Nakheel to develop Dh2.5 billion villa complex at Nad Al Sheba in Dubai

Arabtec shares suspended as rumours of Aabar buyout surface : Thursday, July 17 - 2014 @ 14:12 The Dubai Financial Market (DFM) suspends trading in shares for Arabtec. Shares in construction giant Arabtec were suspended today (Thursday, July 17), following reports late on Wednesday that Aabar Investments, Arabtec’s second largest shareholder (18.94%), was planning to buyout some of the shares currently owned by former CEO, and biggest shareholder (28.9%), Hasan Ismaik. Ismaik resigned as CEO of the company on June 18, only two weeks after raising his ownership in the firm from 8% to his current 28.9% share. Coupled with state-owned Aabar decreasing its stake from 21.57% to 18.94%, confidence in Arabtec rapidly fell throughout June, with the firm losing 50% in market value within days. Although stability was drastically regained by early July, as Aabar announced it would not be abandoning its partners, there was no mention as to what would be of Ismaik’s shares considering his dramatic exit, nor indeed what caused the saga and what was in the pipeline. Even the latest reports that Ismaik may be selling to his former partners fail to explain why each party is sharply contradicting their buy/sell strategy throughout June. Nonetheless, such news is likely to further rally support for Arabtec investors, and as recent weeks have shown, the entire market. It is for this reason that regulators have seemingly learnt their lesson and are awaiting clarity on the issue before allowing the ongoing Arabtec saga to, once again, dictate market performance. Representatives of Aabar Investments and Hasan Ismaik have both declined to comment on the reports. ========================== House of cards: Arabtec saga exposes Dubai market is resting on shaky ground : Sunday, July 13 - 2014 @ 10:06 By Philip P. Merrell A turbulent week at Arabtec has contradicted an IMF forecast that Dubai is no longer a construction-driven economy. Last week’s Country Report by the International Monetary Fund (IMF) highlights that Dubai’s “economic growth has become more broad-based” compared to crisis-stricken 2008. It points out that the real-estate sector’s share in the Dubai economy has dropped from 14 per cent in 2008 to 8 per cent in 2013. However, throughout last week, construction giants Arabtec endured first turmoil, then a surge in shares with a profound effect on the Dubai Financial Market (DFM). As such, the controversy surrounding this saga has reignited the vulnerability of Dubai faces as a result of careless management within the real-estate sector. In the past 12 months, Arabtec, backed by Abu Dhabi investment giants Aabar, announced a series of high profile ventures, from a $40 billion deal to build one million homes in Egypt, to intentions of expanding their activity into the oil and gas sectors. Consequently, the market value of the firm rocketed in the last year by 323 per cent. However, trouble began looming in early June of this year when CEO Hasan Ismaik upped his stake in the firm from 8 per cent to 28 per cent, only to ‘resign’ two weeks later. Simultaneously, Aabar had decreased their shares in the company from 21.57 to 18.94 per cent. Whether Ismaik’s departure was voluntary or not, investors began fearing the worst, and throughout June, shares at Arabtec began to plunge, eliminating $6.5 billion in market value. Last Wednesday (June 2nd), the new leadership organised a press conference in which they categorically denied rumours that Aabar Investments would be deserting them, as well as confirming that no future projects would be cancelled or delayed. Buoyed by this stability, but also the low share price, which had dropped by 45 per cent throughout June, confidence was instantly restored as Arabtec shares began to soar once again. In the following four sessions, they climbed a staggering 55 percent to AED4.2, although this was still 46 per cent below their record peak in May. Crucially, the extreme volatility surrounding Arabtec stock has had a profound effect on the construction sector and, more worryingly, the entire DFM. On June 30, when Arabtec shares dropped a maximum allowed 10 per cent to a record low of AED2.61, other Dubai real-estate powerhouses helplessly followed suit. Drake & Scull International also endured a maximum daily loss of 10 per cent of their value, Union Properties fell 9.55 per cent, and Dubai Investment Co dropped 8.16 per cent, whilst regional giants Emaar Properties fared slightly better losing 3.67 per cent in value. Moreover, the DFM, as a whole, recorded a loss of 4.41 per cent by the end of the day. Unsurprisingly, the rapid surge in Arabtec stock that followed also transpired in a bullish rebound by the DFM, which has seen growth in consecutive sessions since the beginning of the month. Throughout July, the DFM has recorded a total gain of 15.7 per cent. This saga has raised several concerns, which demand answers in order to prevent another property crash from occurring. Namely, why had regulators turned a blind eye to such irregular management activity in Arabtec? A CEO tripling his shares in a firm that aims to become one of the globe’s top 10 companies by 2018, and then stepping down within two weeks citing ‘personal reasons’, is nothing short of scandalous. How Ismaik financed this acquisition is equally puzzling and it is this sheer absence of transparency that prompted investors to push Arabtec into turmoil. Secondly, how is it possible that such a crash within the construction sector has gone relatively unpunished? Despite losing $6.5 billion within days, Arabtec, like others in the sector, is back on the rise and showing no signs of slowdown. Nonetheless, the positive rebound is no cause for celebration, as it exposes that Dubai’s real estate is more of an investors’ market than a homeowners’ one. Whilst steps have been taken to limit property flipping, such as increasing deposit and registration costs, in a city ever-engulfed by extravagant real estate projects, it will be difficult to curb this problem entirely. Finally, the Arabtec saga contradicted, to a large extent, reports by the IMF that Dubai’s economy is no longer as susceptible to failures within the construction sector. The events of the past few weeks proved that large real estate firms are more than capable of dragging the entire market down with them, depending on internal activity. Moreover, the report suggests, “the robust growth for Dubai in the coming years will be driven by big real estate projects and huge spend in preparation to host the Expo 2020”. This will mean grander and costlier projects, perhaps, than ever before as plans to build the world’s largest mall and the world’s busiest airport have already been launched (although, ironically, Dubai already holds these titles). The IMF’s suggestion on how to ensure these mega-developments do not overrun on cost and overheat the market is to ensure that “careful macroeconomic management and appropriate strategic planning measures” are in place. Management, Arabtec has taught us, being the key word. ==================== Nakheel to develop Dh2.5 billion villa complex at Nad Al Sheba in Dubai Sananda Sahoo July 19, 2014 Updated: July 19, 2014 05:38 PM Read more: http://www.thenational.ae/business/industry-insights/property/nakheel-to-develop-dh25-billion-villa-complex-at-nad-al-sheba-in-dubai#ixzz37yziIBe1 Follow us: @TheNationalUAE on Twitter | thenational.ae on Facebook The developer Nakheel’s villa complex in the Nad Al Sheba area of Dubai that will comprise hundreds of villas will run up construction costs of Dh2.5 billion. The development will include 900 units of three to five-bedroom villas for lease, besides 100 serviced homes. All of these come with private swimming pools. Artists’ impressions of the yet-unnamed gated community show low-rise villas in landscaped surroundings, spread over 2.5 million square feet. The development will include a clubhouse and a retail centre with shops, cafes, a community pool and sports facilities. The separate complex of 100 serviced villas will include a health club with spa, a lap pool and restaurant, besides housekeeping and laundry services. Residents of the complex will have access to Nakheel’s beach facilities on Palm Jumeirah and daily transport services to the city’s malls and attractions. As Dubai’s composite business confidence index continues to grow, the real estate sector is recovering from the lows of the global financial crisis of 2008. In the first quarter, the index was at 135.5 points, an increase of 22.4. This month, Dubai Holding announced the Dh25bn Mall of the World project, which will include a mall, a theme park, 100 hotels and serviced apartment buildings. In a separate announcement yesterday, Dubai’s Azizi Developments launched 99 apartments, whose total value is Dh140 million, in Al Furjan near Discovery Gardens. Called Azizi. Orchid Residence, the project comprises one to three-bedroom furnished apartments. Prices start at Dh950 per sq ft and construction is expected to be complete by December next year. The apartments, which are all up for sale, start at 700 sq ft. The total value of real estate sales in Dubai was Dh21.4bn year to date. The figure was Dh38.3bn for the whole of last year, according to the Dubai Land Department. Most of the uplift in real estate transactions last year came from land transfers, according to JLL’s first quarter report on the Dubai real estate market. “Despite this increased activity, there remain few reported transactions of completed, income producing assets,” it said. Prices of residential units in the first quarter rose 33 per cent year-on-year and average rents increased 23 per cent year-on-year in Dubai, according to JLL. However, price growth stalled in premium locations in the second quarter, the broker Asteco said this month. This month, Nakheel reported a net profit of Dh1.85bn, an increase of 54 per cent for the first half supported by revenue growth from property development, retail, leasing and leisure businesses. It said it would also prepay Dh7.9bn owed in bank debt in August, four years ahead of a March 2018 due date. The construction value of the Nakheel project in Nad Al Sheba is estimated at Dh2.5bn. Dubai’s Arif and Bintoak Consulting Architects and Engineers will design and provide engineering services at a cost of Dh27 million. Expected to be completed in 2016, Nakheel will release construction tenders in three months, and award a contract by the end of the year. “Our current residential leasing portfolio of almost 17,000 homes continues to be in huge demand, with almost 100 per cent occupancy across the entire range,” Ali Rashid Lootah, the company’s chairman, said in a statement. Nakheel’s residential portfolio includes The Gardens, International City, Discovery Gardens and Jebel Ali Village. More supply such as the 942 units of three-bedroom town houses at Warsan Village near International City, and Nad Al Sheba is in the pipeline. Also waiting to come onstream are 10 hotels, including luxury and budget properties at The Palm Tower on Palm Jumeirah, Deira Islands, Dragon Mart and Ibn Battuta Mall, over the next five years. Expected this year is a 246-room three-star hotel at Dragon Mart. ssahoo@thenational.ae ======================= Second tallest tower in UAE nears completion Marina 101 will be second only to the Burj Khalifa. Courtesy Sheffield Holdings Second tallest tower in UAE nears completion Second tallest tower in UAE nears completion Second tallest tower in UAE nears completion The National staff July 21, 2014 Updated: July 21, 2014 03:14 PM       Related Phoenix Towers plan to pip Kingdom Tower and Burj Khalifa as world’s tallest Phoenix Towers plan to pip Kingdom Tower and Burj Khalifa as world’s tallest Burj 2020 in Dubai to feature world’s highest observation deck In pictures: The tallest towers in Abu Dhabi In pictures: The world’s ten tallest residential buildings New York hotel chain to manage 101-storey project at Dubai Marina Poised to become the second tallest tower in the UAE, Marina 101 in Dubai is now 80 per cent complete according to its developer Sheffield Holdings. The 425-metre tower, which will trail only the 828m Burj Khalifa, is expected to be completed early next year. Dubai’s Princess Tower is currently the second tallest tower in the UAE, standing at 413m, ahead of 23 Marina, which is 393m. “Visually, the tower will be a very distinctive mix-use tower in the midst of the Marina,” said project manager and engineer, Mohammad Jeilani. “We have completed a large part of the construction, with merely a few elements left. Construction is well underway, with no delays to speak of.” Upon completion the tower will feature 420 hotel rooms and hotel apartments, 60 three-bedroom residential units, eight duplexes, a five-star hotel, plus health clubs and swimming pools on different levels. Mock-ups of the hotel apartments and residential units are ready for viewings by investors and potential end users, Sheffield Holdings said in a statement. business@thenational.ae =============