prevent a passerby from

committing a crime.

Source: Emirates 24/7

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DUBAI'S FIRST ECONOMICAL HOMES

TO BE DELIVERED NEXT YEAR

SUNDAY 01 APRIL 2016

Dubai-based Nshama is on schedule to deliver the first homes in its Town Square development in 2017.

"We have commenced work on 1,050 townhouses and 1,100 apartments along with infrastructure work.

We have awarded contracts worth Dh2 billion to date," Fred Durie, Chief Executive Officer, Nshama, told

Emirates 24|7, during the site tour of the project.

Launched in 2015, the project targets middle-income individuals/families with incomes of Dh25,000 to

Dh30,000 a month. Over 2,000 units have been sold to date.

Citing a report by property constants JLL in 2014, Durie said: “There is a shortage of around 114,000

units and we are hoping to fill that shortage. Everything here in Town Square is for middle income... so

we are trying to get people to move from rental mode to owning and if they stay at least 5 to 10 years

then they have an asset that they can sell rather than just spent money on rent.”

# Competition?

Asked if the company was facing tough competition from other affordable housing projects, he asserted

that they were no worried about competition.

“Our price is still the best in the market and we are giving not only a home, but a lifestyle. A lot of

people are doing villas, but we are giving great lifestyle, great amenities for less than Dh1 million for a

townhouse. And so we are not worried.”

# New payment plan

Nshama is looking at launching a new flexible payment plan that could help buyers save on their rent.

“We will announce that in the coming weeks when we do the next launch,” the CEO said.

Three bed and four bed townhouses range between Dh1 and Dh1.35 million, while one to three bedroom

apartments are priced between Dh614,888 and Dh1 million.

# Contracts awarded

According to the developer, the first contracts awarded was for undertaking grading works for the entire

750-acre (31 million square feet) development to Al Naboodah Contracting Co, while the deep services

work is being undertaken by Binladin Contracting Group.

Post the launch of the Zahra and Hayat townhouses, Beaver Gulf Group was awarded the contract with

Emaar District Cooling named as the sole provider of district cooling services for 30 years.

Al Dharis SPF has been awarded the contract for the design, construction and supply of liquefied

petroleum gas for the residential units. The project work includes the supply of cooking gas to over

18,000 apartments and more than 3,000 town houses, over 100 buildings including a hotel complex.





The total daily requirement is expected to be about 30,000 litres of LPG. The design includes the

construction of two underground tanks of 50,000 litre capacity and over 35 kilometres of underground

piping.

# Lifestyle

The project is anchored by a central square (size equivalent to 16 football fields), a Vida Town Square

Dubai hotel, a Reel Cinemas cineplex and open-air cinema. There will be over 600 stores and F&B

outlets, green trails, outdoors sports courts and cycling tracks, among other amenities.

The development is located close to the Arabian Ranches Golf Course, Dubai Polo & Equestrian Club and

Al Maktoum International Airport.


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DUBAI RENTS DECLINE FOR FIRST 2

MONTHS OF 2016 BUT…

SATURDAY 21 MARCH 2016

Dubai rents slipped close to one per cent month-on-month (m-o-m) in February 2016, but rental yields

still remained attractive, reveals data released by Reidin.com.

“Dubai residential price index decreased by 1.65 per cent in February 2016 compared to the previous

month, while level of decrease was 10 per cent compared to same period last year,” company Data &

Research Manager – UAE Ozan Demir told Emirates 24|7.

“On the other hand, residential rent index decreased by 0.93%, reflecting softening continues albeit at a

lower rate,” he added.

In January 2016, rental decline stood at 1.57 per cent with apartment rentals down 1.67 per cent m-o-

m, while villa lease rate fell 0.98% m-o-m.

Despite both sales prices and rentals showing a downward trend, the leasing market performed

relatively stronger and had a positive influence on Dubai rental yields.

“Overall, apartment and villa rental yields have increased around 10 per cent and 7 per cent,

respectively when compared year-on-year. Since investors look for better rental yields, the real estate

market here has remained attractive for investors,” Demir said.

In March 2016, Craig Plumb, Head of Research at JLL Mena told this website that residential rents are

likely to bottom out by as early as fourth quarter 2016.

“It is very hard to talk about but sometime towards the end of this year or early 2017 is when we think

residential market will bottom out,” he said

Average residential rents across the emirate fell by 5 per cent in 2015 but residents have complained of

rent increases.

As on the supply front, JLL expects 26,000 new units to be delivered this year, but believes only 10,000

to 12,000 units would be delivered.

Official rent index

Analysis of the 2016 update of Dubai’s Real Estate Regulatory Agency by this website had revealed that

rates in the official rental index had either softened or remained stable across freehold and leasehold

communities.

Growing Market

Earlier this month, Dubai Land Department Director-General Sultan Butti Bin Mejren told Emirates 24|7

that the emirate had registered transactions worth Dh68.48 billion in the first 53 days of 2016, showing

signs of “thriving” property market.





KPMG, a consulting and audit firm, has said property prices in the emirate will be under pressure this

year due to lower oil prices and strong US dollar, the market will start to recover in 2017 as

infrastructure work surrounding the Dubai Expo 2020 gets under way.

Dubai has named the designers of the Expo 2020 pavilions and will soon be starting work on the Route

2020 – the Dubai Metro extension from Nakheel Harbour and Station to Expo 2020 site.


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INVESTMENT PROJECTS AT DSO

WORTH DH3.6BN: AHMED BIN SAEED

SUNDAY 27 MARCH 2016

Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Silicon Oasis Authority, on Saturday

announced that total investments in Dubai Silicon Oasis amounted to Dh3.6 billion in 2015.

Projects carried out by the DSOA accounted for half of all investments, while foreign investments at the

hi-tech park contributed to the remaining half.

Sheikh Ahmed bin Saeed, who is also Chairman of Dubai Civil Aviation Authority and Chairman of

Emirates Group, commended DSO for its strong performance that registered a 16 per cent growth in

recurring revenue over the previous year.

Sheikh Ahmed, said, "The investment projects that DSOA is currently working on include the Dh1.3bn

smart city project Silicon Park, as well as the Dh56 million student accommodation for the Rochester

Institute of Technology Dubai. Other key projects that are underway include the fifth phase of

implementation of light industrial units costing Dh46m, the Dh23.5m water treatment plant, two

electricity generating plants valued at Dh192m, the Dh30m Lake Park project, the Dh44m roads

improvement project and Techno-hub - an office building dedicated to technology companies valued at

Dh97m.”

DSO also attracted Dh1.8bn in foreign investment in 2015. This included the Dh1bn Fakeeh Academic

Medical Centre, the Dh500m Avenues Mall Silicon Oasis, the Dh200m Axiom Telecom high-tech

headquarters as well as several other projects totalling Dh165m.

He said that DSO’s outstanding record in attracting foreign investment is testament to the exceptional

services and state-of-the-art facilities it offers to hi-tech companies, investors and entrepreneurs. The

increase in the number of companies operating out of DSO - up from 1391 in 2014 to 1920 in 2015

marking a 38 percent surge - is further evidence of the park's success.

He pointed out that the results reflect the growth in the UAE's technology sector, which is a crucial

enabler in the country's diversification efforts as it transitions into a sustainable knowledge-based

economy. DSO is committed to developing this vital sector and emerging as the preferred destination for

technology companies locally and regionally by providing best-in-class services, facilities and

infrastructure.

Dr Mohammed Alzarooni, Vice Chairman and CEO of DSOA, highlighted the success stories achieved in

2015 through attracting technology-focused organizations. Elaborating on the projects underway at

DSO, Dr Al Zarooni said the tech park follows a strategy that aims to support and contribute to the

overall direction of Dubai and the UAE in achieving sustainable development.

He noted that nearly 78 per cent of the companies operating at DSO specialize in Technology, while the

remaining 22 per cent operate across a range of sectors including commerce and services. The current

breakdown of organizations by country represented at DSO is as follows: 32 per cent of the companies

are European, 24 per cent are Asian, 22 percent are from the Middle East and North Africa (Mena)

region, 11 per cent are from North and South America, while just above one percent originate from

Australia and New Zealand.





Silicon Park

DSOA launched Silicon Park, the first integrated smart city project to be built at the integrated park at a

cost of Dh1.3 billion. Spanning an area of 150,000 square metres, the project is scheduled for

completion by Q1 2018 and will integrate best international standards to offer a modern lifestyle for

residents, workers and visitors.

The project will comprise 71,000 square meters of office space, 25,000 square meters of commercial

space, and 46,000 square meters of residential space. It will also feature a hotel, community facilities

like malls, shops, restaurants, and a multi-purpose conference centre.

DSO also signed an agreement with the Rezidor Group, member of the Carlson Rezidor Hotel Group to

introduce the lifestyle select brand Radisson RED to Dubai. The Radisson Red Dubai Silicon Oasis is

expected to open in Q3 2018.

Dr Mohammed Alzarooni said: "We are confident that Silicon Park's smart solutions combined with the

strategic location of Dubai Silicon Oasis, will allow the hotel to offer its customers a unique experience

within an integrated community that allows people to work, live and play. We look forward to working

closely with Rezidor to ensure the hotel brand and experience are comprehensively articulated in the

new property."

Two New Power Substations

To keep pace with the growth of DSO -based companies, residences and future projects, DSOA allocated

Dh192 million to build two new power substations in collaboration with Dewa with a capacity of 400

megawatts. The stations will be built in two phases over 2017 and 2018.

Roads Improvement Project

DSOA launched a roads expansion project in coordination with the Roads and Transport Authority in

Dubai (RTA) with the aim of expanding its existing roads infrastructure at an estimated cost of Dh16m.

DSOA also previously completed an Dh28m project that added 2.7 kilometres of roads to the integrated

hi-tech park.

Lake Park

DSO also launched the Lake Park project on an area of 81,715 square meters, at a cost of Dh30m.

Once complete, the park will include retail outlets, kiosks, and designated play areas for children,

football pitch, and a variety of amenities for the convenience of residents.

Student Residences

DSO commenced construction works for student accommodation for the Rochester Institute of

Technology Dubai. Spanning an area of 10,000 square meters and costing Dh56 million, the project

comprises a four-storey building with 156 residential flats and will be completed in April 2016.

Augmentation of Water Treatment Plant

DSO gives special attention to the environment in line with its CSR strategy that is based on three main

pillars: community, environment and human resources. DSO implemented the region's first water saving

subsurface irrigation system. The initiative, launched in collaboration with Rain Bird, the leading

manufacturer and provider of irrigation products and services, aims to reduce the current irrigation

water consumption levels and related operational costs at DSO by almost 40 per cent.

DSO is also working on increasing the capacity of its water treatment plant from 10,000 cubic meters to

15,000 cubic meters daily. This project will increase the amount of recycled water to meet rising

demands for green area irrigation. It will also ensure better use of water resources and help decrease

the amount of pollutants affecting the environment.





Investors Projects

Fakeeh Academic Medical Centre

In line with Dubai's plan to attract as many as 500,000 medical tourists a year, construction works have

commenced on the Fakeeh Academic Medical Centre (FAMC). The centre is a state-of-the-art smart

hospital and medical university project being developed by Saudi Arabia's premier healthcare provider,

Dr Soliman Fakeeh Hospital (DSFH).

Estimated to cost AED1 billion and set to spread over 150,000 square meters at the integrated free

zone park, the Fakeeh Academic Medical Centre will be constructed in two phases. Phase 1 of the project

is set for completion in 2017 and will include the delivery of a 150-bed state-of-the-art smart hospital.

Phase 2 of the project, which will be completed in 2019, is set to increase the capacity of the hospital by

an additional 150 beds. This second phase will also incorporate an academic component within the

project through the opening of a research-focused medical university. The hospital will also include five

centres of excellence specializing in diabetes and endocrinology, muscles, bones and joints, emergency

medicine, pulmonary medicine and cardiology.

Axiom Telecom

DSO is also set to host Axiom telecom's new Dh200 million hi-tech headquarters. Currently under

construction, the building equipped with the latest technology will offer an innovative campus-style

facility that serves as a base for all major company operations.

Located over an area of 420,000 square feet, the new Axiom telecom facility - designed by the

acclaimed Italian architects Marco Mangili Associati - will recreate the creative ambience of leading tech

companies.

Avenues Mall Silicon Oasis

DSO signed an agreement with a leading retail group to build Avenues Mall Silicon Oasis. The Dh500

million project spanning over one million square feet will be completed in 2018.

New System with 350 Digital Services

DSO completed automating more than 350 services through the application of the Microsoft Dynamics

system. Offering electronic services via a designated customer portal, the new system will service DSO

's 1,920 clients and 55,000 residents. In less than three months, the new website registered 11,000 new

service requests - an indication of its success and the satisfaction of the clients with its services.

77 per cent Customer Satisfaction

DSO achieved positive results in customer satisfaction, registering 77 per cent overall satisfaction rates

in the 2015 customer satisfaction survey. Dr Alzarooni said these results reflect the efforts of all DSO

staff to meet and exceed customer expectations.


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INVESTORS ARE BIG ON COMPLETED

TOWERS IN SHARJAH

WEDNESDAY 30 MARCH 2016

Build a residential high-rise, lease out the units and then sell the property. Sharjah’s developers are

finding there is a lot of investor interest for such deals and a profitable exit for them.

“The deals could range anywhere between Dh30 million to Dh120 million, and if the units are leased,

that’s a major factor in deciding the final price,” said Suzanne Eveleigh, Director — Property

Management at Cluttons. “Completed buildings in locations such as Majaz and Buhaira Corniche are of

particular interest.”

Sharjah has seen a sharp increase in the number of residential high-rises that are complete and with

significant occupancy rates. Another plus from an investor’s perspective is that apartment rentals in

Sharjah were on the rise for the better part of the last two years. And even when rental growth in Dubai

seemed to slow down, nothing of the sort was witnessed in Sharjah, according to market sources. It was

only in the fourth quarter of 2015 that the pace of increase wound down a bit.

“Sharjah has had a consistent and committed level of buyer interest for plots,” said Eveleigh. “Land

continues to sell well and the impression is that the pricing is right.”

Completed or near-completion high-rise buildings, whether in Sharjah or Dubai, remain prized assets for

investors. According to market sources, such deals continue to be made despite the market slowdown,

with GCC investors always looking for a good deal.

Meanwhile, Sharjah’s city-within-a-city is taking shape. With 70 per cent of the infrastructure works

complete, the first plots at the Dh2 billion plus Tilal City master-development should be handed over to

investors by December. Available on freehold, these plots, located in two of the four zones making up

the development, can be used for both residential and commercial low-rise structures.

But, given the fast-track progress achieved on the infrastructure side, there are chances that the

handover process could be brought forward, according to a senior official with Cluttons, the property

services firm handling the sales operation at Tilal City.

“Within Zone C, there are less than 100 plots left out of 663 assigned for villas, while in Zone A, 85 per

cent of plots for mid-rise commercial buildings have been taken up,” said Eveleigh. “It’s up to the

investors to decide on the design and construction schedules of their individual projects.”

Tilal City is one of a handful of mega projects anchoring Sharjah’s credentials as an freehold investment

destination for all. The Majid Al Futtaim Group in a joint venture with the Sharjah Government is

developing the 1 million square metre Al Zahia community, while the Waterfront City is another trying to

rope in investor attention.

For the residential plots at Tilal City, the asking rates are Dh140 a square foot, and those for the

commercial ones are between Dh180-Dh225 a square foot.

“The villas can be built up to 50 per cent of the plot size, which are around 4,000 square feet,” said

Eveleigh. “And buyers can get their title deeds now by registering with the Sharjah Real Estate and Land

Department.”





What the likes of Tilal City and Waterfront City have done is expand Sharjah’s freehold investor base

beyond UAE and GCC nationals. According to market feedback, the buyer demographic for Tilal City is

quite a varied one. And they seem to holding on to their investments given the limited transactional

activity happening on Tilal City plots in the secondary market.

Source: Gulf News

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EMAAR MALLS RATING AFFIRMED AS

BBB-


Rating agency Standard and Poor’s affirmed its BBB- long-term corporate credit rating for Emaar Malls

Group.

The outlook for the Dubai-based real estate company is “stable,” the rating agency said and that it has

aligned its rating for Emaar Malls Group with Emaar Properties.

“The affirmation reflects our view the EMG is a core entity for Emaar Properties [the group] given that it

is an integral to the group’s current identity and future strategy,” Standard and Poor’s said in a

statement.

Source: Gulf News

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NEW DH850M PROJECT UNVEILED IN

ABU DHABI


A new tourist and entertainment destination with residential apartments, retail outlets, cinema hall,

marina club and a community centre will be constructed in Abu Dhabi with an investment of Dh850

million, the developers Al Barakah International Investments announced on Wednesday.

“The tourist market is expanding in Abu Dhabi with what Etihad Airways is doing. This is one of the main

projects that will put Abu Dhabi on the tourism map,” said Moataz Mashal, Managing Director of Al

Barakah International Investments.

The groundbreaking ceremony of the project was held on Wednesday close to Sheikh Zayed Grand

Mosque with officials from Abu Dhabi Municipality attending the event.

The project will come up in an area spanning 150,000 square meters and is scheduled to be completed

in the second quarter of 2018.

The developers said that they leased 2.5 kilometres of land from Abu Dhabi Municipality to construct the

project which is being done on a built operate and transfer basis.

The project named as Al Qana will have three to four floored furnished apartments that will be leased to

customers, Mashal said.

“The number of apartments in not finalised but it will be three to four floors and it will be only for lease

and there will not be any sale. It will be a luxurious kind of project aimed at increasing the

entertainment and tourism potential of Abu Dhabi.”

“If you compare with other Emirates, Abu Dhabi may be little bit on the conservative site but now Abu

Dhabi is starting to push that limit. Al Qana project will have the first and biggest aquarium in Abu Dhabi

with 5000 meters height.”

According to him, the funding will be done through local banks with 70 per cent debt and 30 per cent

equity.

He said the company is more than 20 years old with businessmen Saeed bin Omeir being its chairman.

“We have lot of projects that we can invest in. We will be focusing on this project at the moment. Once

we launch this project we will look into others.”

The marina club will have berthing facilities for 98 mini yachts, he added.

Abu Dhabi has been focusing on attracting tourists in a big way in recent times. According to figures

released by Tourism and Culture Authority, over 4.1 million guests arrived in the emirate in 2015 with

India being the biggest source market followed by the UK, China and the US.

Two of the biggest projects aimed at boosting cultural tourism in the emirate including Guggenheim and

Louvre museum are in different stages of construction on Saadiyat Island.





A new metro line connecting the Midfield Terminal with Saadiyat Island is also being considered by the

authorities.

Source: Gulf News

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MASDAR CITY’S GROWING STATUS AS

‘INNOVATION ECOSYSTEM’ DRIVING

FUTURE EXPANSION

SATURDAY 02 APRIL 2016

Masdar City in Abu Dhabi, one of the world’s most sustainable urban developments, will undergo

significant expansion over the next five years driven by its emergence as a hub for research and

development and the commercialisation of clean technologies.

“Around 35 per cent of the planned built-up area will be completed over the next five years — up from 5

per cent today — and nearly 30 per cent has been committed to, including private homes, schools,

hotels and more office space,” said Anthony Mallows, Executive Director of Masdar City, adding that all

available space within its existing buildings, and those under construction, is fully leased.

“Masdar City’s expansion is gathering pace because today we are recognised as an innovation ecosystem

— a hub for R&D, technology, human capital building, business opportunity and investment.”

Plans for a purpose-built community serving the Middle East’s first dedicated R&D cluster integrated with

a world-class research institute will be unveiled at Cityscape Abu Dhabi, the property exhibition and

conference taking place from April 12-14.

Besides 2,000 residential apartments, the concept involves developing restaurants, cafés, a premium

school and green open spaces within walking distance of a number of Masdar City’s flagship R&D and

pilot facilities, which include ground-breaking projects in solar energy, energy storage, green building

and urban sustainability.

Source: Gulf News

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WHY IT’S NOT EASY BUILDING

AFFORDABLE HOUSING IN DUBAI

TUESDAY 29 MARCH 2016

It’s not only the high cost of land that has Dubai’s developers shy away from going “affordable”.

The lower level of returns can also be a put off for most of them.

These are “typically due to higher recurring costs in the life cycle of this type of development in contrast

to prime residential,” states a report by Core, the UAE associate of real estate consultancy Savills.

“Across the world, to build affordable housing, builders largely resort to cheaper materials and

specifications to reduce their construction costs, leading to lower quality of construction.”

According to Core: “This, in due course, translates to faster depreciation of the building and higher

maintenance costs. Investors and occupiers [by mechanism of higher rents] are generally not favourable

to spend more on maintenance for affordable property than they would on a more expensive asset due

to the very nature of this low-cost investment.

“This results in even faster depreciation of the property — or a very strong negative impact on mid- to

long-term yields when high refurbishments or maintenance cost become unavoidable to keep the unit

competitive to the market.”

Perception issue

Again, this reinforces the image of affordable housing being equated with inferior quality, which will only

deter prospective buyers from making a commitment on one, it said.

And when there is not much demand — because of such concerns — developers are less inclined to build

something in the affordable space.

There is also less clarity on what constitutes affordable or budget homes in Dubai.

Most developers maintain that at prices under Dh800 a square foot (0.09 square metres), it becomes

economically unviable to deliver a project.

Therefore, most developments pitched in the affordable space average Dh900 a square foot, which again

makes it difficult for an end-user to commit to a purchase, according to sources at a developer who did

not wish to be named.

Even if they were interested, potential buyers in the low- to mid-income category will have multiple

hurdles to clear before moving close to actually sealing a purchase.

Financing options to the lower income segment are limited as “banks operate at an income threshold of

Dh15,000-Dh20,000 per month for granting mortgages,” the Core report adds.

“Certain banks do provide mortgages for income levels as low as Dh10,000 per month for select

properties, but only with strict eligibility criteria."

According to David Godchaux, CEO of Core, “We are witnessing a surge of off-plan properties which are

being marketed as ‘affordable’ options. Some of these projects have tried to achieve the intent through





innovative construction, marketing strategies and flexible payment plans, yet many don’t fit the

economics of a lower income end user.

“Buyers would be subject to higher down payment in the case of an off-plan property in addition to their

current rent. With delayed project deliveries, they cannot risk this scenario and hence continue to rent.”

Factors holding back affordable homes in Dubai

* Acquiring land for construction at the right price and the right location is a challenge that developers in

Dubai have largely faced. “Investing energies in affordable housing thus may come across as a non-

lucrative business option for the developers, although this issue could be dealt with through the

combined efforts of the public and private sector,” the Core report notes. “However, public private

partnership may need policy intervention by government and can lead to prolonged delivery timelines

and lack of accountability.”

* Any move to change the floor area ratio within residential developments — to lower the cost of

construction for low-rise affordable housing — could face resistance from developers due to “loss in

profit margins, perceived issues with project branding and difculties to generate interest from the core

target audience.”

* The lower quality of the construction material, the upkeep and maintenance charges coupled with

higher utility costs may be “counterproductive to the intent of affordable housing”.

Source: Gulf News

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DAMAC CALLS FOR MEETING TO

DISCUSS DIVIDENDS


Damac Properties said it has called the annual general meeting on April 19 and will discuss the

recommended 15 per cent cash dividend for the second half of the year.

The shareholders will also discuss and approve financial statements for the year to December 2015, it

said in a statement posted on Dubai’s Financial Market’s website.

The company’s shareholders will also review and approve board’s recommendation on its remuneration,

it added. The firm registered a net profit of Dh4.51 billion for 2015, up 30 per cent over the previous

year.

Source: Gulf News

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ARE RENTS IN ABU DHABI FALLING

FASTER THAN IN DUBAI?


The cost of renting apartments appears to have dropped more in Abu Dhabi than it has in Dubai, at least

according to the data compiled by one property analyst.

Leasing rates at residential buildings in the UAE capital have registered a 4 per cent decline on average

since the beginning of the year until the end of February, according to real estate portal Bayut.com,

which has about 1,000 property listings. In comparison, rents in Dubai went up by an average of 4 per

cent during the same period, though overall rates remain cheaper compared to last year.

Analysts say that the real estate market in Abu Dhabi is merely going through a period of correction,

adding that it is unlikely that there will be further dramatic falls in the short term.

"We believe a correction of the [Abu Dhabi] market is undergoing to shed the excessive inflationary

weight it put on last year," said Haider Ali Khan, CEO of Bayut.com

But whether or not rents in Abu Dhabi are generally falling faster compared to Dubai is something that

many tenants could not quite agree on. Some residents claimed that only the rents in certain locations,

like Mussafah, Khalifa City are cheaper, but most of the properties are still expensive.

"Our rent has even gone up by Dh10,000 when we renewed our lease last December," said one Abu

Dhabi resident who has been living in the same three-bedroom flat for three years now in the capital's

Tourist Club area.

Separate data provided by JLL in its year-end report for 2015, indicate that Abu Dhabi apartment rents

registered a 4 per cent year-on-year increase, while those in Dubai posted a 3 per cent decline. JLL

mainly tracks prime properties.

"Rental rates for two-bedroom apartments increased 4 per cent in the first quarter of the year before

flattening out at Dh163,000," the company said in its report released in January.

But according to Bayut.com's research, studio apartments in Abu Dhabi dropped by 1 per cent from

Dh66,599 in December to Dh66,000 last month. For one-bedroom units, leasing rates registered a 4 per

cent decline, from Dh110,806 to Dh97,000.

Two-bedroom flats now cost around Dh134,000 to rent, down 5 per cent from Dh141,684 in December,

while three-bedroom properties posted a 2 per cent decline, from Dh188,036 to Dh184,000.

On the other hand, rents for four-bedroom flats have fallen sharply, by 8 per cent, from Dh264,173 to

Dh243,000.

“From what we have observed, there will only be slight corrections in the Abu Dhabi market [this year].

Abu Dhabi is a standout financial, industrial and logistics hub of the region and is gaining popularity as a

wonderful tourist destination as well,” Khan said.

“The unit supply pipeline is not as generous as that in neighbouring Dubai and continuous influx of

working population to the emirate as a result of a robust economy means there will remain pressure on

rental values throughout the year.”





In Dubai, studio units went up by 2 per cent, from Dh60,000 in December to Dh61,000 in February.

One-bedroom flats have not registered any changes, while two-bedroom units posted a 2 per cent

increase, from Dh150,000 to Dh153,00 during the same period. Rents for three-bedroom properties

inched up from Dh206,000 to Dh209,000.

Units with four bedrooms are the only ones that registered a decline, with rents dropping by 7 per cent

from Dh338,000 to Dh313,000.

Overall rents in Dubai, however, remained cheaper compared a year ago, posting a 1 per cent decline

between February 2015 and February 2016.

Khan said the rental figures should not be a cause for an alarm. "Rents in prime localities are still being

considered steep by many households," he said. "Prime areas and central localities like Al Reem island,

Al Raha Beach and Al Khalidiya will always have their unique demand, and values there may defy

market norms."

JLL Middle East and North Africa (Mena) said that rents in prime residential properties in the capital are

still about 30 per cent higher than they were three years ago.

“Prime residential rents [alone] increased by more than 30 per cent over the past three years, with the

annual growth rate reducing each year as supply and demand have moved in to balance,” Dudley told

Gulf News.

Dudley said the residential market in Abu Dhabi remains “relatively stable”, particularly for high-quality

residential projects and lower priced housing.

“The decline in oil price has led to a contraction of the oil and gas sector and indirectly a contraction of

the government sector and a significant reduction in government spending, affecting GDP (gross

domestic product) and employment/ population growth in other sectors.”

“However while demand growth has reduced, so has supply - with residential completion rates at their

lowest point for ten years - leading to relatively stable market conditions characterised by low vacancy

rates in high quality stock.”

Source: Gulf News

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DUBAI INVESTMENTS LENDS HELPING

HAND TO UNION PROPERTIES

MONDAY 28 MARCH 2016

Union Properties, which has been hit by declining profits, has got a welcome infusion of cash -

amounting to Dh98 million - with Dubai Investments picking up another 20 per cent in a joint venture.

This will see the latter hold 70 per cent in Property Investments (PI), which built and owns some

signature properties in Dubai.

These include the Green Community and Courtyard by Marriott within Dubai Investments Park. The

additional stake is aimed at “consolidating PI’s operational efficiency and broadening its real estate and

investment portfolio”, a statement issued by Dubai Investments said.

“In spite of challenging macro-economic conditions, we are optimistic of the real estate sector’s long-

term growth potential and Properties Investments’ ability to execute iconic projects,” stated Khalid Bin

Kalban, Managing Director and CEO of Dubai Investments.

“Properties Investment is well positioned for growth in the near future, with new projects in the pipeline

amidst an anticipated pent-up demand for the real estate sector in the wake of Expo 2020 and other

infrastructural developments.”

Construction of Phase 3 of Green Community, comprising 226 units, is under way and expected to be

complete by mid next year. This will add to the 1,555 residential units developed during the first two

phases of the Green Community.

Source: Gulf News

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DUBAI TRADE PARTNERS WITH

NAKHEEL


Dubai Trade has partnered with property developer Nakheel to offer its “Rosoom” online payment

services to the developer’s customers, according to a statement on Sunday.

Nakheel customers will be able to use “Rosoom” to pay service charges for owner associations,

community management and club fees. They will also be able to pay online using international or

domestic major credit cards such as Master Card and Visa.

Dubai Trade has already achieved four million transactions and raised over Dh5 billion through

“Rosoom”, its chief executive Mahmoud Al Bastaki said in the statement.

Source: Gulf News

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DUBAI PARKS SPELLS OUT SIX FLAGS

FUNDING ROUTE


Shareholders in Dubai Parks & Resorts will take a call on Dh1.68 billion rights issue on April 18, which, if

approved, will part-finance the development of a high-profile Six Flags themed destination. The Board of

Directors has put up the proposal under which the company – part of Meraas Holding – will issue an

additional 1.678 million shares at Dh1 each.

On April 18, shareholders will also get to authorise the Board to determine the timing of the proposed

issue. If approved, the Board have a year’s window from the date of the general assembly to decide on

the launch of the rights issue. (This is subject to a go-ahead from the Securities and Commodities

Authority.) It was in December 2014 that Dubai Parks had a hugely successful Dh2.5 billion flotation on

DFM (Dubai Financial Market).

The total funding needs for the Six Flags project is estimated at Dh2.6 billion, with an additional Dh65

million being raised to cover new business development and issue expenses. The total capital of Dh2.67

billion will be funded through a debt component of Dh993 million and the remaining by way of the

proposed rights issue.

According to industry sources, the approval from the shareholders is a foregone conclusion, as it would

see Dubai Parks embark on its second large canvas project after the one (actually three theme parks in

one) it is building in Jebel Ali. This is scheduled for an October opening and projected to generate Dh2-

billion-plus in the first full year of operations.

It will also be interesting how the debt portion (Dh993 million) will be funded. Banks, local and regional,

would have sufficient appetite, as evidenced by the recent Dh1.73 billion one Qatar’s QNB and its

subsidiary CBI (Commercial Bank International) had with the Meydan Group.

Once the rights issue is announced and concluded, the company’s issued share capital will become

Dh7.9 billion.

The Six Flags venture – first announced in April 2014 - will thus build on that track-record. Plus, there

will be synergies from it being developed within Dubai Parks & Resorts and with all the basic

infrastructure in place. (The rights to the branding is held by a Texas based Six Flags and one of the

world’s premier owners and developers of themed destinations.) For Six Flags, the developer has a Q4-

2019 opening in mind. It will be the fourth theme park at the destination and expected to include close

to 27 rides and attractions for all ages.

According to Raed Kajoor Al Nuaimi, CEO, Dubai Parks, “Six Flags is one of the world’s largest

amusement park corporations with 18 properties around the world. This means we will be able to

strengthen the appeal of our destination, attracting thrill-seekers of all ages.

“As the fourth most visited city in the world, Dubai Parks and Resorts and the additional Six Flags

component, is set to benefit from the UAE’s increasingly popularity as a tourist destination as well as its

growing population.”

Dubai Parks shares ended down 6.92 per cent at Dh1.21 on Dubai Financial Market (DFM) on Monday.





Source: Gulf News

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MUBADALA’S NET PROFIT UP 12% TO

DH1.16B

THURSDAY 31 MARCH 2016

Mubadala Development Company reported on Thursday Dh1.16 billion in net profit for 2015, marking a

12 per cent increase from the Dh1 billion reported in 2014.

Revenues were also higher, reaching Dh34.1 billion in 2015 — up 4.2 per cent from the Dh32.7 billion in

2014.

This was primarily due to higher semiconductor, information and communications technology, health

care, and real estate-related revenues, the Abu Dhabi-based investment firm said in a statement.

Total comprehensive income for the year, which measures all forms of income, however, was “a Dh1.32

billion loss”, representing a significant drop from the “Dh190.8 million loss” reported in 2014 a

statement said.

“Mubadala managed through the significant macroeconomic volatility of 2015 to mark moderate

increases in revenue and profit. We remain resolutely focused on prudent cash management and cost

control, as well as active oversight of our assets in order for us to navigate the anticipated challenging

market condition of 2016 and beyond,” Khaldoon Al Mubarak, Mubadala’s group chief executive officer

and managing director, said in a statement.

The company’s total assets stood at Dh246.4 billion at the end of 2015 — up from Dh243.6 billion at the

end of 2014.

Carlos Obaid, Mubadala’s chief financial officer, said the business will continue to “pursue monetisation

opportunities for our mature assets and make targeted investments that advance our four business

platforms.”

While Obaid did not elaborate on such monetisation opportunities, the company had earlier said it was

open to selling its aviation services unit, SR Technics, provided a seller offers the right price.

Looking at each of sectors Mubadala operates in, the ‘Technology and Industry’ segment shows the

biggest net loss, which reached Dh3.73 billion in 2015 — up from Dh3.1 billion in losses recorded in

2014.

The Aerospace and Engineering sector, however, recorded a jump in net profits, which reached Dh1.7

billion in 2015 — up from Dh719.5 million the year before.

Earlier this month, Mubadala said it was looking to establish a new manufacturing facility producing

carbon fibres used for aircraft parts, with construction on the Al Ain facility expected to start in 2017.

The facility is part of the company’s strategy to boost investments in non-oil sectors of the economy to

ensure diversification.

According to Homaid Al Shemmari, chief executive officer of Aerospace and Engineering Services at

Mubadala, the plunge in oil prices has not lead to any change in such investment plans.





“Mubadala is a long-term investor, and you shouldn’t expect any waves. This is the cyclical nature of the

industry, and we’re going to deal with it. Our long term plans are still as solid as ever, and we’re going

to continue delivering on that. We must not allow this downturn in the price of oil to deter us from our

plans,” Al Shemmari told Gulf News.

Meanwhile, the Healthcare segment recorded Dh33.4 million in net profit in 2015, a jump from the

Dh5.7 million in net losses seen in 2014. The Real Estate and Infrastructure sector, however, recorded

lower net profits of Dh994.2 million in 2015 — down from Dh1.7 billion in 2014.

Source: Gulf News

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DUBAI REALTY DEALS SOAR TO DH1.4B

IN A DAY


Registered real estate transactions in Dubai soared to Dh1.472 billion from 170 deals on Thursday, in

another indication that investor momentum is starting to build up again in the sector. This is one of the

largest daily transactions registered with the Dubai Land Department in the recent past.

Monday’s transaction levels were above Dh600 million, while the following two days saw values of

Dh270 million plus each. Thus Thursday’s volumes of Dh1.4 billion are certainly not par for the course.

Details are not available as to the split between freehold and non-freehold related registrations for the

March 24 tally. But in recent weeks all of Dubai’s prime freehold clusters have been seeing an

improvement in sales activity. In those locations where a gain is yet to be seen, the pace of decline in

buying has started to stabilise.

According to Land Department data, the first two months saw transactions (freehold and non-freehold)

valued at Dh68.5 billion.

“Sentiments are slowly turning around by way of snapping up “below market” deals as well as end users

looking to capitalise on current conditions,” said Sameer Lakhani, Managing Director at Global Capital

Partners. “It is the nature of the turnaround that will be debated in the coming months — but what we

are seeing is a clear bottoming out process underway.”

If that is the case, those investors buying now do not foresee a further softening in freehold property

values. More could be joining their ranks the moment they perceive price stability has again come into

Dubai real estate.

According to Gibran Y. Bham, Co-founder of Lookup.ae, “Buyers/investors currently looking to purchase

are seeking value. Almost the entirety of ready, mature communities are end-user driven and therefore

the number of distress/value offerings is extremely limited.

“Sellers listing their properties are finding it difficult to move properties at perceived market prices.

We’re seeing sellers revise prices downwards to attract buyers who are now patient and intent on

obtaining the best possible price points.

“The current correction has brought prices back to just before pre-winning Expo 2020 levels.”

Transactions were also driven by developers getting their sales campaigns into overdrive. Recent

launches by some of the biggest names were backed up quite generous payment plans that included a

major portion of the instalments coming after the handover and spread over two years or more.

According to industry sources, the gains in transactions could have got even better if banks were to shed

their inhibitions over lending mortgage support.

Source: Gulf News

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THE 5 IMPORTANT THINGS IN

BUSINESS RIGHT NOW


Here’s what you need to know in UAE business and globally on this Monday morning.

• The future is digital

Another sign of the times for the world’s media as Qatar’s Al Jazeera Media Network said it had axed

500 jobs in a move aimed at cost-cutting and an increased focus on digital platforms. The Doha-based

network will reduce its staff by about 11 per cent, with most of the job losses coming from its workforce

in Qatar. This follows the printing of the final edition of the UK’s Independent newspaper at the

weekend. The title, launched in 1986, is moving to an online-only format.

• Oil on the rise

Oil rose for the first time in three sessions after the number of active rigs fell in the US, potentially

easing a supply glut Bloomberg reported. Futures advanced as much as 1.1 per cent in New York, paring

a 4.8 per cent loss in the previous two sessions. Rigs targeting oil in the US fell by 15 to 372, according

to Baker Hughes. Brent for May settlement rose as much as 33 cents, or 0.8 per cent, to $40.77 a barrel

on the London-based ICE Futures Europe exchange. For further signs that US oil sector pain is

deepening.

• Dollar winning streak

A gauge of the US dollar rose for a seventh day, the longest winning streak since January, before US

economic data this week that may add to speculation the economy is strong enough to handle higher

interest rates. The greenback strengthened against most of its major counterparts Monday after some

Federal Reserve officials said last week they would consider raising rates at the next meeting in April. US

employers added 208,000 workers in March, after hiring 242,000 the previous month, according to a

Bloomberg survey before the Labour Department releases the figure on April 1. Data to be released on

Monday include personal income and spending and the Fed’s favoured inflation gauge. Bloomberg

• Adia at 40

For anyone that missed last week’s fascinating insight into the inner workings of the Abu Dhabi

Investment Authority, you can find all of the coverage here.

• Most popular Muslim travel destinations

MasterCard and CrescentRating has launched the annual Global Muslim Travel Index 2016, and the UAE

comes in an impressive second place for non-OIC locations.

Source: The National

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BLOOM CENTRAL APARTMENTS AND

OFFICES ENTER THE MARKET IN ABU

DHABI


The Abu Dhabi-based private developer Bloom Properties has started marketing 49 apartments and

7,000 square metres of office space at the first phase of its its Bloom Central development close to the

Al Wahda Mall in Abu Dhabi.

The two and three bedroom apartments and the office space is located in a 25-storey block alongside 64

serviced hotel apartments operated by Marriott.

A second block including a 315-room five star Marriott Hotel will form the second part of the project and

is due to be completed this summer.


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FIRST OF ALEF GROUP’S ZERO6 MALLS

TO OPEN IN SHARJAH


The first project to be undertaken by Sheikh Khalid bin Sultan’s Alef Group – a community shopping

centre branded as Zero6 – is set to open in April next year, according to the company’s managing

director Issa Ataya.

Speaking at a ceremony to mark the signing of the contract at the site with Sharjah-based Omis

Contracting, Mr Ataya said the Dh210 million project would be the first of a series of Zero6 malls

planned for the emirate, as Alef Group aimed to develop “integrated lifestyle community malls for a new

generation” of Sharjah residents.

The first mall to be developed is to be in Juraina 2, which is to the east of the city close to the Sharjah

University City Campus.

Mr Ataya said that studies of the project show that it has a catchment area of 35,800 residents – 95 per

cent of whom are Emiratis with high disposable incomes.

He said the centre would be targeted both at these residents and the 24,000 students based at

University City as its primary audience, but that it also expected to attract visitors from the other

Northern Emirates.

The centre is a two-storey building with a built-up area of 37,000 square metres and a gross leasable

area of 16,000 sq metres. Some 3,000 sq metres of this has been allocated to a new, eight-screen Imax

cinema – the biggest in the UAE – which is being operated under a new joint venture alongside

Cinemacity that has secured Imax rights for Sharjah for the next 10 years.

There is also to be a 1,600 sq metres Spinneys anchor supermarket and 3,000 sq metres of promenade

bars and restaurants at the front of the building. Mr Ataya said that deals were being done with food &

beverage operators who would be new to Sharjah, but were familiar brands in the country as they

already had operations in other malls in Dubai.

A gym, a nursery and a medical facility are also planned, plus parking for 490 cars.

The Zero6 name represents the phone code for Sharjah and Mr Ataya said the contemporary design of

the mall by the German architectural practice Schwitzke & Partner was “a part of our strategy”.

Sheikh Khalifa said the Zero 6 project “is an advanced model of a new generation of malls, where the

elements of modern innovative designs are in harmony with the emirate of Sharjah’s rich architectural

history”.

Mr Ataya said the intention was for future Zero6 sites to be built “in the same spirit” as its first property.

“It depends on the plot size.”

He also said that the Zero6 malls have been built to “complement” Majid Al Futtaim’s existing malls in

Sharjah, adding that they are aimed at a slightly different customer segment.

“We have a promenade with a line of seven shops.





“You don’t find these in MAF properties. I can’t say [we’re aiming] higher, I can say you can’t find it

everywhere.

“We are trying to be selective, and we are trying to get brands that are similar to us.” Alef Group has

employed WSP as technical consultant on the project, while geotechnical works were carried out by Al

Hai and Al Mukkadam.

The master developer of Saadiyat Island, Tourism Development & Investment Company (TDIC),

announced that it would soon open a community centre within the Saadiyat Beach Villas district.

It said the 2,052 sq metres centre contains a Waitrose supermarket that has already opened its doors,

and would also soon house a Starbucks, Circle Cafe, a pharmacy and a nursery.


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RAS AL KHAIMAH TO HAVE WORLD’S

LONGEST ZIP LINE IN NEW TOURISM

DRIVE


A 200-year-old pearl diving village and the longest zip line in the world will be among attractions

marketed by tourism officials to help reposition Ras Al Khaimah as more than just a sun and sand

destination, boosting visitor numbers and the revenue they bring to the northern emirate.

Ras Al Khaimah expects to draw 100,000 new visitors this year, including adventure tourists and history

buffs, according to its Tourism Development Authority (RAK TDA).

It is basing this year’s forecast of 840,000 visitors on demand from the new source markets of India,

China, Poland, Finland and Kazakhstan. It has targeted 1 million visitors by 2018.

A 1,500-person capacity exhibition centre on Al Marjan Island is due to open next month and will help

corporate travel, currently at 5 per cent of overall tourism, grow by 10 per cent.

An adventure park is due to open next month on Jabal Jais including a via ferrata, or a protected

climbing path along the rock face, and a zip line.

“We will bring the longest zip line in the world," said Haitham Mattar, the chief executive of RAK TDA.

“We are also working with airlines in our key source markets such as Russia, Germany and the UK."

RAK TDA opened an office in Russia this month, and in India last month. It plans to open in Riyadh next

month and in China in June.

During the first two months of the year, it received 16,000 tourists from Germany, 5,500 from the UK,

4,800 from India and 4,000 from Russia.

The authority also plans to open a five-star camp on Jabal Al Jais, pending an agreement.

Other attractions would include a viewing deck overlooking the port, and a restored version of the pearl

diving village Al Jazeera Al Hamra.

Affordability compared to Dubai is among Ras Al Khaimah’s key attractions. Last month, the average

nightly hotel room rate was Dh605compared to Dh833.78 in Dubai, according to the research company

STR.

Average occupancy in RAK was around 71 per cent last month, up 17.4 per cent year-on-year. The

average revenue per available room was Dh431, up 6.7 per cent compared to a year earlier.


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ABU DHABI HOUSING SCHEME

INCLUDES PLANS FOR UAE’S LARGEST

AQUARIUM


Plans to build the largest aquarium in the UAE as part of a Dh850 million housing and tourism complex

have been unveiled by Abu Dhabi Property Company Al Barakah International Investments and Abu

Dhabi Municipality.

At a ceremony Wednesday, Al Barakah, which owns the Lifecare hospital in the Musaffah area of the

capital and the refrigeration and cooling District Cole plant, said that it had struck a deal with Abu Dhabi

Municipality to build and operate the 150,000 square metre housing and marina complex for 30 years.

The project, which is to be built under a “musathaha" agreement or Build Operate Transfer agreement,

will include a 5,000 metre aquarium, a 98 berth marina suitable for mini yachts, cafes and restaurants,

and three or four storeys of furnished apartments which will be available for rent.

Al Barakah said that the aquarium would “absolutely" be bigger than the one which currently draws

crowds in The Dubai Mall.

Measuring 51 metres by 20 metres by 11 metres the Dubai Mall aquarium is currently is one of the

largest fish tanks in the world and includes one of the largest viewing panels in the world. It houses

more than 33,000 living animals and represents more than 85 different species.

The new Abu Dhabi project will be located on 2.4 kilometres of waterside land in the Maqta area of the

city opposite the Shangri La hotel and is expected to be completed in the second quarter of 2018.

The company said it would fund the development with 30 per cent equity from its own resources and 70

per cent debt funding with a local bank.

“The tourist market in Abu Dhabi is expanding like crazy, especially with what Etihad Airways are doing

so Abu Dhabi wants to be on the touristic kind of map," said Moataz Mashal, managing director of Al

Barakah. “This is one of the main projects which will start putting Abu Dhabi on that map."

He added that the company would reveal more details about the new aquarium at Cityscape Abu Dhabi

next month.

“We want to be the biggest in Abu Dhabi because there is a competitor trying to exceed us," Mr Mashal

said. “We are aiming to be the biggest in the UAE."


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DH65M PALM JUMEIRAH VILLA CAN

QUENCH YOUR EVERY DESIRE


This seven-bedroom villa on Frond L of Palm Jumeirah leaves one wondering what else could be desired

from a villa in Dubai.

This villa has everything one may need for the life of a Dubai resident seeking extravagance and luxury.

For a start, the villa has been extended so it is already bigger than all the neighbours’ properties. It has

a built-up area 8,600 sq ft and a plot size of nearly double that at 15,683 sq ft.

It has the, now ubiquitous on the Palm, infinity swimming pool which is heated and cooled – it also has

canals which run off the pool that create water features that when illuminated at night add a fiery

answer to the twinkling backdrop of Dubai Marina’s much vaunted neon skyline.

The plot is so large that beyond the pool its outside space also includes a pergola, a decked area, a

patio, a viewing platform and a roof terrace – it doesn’t have a garden – but it does also have a beach.

When one moves inside the property the finishing, decor, opulence and general air of extravagance

makes one wonder whether Donald Trump may have been the previous owner.

The villa is sold fully furnished and outfitted.

It has eight bathrooms, seven of which are ensuite to the double bedrooms. Chandeliers, marble and

silk curtains are de rigueur. It has a private cinema which seats 10. It has a private gym and private

children’s play room. It has a study which has the vista of Dubai’s towering backdrop as a stimulus to

any stubborn emails.

The stand out room in a villa full of rooms trying to outdo each other takes the personality of the Bond

villain: Floor to ceiling glass dominates one wall with Dubai beyond, a glass floor has the pool beneath

with the aqua marine hue dominating this most luxurious and outrageous of rooms – Maybe the

Goldfinger script should have read

James: “Do you expect me to talk?"

Goldfinger: “No Mr Bond, I expect you to buy..."

This villa is Dh65 million.

Q&A with Anne Ogilvie Palm villa Sales Specialist, Luxhabitat

How are sales on the Palm right now?

It is very quiet right now but buyers at this price are still buying as we have seen villas in the Dh69

million – Dh185 million bracket selling recently. One just has to match the client to the villa. This has

been on the market for two months which is not an unusual or excessive amount of time.

The Palm will be the number one place to live in Dubai until Jumeirah Bay, which will house the Bulgari

Hotel, is delivered. That only has 127 plots and will have houses that are only found in Hollywood and

Miami – but that is still some way off so the Palm is the only beachfront freehold property available.





Are Palm properties easier to sell fully furnished?

It’s not normal that people want a fully furnished house to buy however it is easier to sell a house that is

fully furnished because it shows people what the possibilities are and what seating arrangements are

possible. There are people who want a turnkey solution so they only have to move in with a suitcase but

that is the exception rather than the rule.

This has an extended beach front and has 1,500 sq ft larger built up area than any villa on this frond so

it is very desirable. If you don’t like the furniture it can be moved, but the price won’t move as much as

the furniture

How many villas on the Palm have swimming pools that run under the house?

This is a unique feature, you can swim under the sitting room and look up or sit in the room and look

down...it depends if you are James or the villain.


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ABU DHABI PROPERTY MARKET

OUTLOOK: NEW SUPPLY TO REMAIN

SUPPRESSED


While experts in Dubai have been busy trying to predict exactly when a market that has been in decline

for approximately 18 months might show signs of bottoming out, in Abu Dhabi many believe house

prices may now have peaked.

CBRE’s analysis of the market shows that apartment prices in the capital increased by 4 per cent year-

on-year in 2015, and villa values climbed by 8 per cent. And although there were signs of slight rental

decline in the final quarter of the year, rents during the course of 2015 moved up by between 5 and 10

per cent overall.

The reason for this is simple – Abu Dhabi has about half the number of properties that the oversupplied

Dubai market has, and, according to CBRE’s Mena region managing director Nicholas MacLean,

developers have been better at managing supply and demand.

CBRE estimates about 6,000 new units came on to the market in Abu Dhabi in 2015, compared with a

five-year annualised average of about 10,000 units. Mr MacLean says it had initially expected about

9,000 units to be delivered in Abu Dhabi last year but, as in Dubai, developers “are judging the level of

activity in the marketplace and are acting, in some cases, to delay delivery so they can maintain current

pricing levels".

CBRE is currently predicting that about 8,500-9,500 units are “capable of" delivery this year, with a

further 7,500-8,500 next year, but numbers are likely to be lower if developers fear weaker demand.

Neither Mr MacLean or the Asteco property consultant’s Abu Dhabi general manager, Jerry Oates,

expects a wave of new projects to be announced either at Cityscape Abu Dhabi this month – or indeed

during the second quarter of 2016.

Asteco says just 2,713 new units were delivered to buyers in freehold areas of the city last year. In

2012 and 2013, there were 14,500 units and 12,300 units delivered, respectively, yet Mr Oates says

most of these were delayed units that had initially been sold before the 2008 financial crisis. Even

schemes announced this year are not expected to be “new".

“It will be a new launch in 2016, but one that has been launched before," argues Mr Oates.

David Dudley, the head of JLL’s Abu Dhabi office, says investors had enjoyed a “bull-run" over the past

three years, with prices growing by 25 per cent in 2013 and 2014 and residential rates increasing by 30

per cent between 2013-15. However, he says this came to an end late last year.

“The decline in the oil price has been a major contributing factor to the reduction in investor sentiment,

which has negatively affected the sales market and transaction volumes," he says.

Declan McNaughton, the UAE managing director of consultancy Chestertons, adds that Abu Dhabi is

currently witnessing “a sea change with regards to demand".





“In the last few months, we have seen a number of high-profile companies make staff redundant, so

properties that were previously unavailable are now coming on to the market," he says.

“Affordable housing will also be in demand as there is a huge gulf between the top earners and entry-

level workforce, who form the majority. If we could see a truly affordable housing scheme enter the

market, and be sold to the people who would benefit, this would create a more rounded and sustainable

market offering," he argues.

One potential stimulus for demand is a new property law introduced in early March. It is being overseen

by Abu Dhabi’s Department of Municipal Affairs and includes a host of new requirements for sellers of

off-plan schemes, such as setting up escrow accounts to hold money, entering plot sales on to an official

Real Estate Register and a permits system for brokers to ensure they are properly trained.

Mr MacLean says that as the market slows, more disputes are likely between parties.

“I think Rera [Dubai’s Real Estate Regulatory Authority] has done a very good job of [managing

disputes] and I think we will see copies of that model elsewhere within the GCC over the next five years.

I think it’s natural that Abu Dhabi does the same thing."

Mr Oates welcomes the requirement for brokers to undergo proper training. “Frankly, if I throw a stone

out of the window in Abu Dhabi I will hit a real estate person and I don’t think necessarily that all have

been as professional as the market deserves.

“It needs professionalism and people who stand by what they are doing. We’re just going through the

courses now. They’re not cheap, but they are designed to make sure the people we have are

professional, and that has to be welcomed."


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UNEC SET TO BAG DEAL FOR NEXT 600

APARTMENTS AT DUBAI’S TOWN

SQUARE


United Engineering Construction (Unec) is set to be handed a contract to build the next 600 apartments

due to be built at Nshama’s Town Square project in Dubai.

The Nshama chief executive Fred Durie said that an award to Unec was set to be made shortly - just

ahead of the first of a couple of phased sales launches for the apartments.

“The contractor’s just about to start. We don’t want to launch and have no contractor and it could then

take 2-3 years to deliver," he told reporters during a tour of the Town Square project.

Unec is already building the 1,100 apartments currently under construction at Town Square in the Zahra

and Safi communities. The 1,050 town houses underway are being built by Beaver Gulf.

The site grading work was carried out by Al Naboodah Contracting and the deep services work is

currently being carried out by Binladin Contracting Group. District cooling pipes are being installed as

part of continuing infrastructure works for Emaar District Cooling, which will service the entire

community. A 132kV substation is also being built by Larsen & Toubro under a contract for Dewa.

Al Dharis SPF has also been awarded a deal to design, build and supply a liquefied petroleum gas (LPG)

network. It will supply cooking gas to all of the 18,000 apartments, 3,000 town houses, and more than

100 other buildings on site, including community retail and F&B units and the Vida hotel complex. This

will involve the construction of two, 50,000-litre capacity underground tanks, over 35km of underground

piping, and the supply of permanent operations and maintenance staff on site.

Mr Durie said that he also expects a contract for the site’s roads to be tendered during the summer, and

for the first third of the central square area to be brought forward either in the third or fourth quarter of

this year.


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AL MARYAH CENTRAL SUPER MALL

‘WILL THRIVE WITHOUT A SKI SLOPE’


Kevin Ryan, the chief operating officer and managing director of Gulf Related, the company building Abu

Dhabi’s Al Maryah Central shopping centre, is adamant he does not need a ski slope in what will be the

emirates’ newest super-regional mall.

“We spent a lot of time thinking about whether we needed a ski slope and the answer is that we do not,"

Mr Ryan says looking out of his 25th floor office window at the cranes on the site of the vast 2.3 million

square foot mall currently being built in the capital’s new financial district.

Mr Ryan, a veteran developer with 27 years’ experience of putting together shopping centres in the

United States, is overseeing the development.

The mega development, situated next to the luxury Galleria Mall, which forms a key part of the Abu

Dhabi Government fund Mubadala’s vision for Al Maryah island, is currently 40 per cent leased and due

to be completed in March 2018.

The new mall is set to include Abu Dhabi’s first Bloomingdale’s and Macy’s department stores, link up

with the Galleria, which opened in 2013, and provide the capital with five new public parks as well as a

library.

But, unlike Reem Mall, which is currently being developed on nearby Reem Island and which is also

scheduled to open in 2018, Al Maryah Central has no snow park.

“You know what? How many times do people here go to that ski slope in Mall of the Emirates [in

Dubai]?" Mr Ryan asks. “I would say for most people, it’s not that many. It’s very impactful from the

perspective of ‘hey we’ve got a ski slope’ and it is helpful for tourism. But Abu Dhabi is not as reliant on

tourism as Dubai."

Instead of a ski slope, Gulf Related is putting its faith in the new department stores as well as a total of

five public parks – measuring some 10,000 square metres – around the scheme, which it hopes will

draw the crowds on a more regular basis. The first of these – a promenade running along the waterside

outside the mall is already up and partly in operation as a walkway and urban running track.

The project will also include two rooftop parks – one designed as a sports theme park and the other as a

children’s park, both of which are located on the top of the complex’s elevator cores. And there will also

be a formal garden on the roof outside the department stores and a huge pavement space outside the

mall that the developer expects to be uses for things such as outdoor markets and ice-skating rinks.

And, Mr Ryan says, the mall will also include a large public library – another of the requirements of the

Abu Dhabi authorities and one he says will act as a free draw to families.

“You want to go to the ski slope, you pay. You want to go to the family entertainment centre, you pay,"

Mr Ryan says. “One of our big differentiators is that we have a lot of free stuff. We were required to do

some of this but we are taking this far beyond what was required."





The race between Al Maryah Central and Reem Mall to become Abu Dhabi’s second super-regional

shopping mall is indeed hotting up after Abu Dhabi’s Urban Planning Council (UPC) granted the Reem

Mall detailed planning approval in January.

Reem Mall, a planned 2.8 million square feet shopping centre on the south side of Abu Dhabi’s Reem

Island, is vying with nearby Al Maryah Central to become the capital’s second vast shopping emporium

after the 2.5 million sq ft Yas Mall, which opened its doors in November 2014.

Following the UPC’s approval of the concept in July, enabling works started on the US$1 billion Reem

Mall at the end of December.

And the prize could well be a big one, with whichever mall succeeds in opening first getting the chance

to win the loyalty of a swathe of the Abu Dhabi populace who shop for far longer than those of most

world cities and spend on average more money.

Gulf Related predicts that between 20 million and 25 million visitors will flock to its property each year,

something Mr Ryan describes as “very obtainable when you look at regional performance and Abu Dhabi

performance".

To put that into context, according to statistics Centre – Abu Dhabi, the entire population of Abu Dhabi

emirate stood at 2.6 million in 2014 – meaning that in order to reach those figures, every resident of the

emirate would have to visit the mall about 10 times each a year.

Still, when you consider that Yas Mall’s operator Aldar Properties says it attracted 18 million visitors in

2015, the target does not seem quite so ambitious.

“We expect a lot of repeat visitation," Mr Ryan says. “Plus there’s a tourism component and an office

worker component – especially for food and beverage. There’s a whole mathematical analysis. We’re not

making it up. We’ve done formal studies on this as well looking at regional competition, how their

centres are performing, the type of footfall they’re producing and then creating projections based on

that."

So, with basement work on Al Maryah Central now complete and cranes now starting to construct the

massive walls and core of the mega mall, Gulf Related is hoping that the concept has got enough to

bring the shoppers in.

“One of the things about being a mall of the current generation is you have to be entertaining –

particularly in this region where people have a propensity to stay multiple hours," Mr Ryan says.

“First and foremost we’re a shopping destination that’s orientated to the Abu Dhabi community."


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SIMON CLEGG APPOINTED DUBAI EXPO

2020 CHIEF OPERATING OFFICER


Dubai Expo 2020 said yesterday that it has hired as its chief operating officer an executive with a track

record of delivering global sporting events.

Simon Clegg, previously the chief executive of the British Olympic Association and Ipswich Town Football

Club, also held a similar position on the organising committee of last summer’s inaugural European

Games in Baku, Azerbaijan.

Dubai’s Expo is expected to attract 25 million visitors to the UAE – of which 70 per cent will be coming

from overseas – according to Mr Clegg.

The event is expected to cement Dubai’s position as “one of the world’s greatest tourist destinations", he

said in a statement from Expo 2020.

Reem Al Hashimy, Expo 2020 director general and UAE minister of state for international cooperation,

said Mr Clegg’s “management and commercial skills will strengthen our team and help ensure the

successful delivery of our 1,082-acre site".

In Baku, Mr Clegg led a team of 2,500 full-time staff, supported by 12,000 volunteers, organising the

event in “an unprecedented compressed time frame delivering a global television footprint of 832 million

households".

Mr Clegg managed the British team at the Beijing Olympics in 2008, and led the campaign to persuade

the British government and the mayor of London to bid to host the 2012 Games. He was also a board

member for the 2012 Games bid and organising committees.

In January, the footballer Lionel Messi was named as a global ambassador for the Dubai Expo and last

month the designs were chosen for three of the main exhibition pavilions.

They were selected following an international architecture competition run by Emaar Properties on behalf

of the Expo 2020 committee.

It sought ideas for three themed pavilions, titled Opportunity, Mobility and Sustainability, that form a

central part of the Expo’s theme Connecting Minds, Creating the Future.


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PROPERTY STAYS STRONG WHEN

OTHER ASSETS STRUGGLE

FRIDAY 01 APRIL 2016

Amid a backdrop of economic uncertainty, the value of property investment over more traditional

investment asset classes can be the key to securing strong and stable returns.

Volatility across global stock and commodities markets this year have made for a roller coaster start to

the year. Despite oil rallying by more than 50 per cent since hitting 12-year lows less than two months

ago, analysts and economists remain sceptical about what, if any, long term effect the agreement by

some countries to freeze production will ultimately have.

The effect of volatility

If we look at how certain asset classes have performed in the United Kingdom over the past decade, we

see that property has proved more stable than fluctuating commodity and equity markets. Property

prices also dipped less and rebounded more quickly following the 2008-2009 downturn, subsequently

reaching historic highs in 2012. Meanwhile, commodity prices have sunk to levels lower than they were

ten years ago, and the FTSE 100 has only recently returned to pre-financial crisis levels. Investors are

becoming increasingly aware of this divergence in performance. The stability and resilience of property

continues to drive the sector forward as a key investment asset class.

Not all property markets are equal

For investors looking to put their money into real estate, it’s important to look at stable, mature markets

such as the UK or Australia, and to consider five- to ten-year investment cycles that offer the

opportunity for sustainable capital growth and steady yields. Real estate in safe-haven markets is

particularly attractive to those living in more volatile property markets such as the UAE, where prices

will continue to suffer this year, according to KPMG.

Although the economic outlook for the year ahead may be uncertain, past performance has shown

steady growth in property investment activity during economic downturns, which coupled with low

interest rates can mean good prospects for investment returns.

The London factor

Property prices in the UK capital did fall back down to levels from two years previously following the

2008 global financial crisis, but they quickly regained their value, and have continued to grow steadily

ever since.

According to RICS data, UK house prices continue to rise amid current market conditions. Knight Frank

is similarly upbeat, expecting residential price growth in the UK between this year and 2020 to reach

20.5 per cent. Savills expects growth of 17 per cent over the same period, with up to 22.2 per cent

forecast in prime areas of UK regional cities.

But even within safe-haven markets, not all postcodes or price points are equal. Prime Central London

property has become less attractive recently, with investors turning their attention to the better value

and higher yields on offer in outer London, particularly across sites close to future Crossrail stations.





A safe bet

Certain areas and sectors – particularly luxury real estate – are most susceptible. The prospect of even a

modest drying up of investment from Russia and the oil-producing countries of the Middle East will only

compound this trend. As investment resources become constrained, more buyers will begin looking

outside the prime real estate areas of historic Central London in search of secure and steady price

growth.

When comparing asset classes, property’s potential for combining capital growth with high yields that

deliver strong returns over the course of the investment makes it the safest bet of all during periods of

economic volatility.


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SME PROFILE: SUMMERTOWN

INTERIORS MANAGING DIRECTOR AN

ECO-FRIENDLY ENTREPRENEUR


Marcos Bish describes himself as an entrepreneur through and through.

The Dutch managing director of Summertown Interiors in Dubai, which creates eco-friendly office

interiors, Mr Bish is one of those people you frequently meet in Dubai who arrived in the UAE 26 years

ago with little more than a degree in international business and a bucketload of entrepreneurial spirit.

Pondering the unusual path of his career in his Jebel Ali Free Zone (Jafza) office, Mr Bish is circumspect.

“I always wanted to have the freedom to do something for myself," he says. “If I hadn’t ended up in

Dubai then wherever I ended up in the world I hope I would have been doing something

entrepreneurial."

Landing in Abu Dhabi in 1990, Mr Bish spent the first 10 years of his time in the UAE working in the

recruitment business, hiring people mostly from Eastern Europe and the former USSR to come and work

in the Emirates.

At the time, the company for which Mr Bish worked also had a side business selling furniture, something

he was keen to get involved with.

“I had an economics degree and had no experience of the interiors business at all, so it was all learning

on the floor," Mr Bish says. “But I was lucky enough to have a boss who believed in me and let me do

what I was interested in."

From selling furniture on a project basis, Mr Bish soon started to see strong demand for wooden doors

to fit into the scores of new buildings which were being developed as part of the start of the UAE’s

construction boom.

By 1997 he felt confident enough to set up his own company importing wooden doors from Spain, which

he sold to property developers in Dubai and Abu Dhabi. He and a partner invested Dh300,000 into his

new business and never looked back.

“There is a big difference between setting up a business in the UAE these days and doing it back then,"

Mr Bish says. “Back when I was setting up Summertown, government offices were a lot harder to deal

with. Everyone would show up when the office opened at 7.30am and whoever pushes most got served

first. These days things are a lot more streamlined. There is a good system now and a lot of things are

online."

But soon, Mr Bish says, he started to realise that the owners of the high-end shops and hotels he was

working for were looking for more. “After a few years we started to see that our clients wanted to get

things that weren’t just out of a catalogue. They wanted the door that they saw but they wanted a

window in it. I started to see that there was an opportunity for a custom joinery factory over here and

so we set one up."





But bespoke joinery also turned out to be just another part of Summertown’s evolution. With the UAE

property boom going at full throttle, by 2003 Mr Bish and his team were tempted into the even more

lucrative area of taking on full interior fit-out contracts.

“Some of our clients were more satisfied with the work we did than contractors doing a total fit-out. We

were asked ‘could you not do the whole fit-out for us?’" Mr Bish says. “We resisted for a long time

because it would mean going into competition with some of our existing clients. But, eventually we did,

and set up a fit-out design department in 2003."

With the UAE property market booming, Summertown enjoyed its own business boom. The company

expanded so that it was operating from three offices in Abu Dhabi, Dubai and Jebel Ali.

But then in 2008 the business was hit by the global financial downturn and suddenly much of the work

the company had been doing dried up almost overnight.

“When the crisis hit we wanted to be loyal to our employees. We didn’t want to let any of our staff go,"

says Mr Bish. “It was very difficult because almost overnight contracts were cancelled and there was no

money coming in. At one stage we encouraged staff to take unpaid leave and at another point we

reduced working hours by 20 per cent rather than fire people and to keep our heads above water. It was

very stressful."

Stressful as it was, Mr Bish succeeded in avoiding any layoffs during the crisis but came out of the

experience determined to shape Summertown into a more focused sort of firm which concentrated on its

strengths.

“We started to realise that perhaps 25 years ago approximately 20 per cent of a project would be

joinery," Mr Bish says. “These days it is closer to 6 per cent as other materials such as glass, plastic and

steel have replaced the wood. So we decided to sell the joinery factory and concentrate on what we are

really good at – environmentally friendly interior fit-out."

“For some time we had identified that it was part of our DNA to be green," Mr Bish adds. “We built a

new headquarters building which ended up becoming the UAE’s first Leed [Leadership in Energy and

Environmental Design] gold-certified building. We realised we needed to drive the business forward to

get ourselves a long-term goal and to do that we needed to realise what we were already passionate

about and so we made a plan to make the business carbon neutral by 2020."

Today Summertown employs about 150 staff and has an annual turnover of around Dh80 million.

Moreover, of the roughly 30 environmentally friendly fit-outs completed in the UAE over the past

decade, Mr Bish estimates that Summertown has been involved in 10 or 11.

“It was a steep learning curve," Mr Bish says. “When you go for ‘green’ interiors, there are three areas

that are challenging. One is documentation; there’s a lot involved. Second is sourcing materials: you’re

using a lot of products within a certain radius. If you start flying and shipping them it’s not very green.

Third is the fit-out, or construction, itself."

As part of this Summertown’s own corporate office includes a biodegradable floor, the company makes

effective use of windows to mean that it uses just 7 watts per square metre of lighting (rather than the

conventional 25 watts per sq metre), the only paints and glues used in the fit- out did not give off gases

and it attempts to minimise cooling in its air-conditioning system.

And, alongside its strong environmental focus, Summertown has also built up its own Corporate Social

Responsibility programme, which also involves ensuring staff enjoy reasonable salaries as well as

running healthy initiatives and team-building exercises.

But, despite his success in building his business, Mr Bish says that those setting up small business in the

UAE are still finding it tough to get funding from banks and backing from government.





“There is a lot said about how much SMEs contribute to the UAE economy, but I’m not sure that they are

always valued that way," he says. “The reality is that there really isn’t much support for small

businesses in the Middle East.

“We all know the contributions that small businesses make, but it seems that large companies are more

supported by the government and by financial institutions. If anything it seems to be getting harder."


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DUBAI’S EFS IN TALKS TO BUY

CLEANING FIRM IN INDIA


EFS Facilities Services, a Dubai-based facilities-management company, is on the verge of acquiring a

cleaning company in India that will boost it in size ahead of a potential IPO.

The EFS chief executive, Tariq Chauhan, said the company was in the latter stages of negotiating the

deal, which would add 26,000 staff to its existing payroll of 12,000.

Mr Chauhan said that the deal being negotiated would allow EFS to add cleaning to its current “hard

services" of building-engineering management in India, moving it closer towards its goal of providing

complete facilities management in-house. It currently outsources services such as cleaning and security

in the country.

EFS started life as the facilities management arm of Drake & Scull, but was spun out as a separate

entity when Drake & Scull floated on the Dubai Financial Market in 2006.

India is currently its third-biggest market, behind the UAE and Saudi Arabia. It operates in 22 countries,

and no single territory is responsible for more than 20 per cent of its overall annual revenue of US$200

million.

The company had explored the prospect of an IPO last year, but shelved the plan as market conditions

worsened. “We were engaged and we had definite plans, but at this stage, considering the market

scenario, we would be waiting," Mr Chauhan said. “But we have the necessary infrastructure. We have

gone through all of the necessary guidance."

EFS currently has 17 shareholders. Drake & Scull’s chief executive, Khaldoun Tabari, is the biggest

single shareholder, but does not hold a controlling stake, according to Mr Chauhan.

He said EFS can afford to wait and consider other options, as its primary reason for listing is to raise

funds for growth as opposed to shareholder exits.

It would use the proceeds to offer more services, such as security and waste management, to existing

clients and target growth in African markets.


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With 30 years of Middle East experience, Asteco’s Valuation & Advisory Services

Team brings together a group of the Gulf’s leading real estate experts.

Asteco’s network of offices in Abu Dhabi, Al Ain, Dubai, Northern Emirates, Qatar, Jordan and the

Kingdom of Saudi Arabia not only provides a deep understanding of the local markets but also enables us to undertake large instructions where we can quickly apply resources to meet clients requirements.

Our breadth of experience across all the main

property sectors is underpinned by our sales, leasing and investment teams transacting in the market and a wealth of research that supports our decision making.

John Allen BSc MRICS

Director, Valuation & Advisory

+971 4 403 7777

[email protected]

Julia Knibbs MSc

Manager – Research and Consultancy - UAE

+971 4 403 7789

[email protected]

VALUATION & ADVISORY

Our professional advisory services are conducted

by suitably qualified personnel all of whom have

had extensive real estate experience within the

Middle East and internationally.

Our valuations are carried out in accordance with

the Royal Institution of Chartered Surveyors

(RICS) and International Valuation Standards

(IVS) and are undertaken by appropriately

qualified valuers with extensive local experience.

The Professional Services Asteco conducts

throughout the region include:

• Consultancy and Advisory Services

• Market Research

• Valuation Services

SALES

Asteco has established a large regional property

sales division with representatives based in UAE,

Saudi Arabia, Qatar and Jordan.

Our sales teams have extensive experience in the

negotiation and sale of a variety of assets.

LEASING

Asteco has been instrumental in the leasing of

many high-profile developments across the GCC.

ASSET MANAGEMENT

Asteco provides comprehensive asset

management services to all property owners,

whether a single unit (IPM) or a regional mixed

use portfolio. Our focus is on maximising value

for our Clients.

OWNER ASSOCIATION

Asteco has the experience, systems, procedures

and manuals in place to provide streamlined

comprehensive Association Management and

Consultancy Services to residential, commercial

and mixed use communities throughout the GCC

Region.

SALES MANAGEMENT

Our Sales Management services are

comprehensive and encompass everything

required for the successful completion and

handover of units to individual unit owners.

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