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Tasweek’ s 2011 profit up 7pc

Sun, 29 Apr 2012 14:54:28 GMT

UAE-based Tasweek Real Estate Development and Marketing, a leading real estate services provider, reported a 7 per cent profit hike in 2011 over 2010 driven by a 29.8 per cent increase in investment income.

This was partly offset by a decline in deposit income, as banks continued to uphold lower deposits rates in 2011, Tasweek management said at the recent general assembly of the company in Abu Dhabi.

The company also revealed a rise in shareholders’ equity and robust liquidity during the period.

Tasweek was also able to expand its investment portfolio by 32.5 per cent last year via income-bearing assets in the UAE and Malaysia.

Besides it successful investments, the company also approved and launched fresh investment initiatives centering on developments in the UAE and Morocco aimed at broadening its asset base and adding depth to its investment portfolio across various geographical segments.

Overall, Tasweek has logged a cumulative equity growth of 10 per cent for its shareholders besides maintaining strong liquidity. The primary objective of the company’s capital management strategy is to secure a strong credit rating and healthy ratios to support the business and maximize shareholder value.

A highlight for Tasweek in 2011 is the addition of multiple investments opportunities to its $250 million property portfolio that it has been building up since late 2009 to ensure consistent income streams and capital growth, Tasweek said in a statement.

The balanced portfolio will cover investments in development joint ventures, income bearing assets, and mezzanine funding. Investors can avail of flexible options and schemes for various hospitality, residential, commercial, healthcare, and mixed-use developments worldwide, with tenure of 10 years at an internal rate of return of 25 per cent.

“This will definitely be another banner year for us as we unveil some of the world’s best developments under our $250 million portfolio,” said Masood Al Awar, CEO, Tasweek Real Estate Marketing & Development.

“As usual, the convenience and needs of our customers will be at the core of our plans and activities, while our professional and highly motivated team will be the drivers of our growth. We thank our partners, stakeholders and supporters for accompanying us over the past three years and promise them another successful journey ahead. – TradeArabia News Service

Savola to buy $35m Jeddah tower for new HQ

Sun, 29 Apr 2012 14:54:28 GMT

The Savola Group has signed a contract with Adeem National Construction to purchase the East Tower of The Headquarters Business Park in Jeddah for SR134 million ($35.7 million) for its new headquarters.

The Business Park project consists of two towers, East and West. The Savola Group headquarters will be situated in the East Tower facing Prince Faisal bin Fahad Street and consists of sixteen floors, including the ground floor, with a total area of 13,404 sq m, not including some common areas.

The total cost of the purchase is to be paid in three installments. The first installment of 60 per cent represents what has been constructed to date and is payable on signing.

The remaining two installments of 20 per cent each will be paid according to the stages of deliverables as per the contract.

The East Tower will be handed over to the Savola Group by the end of May 2013 and at that point of time the ownership will be transferred to The Savola Group. The purchase will be self-financed.

Dr Abdulraouf M Mannaa, managing director of the Savola Group, said that this project will unify the Group’s corporate headquarters and its operating companies offices, reduce costs of administrative expenses and rent, enhance management of processes and effectively foster team-work.

Any remaining space in the East Tower will be as an investment for the Group, he added. – TradeArabia News Service

Emaar Morocco starts handover of villas

Sun, 29 Apr 2012 14:54:27 GMT

Emaar Morocco, a wholly-owned subsidiary of Emaar Properties, has commenced the hand-over of Hattan Villas in its flagship master-planned community Amelkis Resorts, in Marrakech.

Located in the heart of the Marrakech Palm Grove, Amelkis Resorts is spread over a total area of over 3 million sq m, and features a 36-hole golf course, one of the most challenging in the country, designed by Cabell B. Robinson.

Offering residents the choice of tranquil living within a green golf environment, the Hattan community has only 55 villas designed by renowned architects, several of which are now being handed over, said a statement.

Emaar Morocco is opening a ‘Street of Dreams’ on April 28 at Amelkis Resorts that will highlight the world class lifestyle that awaits potential customers in the Hattan Villas Community. Interested customers can contact the Emaar Sales Centre in Rabat or Marrakech to visit the ‘Street of Dreams’, the company said.

Yves Delmar, CEO of Emaar Morocco, said: “Commencing the handover of the Hattan Villas, an exclusive world-class community, is indeed a milestone for Emaar Morocco, as it underlines our commitment to delivery and to contribute to the development of significant projects in the Kingdom.”

Emaar Morocco draws its design and construction competencies from Emaar Properties, which has several iconic developments in its portfolio including Burj Khalifa, the world’s tallest building in Dubai, and The Dubai Mall, the world’s largest shopping and entertainment destination, the company added. – TradeArabia News Service

London Gateway appoints JLL as sole agents

Sun, 29 Apr 2012 14:54:27 GMT

DP World’s London Gateway has appointed Jones Lang LaSalle as sole property agents for what will be the largest logistics park development in Europe connected to a new 3.5m TEU deep-sea container port.

Jones Lang LaSalle will provide specialist advice in the property sector to support the delivery of the London Gateway logistics park, which is located east of London on the banks of the Thames, a statement from DP World said.

Tim Johnson, director, national industrial & logistics team, Jones Lang LaSalle, said: “London Gateway has the potential to transform logistics operations in the UK by offering a port-centric logistics solution at the heart of the UK’s largest consumer market.

“The logistics park is a unique proposition offering the potential to provide some of the largest and tallest buildings in Europe. There are 15 million consumers located within 80km of the site and this underpins our view that London Gateway is simply the best location for UK supply chain solutions,” he said.

The project has planning consent for a 9.25 million sq ft, rail connected logistics park, adjacent to the new deep-water port, which is on schedule to open in Q4 2013.

The vast majority of deep-sea imports enter the UK through South East ports yet only 10 per cent of warehousing is in the South East.

London Gateway offers significant supply chain savings for global businesses through reduced transport costs created by having warehousing at the port of entry, closer to key UK consumer markets.

London Gateway offers a quicker, more reliable and greener way to transport goods to their destination compared with existing supply chain models, the statement said.

Analysts have estimated 65 million road freight miles every year will be saved, as many goods will no longer need to be transported from deep-sea ports to inland distribution centres.

Instead, goods will flow quickly and easily from London Gateway port to the logistics park before distribution directly to shops and homes, it said.

Andrew Gould, UK chief executive, Jones Lang LaSalle, said: "This appointment comes after a huge amount of work over recent years with the London Gateway team planning this extraordinary project and we are really pleased to have an international team working in partnership with DP World advising on delivery. It is a world class project and will be a game-changer for the UK economy" – TradeArabia News Service

Emaar Q1 net surges 44pc, beats forecast

Sun, 29 Apr 2012 14:54:26 GMT

Dubai's Emaar Properties reported a 44 per cent rise in first-quarter profit on Saturday, beating analysts' forecasts, as the developer shifted away from the battered property market and booked gains in its retail and hospitality operations.

The builder of the world's tallest tower made a profit of Dh606 million ($165 million), compared to Dh421 million during the same period last year, it said in an emailed statement.

Analysts polled by Reuters had forecast an average profit for the quarter of Dh496.75 million.

The revenue was Dh1.8 billion, with malls and retail businesses contributing Dh651 million and hospitality contributing Dh403 million, the company said in its statement.

Revenues from the firm's malls and hospitality segments grew 25 per cent compared to the same period in 2011.

Emaar, which saw sales of apartments plunge 85 per cent last year, is gradually shifting its focus from the bleak Dubai property market towards the more profitable hospitality and retail sectors.

Dubai's largest developer by market value sold 158 residential units during the period, of which 117 were in Dubai and 41 units in the international markets.

New unit sales in Dubai exceeded Dh620 million in the quarter, the company said.

Commenting on the performance, Mohamed Alabbar, the chairman of Emaar Properties, said: "We have entered a new era of growth for Emaar, focused on identifying new growth opportunities in line with the fast-changing economic environment."

"Our strength has always been in envisaging and executing prime real estate assets that contribute significantly to the economies we serve in. In Dubai, our assets are a prime driver of tourism, hospitality and retail, the traditional sectors that boost economic growth."

House prices in Dubai have tumbled about 60 per cent from a 2008 peak and no turnaround is expected this year, with supply continuing to outstrip demand.

Emaar's 2011 earnings report showed it was owed 595 million dirhams by troubled mortgage affiliate Amlak, in which it has a 48 percent stake. Emaar claimed the amount was fully recoverable.

The federal government cut Amlak's debt burden by $1.1 billion, in a renewed effort to revive the lender, whose stock has been halted since 2008.-Reuters

Abu Dhabi developer Sorouh profit up 30pc

Sun, 29 Apr 2012 14:54:26 GMT

Abu Dhabi's Sorouh Real Estate, which is eyeing a state-backed merger with rival Aldar Properties, posted a 30-percent rise in quarterly net profit riding on revnue from government projects and higher rental income.

Sorouh, the second largest property developer by market value in Abu Dhabi, made a first-quarter net profit of 83.6 million dirhams ($22.76 million) compared with 64.3 million dirhams in the same period in 2011, it said in a statement on the Abu Dhabi bourse Sunday.

However, the earnings missed forecasts of four analysts who average expected net profit of 87.83 million dirhams for the quarter, according to a Reuters poll.

Quarterly revenue doubled to 967.2 million dirhams, with revenue from national housing projects generating 62 million dirhams in gross profit for the quarter. The developer said it was on track to reach its target of 500 million dirhams of recurring income by 2014.

Sorouh, which entered into merger talks with Abu Dhabi's largest developer Aldar last month, said the talks are underway, but did not give any further details.

"The evaluation process to look at the legal and business aspects of a potential merger is now underway and the ultimate outcome of this process will take into account the best interests of shareholders," the company said.

Aldar more than doubled its first-quarter net profit on land and residential sales to the government.

Sorouh's Managing Director Abubaker Seddiq Al Khouri said the company would deliver 7,000 units by end 2013.

Abu Dhabi-based property firms have relied heavily on government projects to rescue them from a property market slump witnessed in the emirate.

Property prices in Abu Dhabi are expected to fall another 11 percent from here, a Reuters poll showed in January. Sorouh shares have risen 31 percent year-to-date on the Abu Dhabi bourse. - Reuters

Diyar Homes starts Bahrain villas sale

Sun, 29 Apr 2012 14:54:26 GMT

Diyar Homes villas that follow five different interior themes - El Daneh, El Bahar, El Nakhlah, El Sedrah and Al Looz - will go on sale next week, said the Bahrain-based company.

The developer called upon the prospective buyers to pay a visit to the site to view mock-up villas starting from today.

Diyar Homes is an ideal integrated residential community which includes all the living amenities that ensure a modern Bahraini lifestyle to its residents.

It will feature villas under interior themes, El Daneh, El Bahar, El Nakhlah, El Sedrah and Al Looz.

"Diyar Homes is a highly strategic development that addresses the increasing affordable residential demand in Bahrain," remarked Diyar Homes chairman Abdulhakeem Alkhayyat.

"It is targeted and has emerged as one of the most exciting property offerings in the kingdom for this high-potential market segment as it features a select range of modern facilities and lifestyle options," said Alkhayyat, who is also the managing director and chief executive of KFH-Bahrain.

Diyar Homes is expected to be a significant architectural landmark as it will provide state-of-the-art designs and a range of amenities that will meet clients' expectations and price range.-TradeArabia News Service

Abu Dhabi rents set for further fall says report

Sun, 29 Apr 2012 14:54:25 GMT

The residential rents in Abu Dhabi registered a 7 per cent drop in the first quarter and were set to fall further amid significant jump in supply across all sectors at a time of weak demand and tight economic conditions, said a report.

The real estate sector in the UAE capital is becoming more competitive as a large number of high quality projects are being delivered across all sectors, according to leading property expert Jones Lang LaSalle (JLL)

Significant increases in supply across all sectors during a time of weak demand and tight economic conditions is causing rents to correct from the unsustainable highs of the boom years. Rents are expected to decrease further in line with future additions to supply, said JLL in its Q1 update on the Abu Dhabi property scenario.

Due to a significant increase in supply, rents in the emirate dropped by 7 per cent to Dh126,000 for prime two-bedroom apartments. This registers a year-on-year decline of 10 per cent from Dh140,000 in Q1 of 2011, the report stated.

With this, the rent premium that Abu Dhabi had maintained over Dubai has decreased, which will ultimately reduce the number of commuters from Dubai, the expert said in its report.

According to JLL, the softening in rents has affected some districts more than others with Al Raha Beach and Reem Island experiencing the most significant declines due to the locations diverse ownership.

There is a widening gap between quoting rents for non investment areas and investment areas where foreigners have bought property, it stated.

The residential stock has increased further by 2,800 units over the quarter as additions to supply were provided by Al Muneera and Al Zeina on Raha Beach, four towers on Marina Square, St. Regis on Saadiyat and apartments on Rawdhat,

Rapid take up of residential developments such as the St. Regis apartments on Saadiyat Island demonstrate the latent demand in the market for high quality, well planned residential projects, it added.

According to JLL, a record 23,900 units are scheduled for completion in 2012 but it is expected that many of these projects will experience further delays at the final stage of approval.

According to JLL, the average residential asking prices remained stable in the first quarter at Dh10,900 per sq m. This represents a significant decline of 47 per cent from its peak of Dh21,500 in the fourth quarter of 2008.

The asking prices for apartments were approximately Dh11,900 per sq m, whereas average asking prices for villas were Dh 10,100 per sq m, said the report.

Despite the introduction of rent-to-own schemes the number of sales transactions happening in the market remained limited in Q1 and were predominantly from Emirati purchasers.

Approximately two thirds of the upcoming supply is apartments with the majority of the upcoming villa supply being within Emirati housing communities such as Al Falah and Watani, the report said.

The supply that is due to be delivered during 2012 mainly comprises additional units at master planned developments including Reem Island, Al Reef Villas, Danet, Saadiyat Island and Rawdhat.

Upcoming supply also includes units in Nation Towers on the Corniche, Al Bateen Park development, Marasy in Bateen, and Rihan Heights in the Grand Mosque District.

Although a large proportion of the residential pipeline announced prior to 2008 has since been delayed, the aggregate supply could still reach 236,700 units by the end of 2014.

The completion of new high-end apartment buildings will improve options for higher income residents and increase vacancies in lower grade assets as tenants upgrade.

In the light of increasing competition in the market incentives are being offered to tenants such as the option of paying with multiple cheques, the report said.

Due to the significant development pipeline, rents will continue to experience downward pressure as the residential sector becomes more competitive, providing tenants with better opportunities to upgrade their housing.

On the office sector, JLL said the supply in this sector is scheduled to increase further this year.

As the office sector is entering a period of over supply, vacancy rates have increased to approximately 30 per cent and are expected to increase further as new supply comes on stream.

International Tower at Capital Centre and three major towers on Sowwah Square entered the office market during first quarter thus bringing the total office supply to approximately 2.7 million sq m.

There are limited deals at present and demand continues to be from tenants looking to upgrade from their current space. However, decreasing rents and better quality space has a highly positive impact on increasing demand for office space.

Approximately 182,000 sq m of office gross leasable area (GLA) has been added to the Abu Dhabi Metropolitan area in Q1 thus bringing the total office stock to approximately 2.7 million sq m, said the report.

The major office deliveries include Al Maqam, Al Khatem, and Al Sarab (formerly Towers 2,3,4) on Sowwah Island and International Tower in Capital Centre, it stated.

An additional 432,000 sq m of further office supply could be delivered to the market by the end of this year, however there could be delays at the final stages of approval following recent trends, it said.

Several large-scale office projects are scheduled for delivery in 2012, including Nation Towers on the Corniche, Al Bustan Complex on 29th street, Trust Tower at Central Market, ADIC HQ (Al Bahr Towers), Al Noor office tower at Al Muneera on Raha Beach and Finance HQ and Capital Tower at Capital Centre.

The recent handover of Grade A office space and anticipated future supply in Abu Dhabi is providing tenants with an improving standard and range of options to consider, the report said.

According to JLL, the average rents for Grade A office space remained steady in Q1. Peaking at Dh3,800 per sq m in Q4 2008, average effective rents for Grade A space declined by 55 per cent from the peak in Q4 2008 to around Dh1,700 per sq m per annum.

These average rental rates have been exceeded in a small number of buildings which have capitalised on the oil and gas sector and government tenants, the expert said.

Asking rents for Grade A space are expected to decline further, in line with upcoming supply but should stabilise in the short to medium term. Grade B buildings are expected to experience a sharper decline in rents, it added.

According to JLL, in such a scenario the leasing incentives such as rent free periods and fit out allowances were expected to increase across all building grades over the next six months and net effective rents were expected to decline.

The secondary / lower quality buildings will be hardest hit as more high quality space is introduced to the market and therefore the gap between Grade A and Grade B rents is expected to widen, said the report.

The average Grade B rents which are currently Dh1,400 per sq m will likley fall as new product continues to come on stream in 2012, it added.-TradeArabia News Service

RAK launches investors guide

Sun, 29 Apr 2012 14:54:24 GMT

The Ras Al Khaimah Tourism Development Authority (Ras Al Khaimah TDA) has launched a guide to appeal to and inform potential investors of the benefits of investing in Ras Al Khaimah’s developing hospitality industry.

The Ras Al Khaimah Investors Guide was launched at the two-day Arabian Hotel and Investment Conference (AHIC) that opened today (April 29) at the Madinat Jumeirah, Dubai.

“In order to facilitate all investment opportunities in Ras Al Khaimah, we have created Ras Al Khaimah Investors Guide; an investment guide featuring the analysis of Ras Al Khaimah’s hotels performances, its indicators, number of hotel visitors and its forecast until the year 2020 as well as an analysis of Ras Al Khaimah among its comparable destination based on Ernst & Young’s data,” said Victor Louis, chief operating officer, Ras Al Khaimah TDA.

“Furthermore, we introduce to the investors the available investment opportunities including 35 plots within the Al Marjan Island, where UAE’s first Waldorf Astoria, Rixos Bab Al Bar, DoubleTree by Hilton and Real Madrid Resort will take place as scheduled. The highlight of the guide is a section where we provide the investors with complete 10 years plans feasibility studies of the different hotel capacities in Ras Al Khaimah.”

“Why invest in Ras Al Khaimah?” is one of the main sections in the Ras Al Khaimah Investors Guide featuring the advantages offered by the emirate to its potential investors. Tax–free is one of the Ras Al Khaimah’s highlights, where Ras Al Khaimah’s free trade zone has zero tax on income and capital gains as well as no property transfer or value–added tax.

The rising emirate is considered to be only one of the few areas, where Hotel GOP percentage reaches 50-55 per cent and was able to achieve $25 billion of foreign and domestic direct investment since 2000.

Additionally, Ras Al Khaimah is strategically important with an easy access to main investment and leisure markets; located 45 minutes from Dubai International airport, it offers an Investor-friendly environment with 64km of shoreline ready for development as well as a booming and diversified economy with a 28 per cent growth in GDP in 2000.

Clear strategic goals and targets have been set by Ras Al Khaimah TDA including increasing the total number of annual visitors to 1.2 million by 2013 and increasing the emirate’s total hotel and resort room inventory to 10,000 keys by 2016.

Currently investment is being sought for both the development of new hotels and resorts, as well as hospitality brands through innovative food and beverage outlets.

At AHIC, Ras Al Khaimah TDA is looking to highlight the robust performance of the emirate’s tourism industry and its attractiveness as an investment destination since the establishment of the authority in May 2011.

Hotel occupancy in Ras Al Khaimah remained extremely solid in 2011 for the beach resorts during 2011 were a healthy 70 per cent and 65 per cent in the city hotels indicating an increase of 9.35 per cent in beach resorts and 7 per cent in the city hotels.

The Revenue per Room figures (Rev Par) for 2011 also show an increase on 2010 with Ras Al Khaimah beach resorts enjoying a healthy increase of 24.5 per cent while the city hotels rose by a solid 10.24 per cent.

These figures were translated into Dh400 million ($108 million) hotels revenue stating an increase of 37.61 per cent compared to the year 2010.

Based on the released figures for the Q1 2012, the results are very positive, where the total number of hotel guests for January, February and March 2012 reached 306,750 compared to a total of approximately 208,000 for the same period in 2011, resulting in a 47 per cent increase.

Over the first quarter of 2012 occupancies have risen by a total of 3 per cent at beach hotels and resorts, and 11.5 per cent at city hotels. Additionally Revenue per Available Room (RevPar) also improved by 31.5 per cent for beach hotels and resorts and 50.46 per cent for city hotels.

The total hotels revenue is almost Dh139 million ($37.8 million) showing an increase of 40 per cent compared to first quarter of the year 2011.

“We have created an environment that provides encouraging returns on investment and through our continuing promotion and development of Ras Al Khaimah as a tourism destination we will continue to ensure that this environment continues and is strengthened for the benefit of investors and the emirate of Ras Al Khaimah alike,” Louis added. – TradeArabia News Service

Gatehouse seals $55m UK property deal

Thu, 26 Apr 2012 06:21:05 GMT

Gatehouse Bank, a London-based Sharia-compliant investment bank, has announced the successful delivery of its realised investment in UK real estate through the sale of two properties in a deal worth £34.4 million ($55.5 million).

The deal involving an UK student accommodation portfolio represents an excellent return for Gatehouse's investors, who have benefited from an internal rate of return of 18.6 per cent during the two-year holding period, and a return on investment of 37.2 per cent on exit, said a senior official.

'Over the past two years we have invested in the student accommodation sector on behalf of our investors, confident of the excellent return potential, which we believe we have successfully delivered in the realisation of the UK student accommodation portfolio investment,' remarked chairman Fahed Boodai.

'Gatehouse Bank was quick to seize the market opportunity to enable an impressive return on investment,' he observed.

'We promised that we would deliver a solid return to our investors, and we have achieved that result yielding a 9.1 per cent return in the first year, and an increase to 9.7 per cent in the second year,' said Boodai.

'When the time was right, we managed to deliver a successful exit result within two years, one year ahead of schedule as we have achieved our targeted returns,' he noted.

Importantly, we delivered the asset sale with a view to reward our investors with a profitable return on investment as a priority, rather than retain asset management fees for the additional holding period, he pointed out.

According to Boodai, Gatehouse has clearly demonstrated to its investor clients its ability to develop a commendable track record of transactional experience.

'This is due to our unrivalled expertise in the market, which includes a strong UK and US real estate team of originators, analysts, asset managers and a credit and market risk team who provide end-to-end commercial real estate solutions to investors,' he added.-TradeArabia News Service

64pc Egyptians say right time to buy home

Thu, 26 Apr 2012 06:21:04 GMT

Sixty-four per cent of Egyptians believe now is the right time to buy a house, benefiting from the significant drop in prices, said a report.

Up to 90 per cent are willing to pay more for a housing project that offers community facilities, according to a survey conducted by Vantage Communications, one of Egypt’s leading PR consultancies.

Most respondents are reluctant to buy, said that one year from now, or more, will be a better time, the survey said.

The majority of respondents were employed males, ages 25-30, equally divided between single and married, 43 per cent had an income between EGP500-2000 ($82.6-$330.7) whilst the rest had an income exceeding EGP 2000.

Cited by 31 per cent of participants, location topped consumers’ priorities when buying a new home. Price came in second, mentioned by 23 per cent of respondents.

When asked about reasonable prices for buying a home, 43 per cent of respondents considered EGP100,000 – 120,000 a reasonable range, and 29 per cent cited EGP 70,000 – 100,000.

A reasonable monthly installment as set by 44 per cent of participants is EGP400 - 600, 37 per cent mentioned that they are willing to pay EGP600 and above.

When it came to government versus private developers, consumers were equally divided. The preference for government projects was backed by the public’s perception of the government’s credibility and trustworthiness.

On the other hand, consumers’ preference for private sector developers is driven by their perception of its diversified and unique style, as well as better quality services.

Given the choice between two projects of equal price, location and size, 52 per cent of respondents said that access to transportation would be the determining factor. – TradeArabia News Service

Abu Dhabi residential sales, rents drop

Thu, 26 Apr 2012 06:21:03 GMT

Residential sales in Abu Dhabi have witnessed a steep fall across the board, and the rents have continued to drop in the first quarter, however, the prime apartments in the UAE capital were in good demand, said a new report.

This year will prove challenging for the Abu Dhabi residential market as more stock comes onto the market, including the Al Rayanna project which will release 1,800 apartments this year and the Al Reef Downtown which will release 1,500 apartments, said property expert Cluttons in its report.

Several high quality key commercial projects came online in the last half of 2011 including Etihad Tower, Sowwah Square, Capital Gate and Aldar HQ, raising the bar for commercial space in the city, the report said.

Apartment rental values have dropped between 6 and 10 per cent on some projects and will continue to soften throughout 2012.

However, demand for residential property still remains strong and the recent announcements by the government to resume landmark projects, and major companies posting significant profits has had a positive effect on expectation in general and should continue to reenergise the economy throughout the year, it stated.

Abu Dhabi Island has been attracting strong interest as it became more affordable. Apartments on the St Regis development on Saadiyat Island are also proving popular.

The short supply of retail facilities at many of the new residential developments is slowly being addressed at some developments such as Marina Square, but is still an issue for many projects, said Clutton which has enjoyed a dedicated Middle Eastern presence since 1976.

In its Q1 report for Abu Dhabi’s commercial market, Clutton said Abu Dhabi Executive Council had announced the resumption of many previously stalled projects including the long-awaited Louvre and Guggenheim museums on Saadiyat Island, and the new terminal for Abu Dhabi International Airport.

This promises a positive outlook for 2012 as major developers like Aldar and Sorouh post improved profits for 2011. Sorouh ended the year with Dh383 million in profit, up from Dh16.1 million in 2010. Aldar also posted significant profits of Dh642.5 million.

The UAE capital has also seen a shift in the way residential landlords do business, as proactive landlords have started approaching brokers to let their residential properties, the property expert said in its report.

Developers are also retaining brokers and paying agents commissions as an incentive to lease their properties, it added.

Commenting on the office sector scenario, Clutton said this section received a boost from the municipality’s recent announcement that it would no longer issue permits for residential villas to be used for commercial purposes.

This forced many companies to move to purpose built commercial space, with Prime Grade A office space proving the most popular, in particular Sowwah Square which has been successful at attracting both new tenants and those relocating.

Very few landlords are seeking to achieve rents above Dh2,000 per sq m per annum in 2012. New build quality stock is coming to the market at Dh1,400- 1,600 per sq m per annum.

A further fall in commercial rents across most submarkets throughout 2012 is likely, with the exception of Prime Grade A space, bringing rents down to more realistic levels. Greater flexibility and incentives will be important and rents should stabilise by the end of 2012, the report added.-TradeArabia News Service

Burj Khalifa corporate floor up for grabs

Wed, 25 Apr 2012 06:39:04 GMT

US-based Freedom Realty Exchange, a leading online real estate auction platform, has put up an entire corporate floor on the world's tallest tower BurjKhalifa in the first ever online real estate auction in Dubai.

Freedom, which is owned and managed by LFC Group of Companies based in California, said BurjKhalifa revels in many accolades; the newest one being home to the first ever online real estate auction in Dubai.

The massive silhouette piercing the Dubai skyline is immediately recognized, widely admired and highly sought after as a prestigious address for global business leaders.

As the first-of-its-kind auction to occur in Dubai, the online event is expected to attract global attention not because it is as progressive and innovative as the city with a reputation of pushing the envelope, but because of its premier location and low opening bid which starts at Dh1.99 million ($541,769).

Commenting on the auction, Bill Lange, the LFC Group of Companies president and CEO, said, 'As far as notable real estate auctions, this one tops them all.'

Recent reports indicate that the real estate market in Dubai is improving, mostly on the residential side, as the commercial and office market remain sluggish with sellers looking to sell quickly yet mitigate any loss in price.

Auctions have proved to be effective where supply is high and demand is low; case in point with many of the corporate suites in the BurjKhalifa.

The international appeal of the BurjKhalifa lends itself perfectly to an online auction as the barrier to entry for interested buyers is removed when the ability to bid is available directly from their own computer, laptop or tablet, regardless of where they are located in the world, remarked Lange.

'Regardless of the notoriety of the BurjKhalifa, the auction will attract serious buyers who understand that this is an once-in-a-lifetime opportunity to purchase an entire corporate floor in the BurjKhalifa at a price they determine through online bidding,' he added.

The company said all bids must be submitted by June 28.

The current owner of an entire corporate floor above the 110th storey has taken the bold and historic step to sell the property through an online auction on the Freedom Realty Exchange, it stated.

In his comments, the anonymous property owner said, “Dubai is a global community and what better way to reach the global buying market than with an online auction where anyone interested in purchasing the property can do so no matter where they are in the world.”

“I’m also very excited that the auction presents a date certain for sale by compelling buyers to get involved now or risk someone else taking advantage of the auction sale,” he added.-TradeArabia News Service

Emaar to pay 10pc dividend, plans new projects

Wed, 25 Apr 2012 06:39:03 GMT

Emaar Properties, builder of the world's tallest tower Burj Khalifa, will pay a 10 per cent cash dividend for 2011 and said it would strengthen its market leadership in Dubai by launching new projects this year.

Shareholders, at its annula general meeting today, also approved a new board with seven new members.

Emaar chairman Mohamed Alabbar said Emaar, which is about 30-percent owned by Dubai's sovereign investment vehicle, would focus on boosting revenues from its global operations next year and enhancing profit from recurring revenues.

The developer has been gradually shifting its focus away from Dubai realty, hard hit in the emirate's 2008 property collapse, in favour of its retail, hospitality and leisure business. It owns the Dubai Mall, billed as the world's largest, and operates the Armani-branded hotels.

The United Arab Emirates' biggest developer by market value had net profit of Dh1.8 billion in 2011, down 27 percent from the previous year.

Addressing the shareholders, Alabbar, said: “The positive economic impact of our trophy assets, such as Burj Khalifa, The Dubai Mall and The Address hotels within Downtown Dubai makes us a catalyst for the economic growth of the city. Having underlined our credentials in superior developments and ensuring best-in-class customer service, we will strengthen our market leadership in Dubai by launching new projects in the city this year.”

With total assets of more than Dh60 billion ($16.35 billion), investment properties and fixed assets of Dh16.4 billion ($4.47 billion) and development property valued at Dh26.2 billion ($7.14 billion), Emaar highlighted its robust fundamentals in 2011. Last year, Emaar recorded a net operating profit of Dh2.058 billion ($560 million) and annual revenues of Dh8.112 billion ($2.209 billion).

The shopping malls, retail and hospitality businesses of Emaar contributed Dh3.36 billion to annual revenues, representing 41 per cent of the company’s annual revenue for 2011. In addition, the contribution of international operations to 2011 annual revenue almost doubled to Dh1.81 billion ($493 million), compared with Dh973 million in 2010.

The Dubai Mall, the flagship development of Emaar, hosted record visitor arrivals of 54 million in 2011, and is billed as the world’s most visited shopping and leisure destination.

Emaar is focused on strengthening its competencies in developing prime real estate assets in the Middle East and North Africa region and the Indian Subcontinent as well as its successful shopping malls and retail and hospitality and leisure businesses, and expanding to key markets globally, he said.

Members of the new board of directors are: Mohamed Alabbar; Hussain Ahmad Dhaen Alqemzi; Ahmed Jamal Jawa; Ahmad Thani Rashed Al Matrooshi; Abdulla Mohammed Saeed Al Ghobash; Jamal Majed Bin Thaniyeh; Arif Obaid Saeed Aldehail; Abdul Rahman Hareb Rashed Al Hareb; Fadhel Abdulbaqi Abulhasan Alali; Marwan Abedin; and Abdulla Saeed Balyoahah. - Reuters and TradeArabia News Service

Naseej 2011 income soars to $11m

Wed, 25 Apr 2012 06:39:03 GMT

Naseej, a leading real estate firm committed to affordable housing in Bahrain, said its total income for 2011 rose to BD4.1 million ($10.9 million) from BD3.5 million the previous year.

Announcing the results, chairman Khalid Janahi said, "Naseej remains strongly capitalised, highly liquid and unleveraged. The company's total expenses increased to BD2.4 million from BD1.2 million the previous year."

At the end of 2011, total assets had grown to reach BD113.1 million while total equity stood at BD112.6 million, he stated.

During the annual meeting, shareholders approved the election of a new board for the next three years. Janahi was reappointed as the chairman, while Abdulkarim Bucheery was renamed vice-chairman.

Janahi later briefed the shareholders on the company's two initial property development projects.

First and most significant, was the appointment of Naseej by the government as a partner for the first social and affordable housing public-private-partnership in the Gulf.

This groundbreaking project will develop 4,100 social and affordable housing units over the next three years, said the chairman.

Janahi congratulated the government for achieving this major milestone, through its commitment to provide Bahraini citizens with affordable homes, in partnership with the private sector.

He also praised the government's efforts to develop the kingdom's economy.

The Naseej management adopted a strict policy to strengthen the company's liquidity and minimise operating expenses, chief executive Christopher Sims said.

"These measures proved to be successful, with net profit for 2011 ending higher than originally forecast," he said.

"We are seeking regional investment opportunities in other GCC countries and in Morocco for the development of affordable housing projects that will provide a positive return for Naseej," he added.-TradeArabia News Service

BaPDA takes part in gulfBID

Wed, 25 Apr 2012 06:39:02 GMT

Bahrain Property Developers Association (BaPDA) has announced its participation in gulfBID 2012, a leading expo which showcases market leaders from the specialist construction, contracting and related sectors.

BaPDA has consistently demonstrated a keen commitment to effectively support and guide the property development industry, and uphold efforts to rejuvenate it through ethical practices and services.

In its role as a leading non-profit organisation, BaPDA has conducted and participated in conferences and seminars that have facilitated the exchange of information, increasing efficiency through shared experiences and expertise between members of the real estate industry in the region.

It has initiated plans to identify key areas of growth and improve standards to positively influence the industry and the national economy.

'We are committed to working in proactive partnerships with policy-makers, financiers, service providers and industry experts to provide efficient and progressive solutions to help resolve pressing challenges and ensure that the property development sector develops rapidly but in an organised, efficient, and ethical manner,' said BaPDA chairman Aaref Hejres.

'The shortage of affordable housing in the country is one such challenge that we have taken the onus to represent.

'We are happy to be a part of gulfBID at this time when so many large projects are on the anvil and soon to be launched. It provides an ideal platform for our members to benefit from, and for BaPDA to throw the spotlight on our vision for Bahrain,' he added.-TradeArabia News Service

Transparency 'key to boost real estate investment'

Wed, 25 Apr 2012 06:39:01 GMT

Real estate firms in the GCC looking to attract investment must increase transparency and public disclosure, said an industry expert.

'Real estate companies with highly regulated and transparent corporate governance policies can take a leading edge over competitors on the capital markets, attracting a premium on shares of up to 40 per cent from investors,' remarked Dr Abdullah Alabdulgader, the founding executive director of the GCC Board Director’s Institute.

Alabdulgader was a headline speaker at the Middle East Real Estate Summit held recently alongside Cityscape Abu Dhabi at Abu Dhabi National Exhibition Centre.

A feature of Cityscape Abu Dhabi, the summit brought together the biggest names involved in regional real estate investment, development and financing.

“The financial crisis that hit the markets a few years ago has made clear the growing significance of good corporate governance in capital markets as it plays a key role in achieving strong and sustainable growth,” he stated.

“Good corporate governance has to be perceived as a big opportunity for the real estate sector to improve its public image and to become better managed. It can be a source of competitive advantage, and therefore play an important role with investors, lenders, and developers,” the expert noted.

As per Dubai Land Department data, GCC residents had invested $3.26 billion in the emirate’s real estate sector last year, while transactions increased by 20 per cent from 2010, to the tune of $38.9 billion.

Alabdulgader pointed out that investor confidence in the region had improved, but also highlighted the importance of the government regulatory framework.

“Investors in the real estate sector are looking for transparency, that goes beyond financial reporting and includes executive compensation, board member’s qualification. Numbers also show that investors are willing to pay a premium on shares of up to 40 per cent for companies with highly regulated corporate governance strategies,” he explained.

Alabdulgader said increased investor confidence was not only reflective of a company’s good corporate governance practices, but also the factors of the regulations’ framework, which is a prerequisite for the development of sustainable capital markets.

“There has been a great improvement in corporate governance in the GCC region in the last few years. I believe that corporate governance in the region is now in its second stage of development. Following the CG codes initial adoption in 2005 we are witnessing greater acceptance of these codes even among non-regulated companies,” he stated.

A panel of more than 35 industry leading speakers currently active in the Middle East shared their collective experience and discussed ways to tackle the major challenges facing the regional real estate sector.-TradeArabia News Service

Wafra launches $54m project at Cityscape

Wed, 25 Apr 2012 06:39:00 GMT

Kuwait-based Wafra Real Estate has launched a $54 million commercial and residential project inspired by artefacts and elements of the Islamic world at the ongoing Cityscape Abu Dhabi, a major real estate event.

Cityscape Abu Dhabi is concluding tomorrow (April 25) at the Abu Dhabi National Exhibition Centre.

Located on the plush Reem Island, the Wafra project will have courtyards, mashrabiyas and elevated gardens as its key design aspects, to depict the intricacies of Islamic architecture and showcase the underlying Islamic values of privacy and spirit.

“The project is divided into two plots and is spread over a site area of 7,147 sq m with a maximum of seven floors above ground level allocated for office use and 4,150 sq m with 35 floors allocated for residential use,” said Ahmed Al-Subih, Marketing Head, Wafra Real Estate Company.

“The fundamental organising element to most urban planned buildings and projects in the Islamic world was the courtyard; while the importance of a courtyard is to create an open space in the centre, we have attempted to create it as an object surrounded by the building programme.”

Keeping the Islamic ethos in mind, elaborately patterned mashrabiyas will adorn the exterior facade of the buildings, while beautiful elevated gardens will be introduced throughout the buildings to create an important connection between building, man and nature and to provide a cleaner and healthier roof level condition.

“The project is progressing at a rapid pace, with the licensing for the commercial complex complete and the residential license in its final stages, we hope to begin construction by the end of 2012,” added Al-Subih.

Meanwhile Reem Investments, another major Abu Dhabi based developer at this year’s Cityscape Abu Dhabi is launching a new self storage facility in the heart of their emerging Rawdhat community development on Airport Road.

The state of the art purpose-built self storage facility, known as ‘redbox’ will provide short and long term, climate-controlled secure storage options accessible to customers 24 hours a day. Available spaces range from 25 sq ft to 300 sq ft and customers will only pay for the space they need.

“Reem Investments is always looking at enhancing the lifestyle in our developments. We have identified self storage, a common feature of most developed capital cities, as another special offering to people who live in and around our Rawdhat development,” said Bambang Sugeng Bin Kajairi, chief executive officer at Reem Investments.

“This is the only high quality self storage of its kind on Abu Dhabi island and we are receiving enquiries now from commercial entities and individuals in the capital with a plan to open the facility in the last quarter of 2012.”

Fellow exhibitor Manazel Real Estate also unveiled its latest project at Cityscape Abu Dhabi – a 500-villa complex exclusive to UAE Nationals. Aptly named Dari, or “my home” in the local dialect, the project will help Nationals take advantage of Emirati housing loans and assist local landowners in constructing and maintaining housing structures on their plots.

Manazel’s chairman Mohamed Mahana Al Qubaisi said: “We are proud to launch Dari at Cityscape Abu Dhabi 2012. The inauguration of the project at the exhibition is in step with our dedication to the progress of this great nation and its people. Manazel plans to complete 200 villas in 2012, with another 300 following suit in 2013.”

Cityscape Abu Dhabi returned this year with regular event feature, the Cityscape Awards for Real Estate – Mena, which took place last night, and celebrated the latest cutting-edge projects shaping modern city skylines across the Middle East and Africa.

Among the notable winners last night were Abu Dhabi Health Services Company (Seha) and Skidmore, Owings and Merill which won the Best Sustainable Development Award for the Sheikh Khalifa Medical City, and Aldar Properties which took home the Mixed Use Project Award (future) for its World Trade Center Abu Dhabi development.

Other winners included Sorouh Real Estate for its Sun & Sky Towers development in the Mixed Use Project Award (built) category, and Sumou Real Estate Development Company for its Bawabat Makkah project in the Best Urban Design & Master Planning Award category. – TradeArabia News Service

Aldar says will repay debt, sees more consolidation

Mon, 23 Apr 2012 07:11:54 GMT

Abu Dhabi's Aldar Properties, currently in merger talks with rival Sorouh Real Estate, says it is committed to repay its huge pile of debt and sees further consolidation in the emirate's battered property market.

The company, which has been rescued twice by Abu Dhabi with funds amounting to nearly $10 billion, will not need any more funds from the government, chief executive Mohammed al Mubarak, said on the sidelines of a property conference on Sunday.

"We are committed to all our debts and they will be paid, we are in a healthy financial position," Mubarak told reporters.

"We won't need more (financial) help, we are comfortable on the financing side," he added.

The potential merger of struggling Aldar and Sorouh unveiled last month could take some pressure off state investment fund Mubadala, which owns about 35 per cent of Aldar.

Aldar's $1.25 billion 10.75 per cent bond, maturing 2014 was bid at 109.5 on Saturday, according to Thomson Reuters data, to yield 5.847 per cent, about 23 basis points tighter since beginning of the month.

The builder of the Yas Marina Formula One circuit, which was forced to sell key projects to the government including the Ferrari World Theme Park, is generating income from the lease of "many residential and retail projects", Al Mubarak said.

"Our model has to be to build more projects," he added.

Aldar secured a 4-billion-dirham ($1.1 billion) credit facility from National Bank of Abu Dhabi last week, a deal expected to help the developer manage its liquidity needs.

State-owned investment fund Mubadala, which holds a near-majority position in Aldar said last month that it transferred a 14 per cent stake in the developer to secure a loan facility from Abu Dhabi Commercial Bank.

Shares of Aldar were up 2.8 per cent at 1.12 dirhams.

Abu Dhabi is poised for more consolidation as it streamlines state-linked firms in the face of tougher property and economic conditions.

"Abu Dhabi market is growing - on that front it has to be managed, this could be either through consolidation or other means," Mubarak said.

The state-backed tie-up between Aldar and Sorouh to create a company worth some $15 billion in assets comes as prices slide in the emirate's real estate sector, which has not recovered from the downturn seen after the 2008 global financial crisis.

Property firms have been forced to cancel projects and restructure their huge pile of debt.

Sorouh, which has assets of 14.1 billion dirhams, has fared better than its bigger rival, supported by a focus on existing project completion and delivery.

While Dubai's real estate crisis came as a shock to global markets, the Abu Dhabi reckoning has been a more gradual and incremental process as real-estate values continue to slide. – Reuters

Tharwa Saudi sells plots for $58m

Mon, 23 Apr 2012 07:11:53 GMT

Tharwa Investment Company’s Saudi unit sold 44 plots for over SR220 million ($58.7 million) in the Dhahran Views project at an auction recently.

The company announced today that it had deposited the final payments for the exits of the Shariah-compliant Dhahran real estate portfolio into the clients’ accounts, recording overall returns of 37 per cent, it said.

Mohammed Saud Al-Osaimi, executive vice president, investment banking, said Tharwa Saudi Arabia (subsidiary) held a public auction in December 2011 for the master plan of the Dhahran Views project which is located on King Abdullah Road.

Al-Osaimi said the volume of sales reached more than SR220 million on a total area of about 130,000 sq m. Plots which were put up for sale at the auction included 35 investment plots and 8 commercial plots, in addition to a premium central plot of an estimated area of 40,000 sq m.

Al-Osaimi stressed that exiting from the Dhahran Real Estate portfolio was a great success for the company under the current circumstances, and given the repercussions of the global financial crisis which heavily impacted the real estate sector in all countries of the world.

"Saudi real estate market is the best choice for investment in the region due to the great demand and our experience in the Dhahran Views project is the best evidence of that as this has been the first real estate exiting project carried out by Tharwa which always aspires to achieve the best financial results for our customers," Al-Osaimi said. - TradeArabia News Service

Thousands to attend Cityscape event

Mon, 23 Apr 2012 07:11:53 GMT

Thousands of investors will gather to learn about the latest market trends and updates of many of Abu Dhabi’s master developments at the region’s leading real estate development and investment event, Cityscape Abu Dhabi.

The exhibition which is being held under the patronage of H H General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, opened today at the Abu Dhabi National Exhibition Centre.

Al Nahyan toured the exhibition halls of the event which will end on April 25, a statement from the event organisers said.

This year’s highlights include the latest developments of the Abu Dhabi Urban Planning Council’s (UPC) emirate-wide urban development strategy, Vision 2030, and the Emirati Housing initiative, where 7,500 new homes for Emirati families across all three regions of Abu Dhabi, Al Ain and Al Gharbia will be showcased.

Falah Al Ahbabi, general manager, UPC, said: "With Abu Dhabi's 2030 Urban Vision taking shape across the Emirate, we are keen to acknowledge and update stakeholders on how the UPC is implementing its various plans and initiatives.”

“By updating the public on the Emirate-wide urban development strategy we move further forward with establishing Abu Dhabi as the region's catalyst for a truly sustainable, modern, vibrant, cosmopolitan and world-class Arab Capital for the 21st Century," he said.

Some of the other key developers taking part this year at Cityscape Abu Dhabi include Tamouh Investments, Sorouh, Aabar Properties, Mubadala, and the Tourism Development & Investment Company (TDIC), which will provide updates about the progress of its most prestigious developments, with a major emphasis on Saadiyat.

The island destination will be featured in a new setting showcasing the actual experience and lifestyle of the island growing community. The master developer of major tourism destinations will also showcase Abu Dhabi city projects such as Eastern Mangroves complex and start registering bookings for its residential component in preparation of the actual launch.

“TDIC is looking forward to showcasing its most prestigious projects at this year’s Cityscape Abu Dhabi,” said Ahmed Al Fahim, TDIC executive director for marketing, communications, sales and leasing. “We particularly look forward to highlighting our highly sought-after residential communities, and visitors to our stand will have a unique opportunity to learn more about these.”

Aldar Properties, another headline exhibitor, has revealed its latest plans this year at Cityscape Abu Dhabi, including the announcement of Al Muneera and Al Zeina as the first beachfront residential developments in Abu Dhabi now available for purchase by national and international buyers.

Prices for the two waterfront Al Raha Beach communities will start at just under Dh700,000 ($190,605.7) for a one bedroom apartment, the statement said.

A regular feature and highlight of Cityscape is the Middle East Real Estate Summit, where a panel of more than 35 industry leading speakers currently active in the Middle East will share their collective experience and tackle the major challenges facing the regional real estate sector.

Among the highlights of the two-day conference include the latest analyses, trends and economic indicators of the Middle East real estate market from Farouk Soussa, chief economist for the Middle East at Citi, UAE; and new deployment strategies of building a balanced, profitable real estate portfolio in regional markets by Faisal Khan, principal at Abraaj Capital.

Tariq Ramada, chairman of Tharaa Holding, and Joseph Bonner, the chief investment officer at Mubadala Pramerica, will also highlight how to develop increasingly sophisticated deal structures to increase real estate market activity and regional growth.

The Cityscape Awards for real estate Mena will be held on April 23, rewarding the latest cutting-edge projects shaping modern city skylines across the Middle East and Africa.

The awards come in eight categories and will be contested among 21 shortlisted organisations, it said.

Among the more notable shortlisted nominees include Adnec for the Best Sustainable Development Award; Aldar and Mubadala for the Commercial, Office & Retail Project Award; and Sorouh Real Estate for the Mixed Use Project Award.

The Investor Round Tables will take place from April 22-24, where C-level investors and developers discuss partnership opportunities and strategy.

Chris Speller, group director for Cityscape Abu Dhabi, said: “The sixth edition of Cityscape Abu Dhabi promises to be the most highly anticipated yet, with major announcements and development updates showing that Abu Dhabi’s real estate market is regaining momentum.”

“The exhibition will be buzzing as leading developers take centre stage to provide updates of their headline projects, while the Middle East Real Estate Summit presents a unique business platform dedicated to addressing the challenges currently facing the regional real estate market,” he said.

Cityscape Abu Dhabi has firmly established itself as the region’s leading real estate development and investment event, attracting more than 25,000 visitors from 78 countries last year.

The foundation partner of Cityscape Abu Dhabi 2012 is the Department of Municipal Affairs, with Ubiquitous Telecom Technology supporting the event as the silver conference partner. – TradeArabia News Service

NBAD launches UAE real estate fund

Mon, 23 Apr 2012 07:11:53 GMT

National Bank of Abu Dhabi has launched a real estate fund in partnership with a Kuwaiti firm to seek investment opportunities in the UAE's property sector, the lender said on Sunday.

NBAD, the UAE's top bank by market capitalisation, has teamed up with Kuwaiti firm Gulf Investment Corp for the venture, which it plans to convert to a real estate investment trust (REIT) in the future.

NBAD Investment Management is a fully owned subsidiary of the bank and will be incorporated in the Dubai International Financial Centre (DIFC), regulated by the Dubai Financial Services Authority.

"In the future, it is our intention to bring this fund to an initial public offering, thereby creating what we expect to the region's first REIT," Mahmood Al-Aradi, senior general manager of NBAD's financial markets division said in a statement.

Aradi added later that the IPO could take place in the next "couple of years".

The fund will focus on high-quality income-generating properties in the UAE where property prices have fallen sharply since the 2008 global financial crisis.

It is seeking a portfolio of between 7-10 properties in the industrial and warehousing sectors, primarily in locations such as free zones. The fund will be advised by Abu Dhabi National Properties, an NBAD subsidiary, and property consultants Knight Frank. Target investors are global institutional investors looking at diversification opportunities in the region.

"We are seeing a special interest from investors wanting to allocate to the Mena (Middle East and North Africa) region. The Gulf Cooperation Council is a new geography for many international investors," Russell Read, deputy chief executive officer and chief investment officer at GIC, told reporters.

The fund will be launched with a seed capital of 100 million dirhams ($27.2 million) with NBAD and Gulf Investment pooling in 50 million dirhams each, and will be leveraged three times to the equity.

The parties expect to start raising money for the fund soon, Aradi told reporters in Dubai.

Zain Abdullah, senior executive officer managing the fund, added that the target size of the fund was "conservatively" estimated at 1 billion dirhams, with a minimum ticket size of at least 25-50 million dirhams. - Reuters

Deyaar to deliver 3 projects this year

Sun, 22 Apr 2012 10:57:30 GMT

Struggling Dubai developer Deyaar posted a 64 percent drop in its first-quarter net profit and said it plans to deliver three long-pending projects by the end of this year.

Deyaar made a net profit of 9.4 million dirhams ($2.56 million) during the first-quarter, compared with 26.3 million dirhams in the prior-year period.

Dubai's second-largest property developer by market value said its gross revenues reached 150 million dirhams in the quarter and its total assets were valued at 6.7 billion dirhams.

Deyaar, badly hit by Dubai's property bust, continues to reel under the impact of the global financial crisis. The company said the repercussions of this were seen on the first quarter as well.

"We look forward to delivering another three projects over the course of this year," Saeed Al Qatami, chief executive of Deyaar said in a statement.

The statement gave no details of the projects which the company was working on. - Reuters

Saudi group to unveil key housing projects

Sun, 22 Apr 2012 10:57:30 GMT

Mizat Development Company, a leading Saudi real estate company, is set to showcase its major housing projects at the upcoming 'Riyadh Exhibition for Real Estate and Urban Development 2012 (Restatex 2012).'

The Saudi group said it plans to introduce its Darat Al-Hada project, which is located in one of the finest residential neighborhood in Riyadh, having 98 housing units on an area that exceeds 40,000 sq m.

The project will be implemented in two phases. The phase I consists of 48 housing units, its area ranges from 325 - 665 sq. m., while the second phase consists of 50 housing units.

The exhibition will be held from April 29 to May 2 at Riyadh Convention and Exhibition Center.

Mizat Development Company CEO Abdulraheem Al Towaijri, said: “Restatex 2012 is considered an ideal platform for establishing contact with real estate development companies and investors. This event helps in highlighting high investment opportunities in Saudi Arabia and the region.'

'We are confident that the exhibition will provide investors with the latest information about our diverse projects portfolio and encourage them to be part of it too,' he added.

Annually, the expo attracts more local and international attention to real estate sector in the Kingdom.

'This would allow us to present new projects and confirm our efforts to be the most trusted and confident real estate partner.'

'We will focus our attention on this upcoming exhibition to present our development works in “Darat Al-Hada” project in Riyadh and our company’s commitment to build and implement housing units in accordance with the engineering and construction quality standards,' he added.-TradeArabia News Service

Saudi Dar Al Arkan Q1 net up 7pc

Sun, 22 Apr 2012 10:57:30 GMT

Saudi Arabian real estate company Dar Al Arkan said on Saturday its first quarter net profit rose 7.1 per cent year-on-year due to improved gross margins in real estate sales.

The firm posted a net profit of SR292.6 million ($78.02 million) in the first quarter of 2012, compared with SR273.1 million in the same period last year, it said in a statement on the bourse website.-Reuters