NEWS BRIEF 48 SUN DAY 06 December 2015

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RESEARCH DEPARTMENT

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REAL ESTATE NEWS UAE

CONSTRUCTION CONSULTANCY SWEETT GROUP TO PULL OUT OF THE MIDDLE EAST UAE’S SAGER GROUP PUTS ITS STAMP ON ROYAL MAIL HQ PROJECT IN LONDON NEW ARRIVAL IN DUBAI MARINA TOPS OUT IN UAE’S 10 TALLEST RESIDENTIAL TOWERS INDIAN DEVELOPERS SWEETEN PROPERTY DEALS FOR NRIS IN UAE

DUBAI

DARING TO BE DIFFERENT: DANUBE'S RIZWAN SAJAN SHEIKH MOHAMMED ISSUES NEW LAWS TO DRIVE DUBAI SMART CITY BID NEW LUXURY DUBAI HOTEL OPENS, TO UNVEIL BENTLEY SUITE IN EARLY 2016 DUBAI WILL BE HOME TO TWO REPLICAS OF PARIS EIFFEL TOWER TOP 5 COMMUNITIES FOR TENANTS IN DUBAI EXPERTS WARN NEW DUBAI STATISTICS LAW COULD AFFECT TRANSPARENCY, PROPERTY SECTOR EMAAR JV SECURES APPROVAL FOR HO CHI MINH CITY PROJECT EXPATS IN GULF MOST LIKELY TO BE ABLE TO AFFORD PROPERTY, HSBC STUDY SAYS DUBAI’S DEPA TO CUT JOBS AS IT SEEKS TO TRIM COSTS DUBAI’S DELAYED IMG WORLDS OF ADVENTURE THEME PARK TO OPEN EARLY 2016 'THE ADDRESS' IS NOW AT EMAAR'S DUBAI OPERA DISTRICT DAMAC PROPERTIES SWEETENS DEALS FOR BUYERS FROM CHINA WITH A FREE FLIGHT TO DUBAI NEW ARRIVAL IN DUBAI MARINA TOPS OUT IN UAE’S 10 TALLEST RESIDENTIAL TOWERS

ABU DHABI 2-BED SERVICED APARTMENTS IN ABU DHABI FOR UNDER DH150,000 PRESTIGIOUS LOCATION AND BRAND ADD PREMIUM TO DH4M ABU DHABI APARTMENT CIMGLOBAL OPENS ABU DHABI OFFICE AND TARGETS MICE SECTOR

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INDIAN DEVELOPERS SWEETEN PROPERTY DEALS FOR NRIS IN UAE

TUESDAY 01 NOVEMBER 2015 The real estate outlook for India is 'extremely bright' with the sector set to witness growth driven by new government initiatives, according to JLL, a global real estate consultancy. “The outlook is extremely bright owing to several factors that are now playing out. Firstly, the economy is on an upswing, and this will result in better demand. Secondly, due to the Smart Cities, ‘Housing for all by 2022’ and Amrut initiatives being activated by the government, the real estate sector is going to see a lot of action,” said Ashwinder Raj Singh, CEO – Residential Services, JLL India. “Thirdly, the recent announcement by the government easing the foreign direct investment norms in construction sector will give a boost to the construction sector. The rules regarding minimum built-up area and the capital requirement will go a long way in helping to alleviate the sector’s liquidity issues, and will give a lot of stimulus for growth.” Though there are various forms of investment such as gold, fixed deposits, the equity market and bonds available, Singh stated real estate is the safest bet in the long run – and the most reliable investment instrument,. “Most of the properties built a few decades ago have easily yielded a return of 200-300 per cent. No other investment tool can give comparable results,” he added. The three-day Indian Property Show, which opened at Dubai World Trade Centre on Tuesday by Bollywood actor Arbaaz Khan, features over 170 developers from all over India, showcasing more 600 projects and about 45,000 properties. Buyers' view Amit Kumar, a non-resident Indian (NRI), hailing from Punjab, is hunting for a two-bedroom apartment in NCR. “There are good offers from developers, but I still find the prices quite high and I am not sure whether I will be buying now,” he stated. Sahili Pandit, an administrative secretary with a local firm, states that the cost of property is high in Mumbai and hence is looking for a house in Pune. “Pune is cheaper than Mumbai, but prices are going up. I have come prepared to at least book an apartment here at the exhibition that offers me flexible payment option,” she revealed. Weaker rupee Sunil Jaiswal, President – Sumansa Exhibitions, organizers of Indian Property Show, said: ““With rupee depreciation by 20 per cent around US dollar – which translated into bigger remittance – this is a very good time specifically for NRIs to invest in Indian property.” He added: “The other driving force is that real-estate is one of the fastest-growing sectors in India with positive prospects and with higher returns on property. Already, projects like 100 smart cities planned across India have captured NRIs’ eye and with the government easing foreign direct investment flow in such projects, the investment is expected to boost further.”

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One UAE dirham was fetching Rs18.11 Indian rupees on Tuesday afternoon.

Source: Emirates 24/7 Back to Index

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'THE ADDRESS' IS NOW AT EMAAR'S DUBAI OPERA DISTRICT

SUNDAY 06 DECEMBER 2015 The Dubai Opera district in Downtown Dubai is set to witness a new project, with Emaar Properties cashing in on its popular The Address brand. The Dubai bourse-listed developer is planning to launch The Address Residence Dubai Opera on December 12, 2015, property agents told Emirates 24|7. According to agents, the project, located close to Burj Khalifa, the world’s tallest tower, and Burj Lake, will consist of 65-storey residential tower and a 55-storey hotel/serviced apartment tower. Each of the towers will have gross floor space of nearly 590,000 square feet. The design of the towers is inspired by the seafaring history of the Middle East, with the terrace apartments offering views of Burj Khalifa, the Opera District and the Dubai Fountain. The company has not disclosed launch prices, but agents have started to approach clientele for bookings. "The planned completion date is July 2020," agents said. Emirates 24|7 reported in May 2015 that the developer had launched Forte, its second tower in the Opera District after Opera Grand, with units commanding prices of as high as Dh2,700 per square feet. Dubai Opera, the centrepiece of the Opera District, is set for completion in March 2016 and will be as iconic in appearance as the world-famous Sydney Opera House, according to Emaar. As for Dubai Opera, the Arabian dhow has been the inspiration behind its architecture. The 2,000-seat, multi-format performing arts venue in the emirate will have the ability to transform into three modes; from a theatre to a concert hall and into a “flat floor” form, becoming a banquet of event hall. Emaar reported a 16 per cent increase in its nine-month 2015 net profits of Dh3.048 billion, compared to Dh2.622 billion during the same period in 2014. Revenues for period stood at Dh9.849 billion, up 25 per cent over the same period last year at Dh7.888 billion. Demand for the launches in Dubai, especially from end-use investors, has been strong with total sales during the first nine months of year at Dh7.513 billion while sales in international markets during the same period were valued at Dh3.929 billion, the developer has said. In August 2015, Lookup.ae, a local real estate portal, said a total of 120 new projects have been launched in Dubai in the past 24 months, with investors being drawn to the off-plan market due to attractive prices and payment plans. Source: Emirates 24/7 Back to Index

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DAMAC PROPERTIES SWEETENS DEALS FOR BUYERS FROM CHINA WITH A FREE FLIGHT TO DUBAI

SUNDAY 29 NOVEMBER 2015 The property developer Damac is seeking to entice Chinese buyers into the Dubai market by offering a free holiday to the emirate. The company and its Shenzhen-based partner Qfang, with which it signed a deal this month, has offered Chinese investors between now and the end of January the chance to visit the city with a free flight ticket, hotel stay and visa. According to Damac, prices for its property range from Dh1.8million to Dh36.8m. “The idea of this offer is based on our belief that the Dubai real estate market can offer very lucrative returns for investors from China, and from all over the world,” said Ziad El Chaar, the managing director of Damac Properties. “The return on investment for Damac projects is between 7 and 8 per cent in a tax-free environment.” Qfang’s chairman Liang Wenhua said the offer was “intended to reward Chinese buyers with a special gift by allowing them to visit Dubai and discover in person the magnificent attributes that this metropolitan city is offering”. Damac Properties has been making a concerted effort to sell the Dubai property market in China over the past few months as the stronger dollar has made the market less affordable to Russians and buyers from the euro zone. Its first deal was signed with broker 5i5j in June. A roadshow followed in August. Source: The National Back to Index

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NEW ARRIVAL IN DUBAI MARINA TOPS OUT IN UAE’S 10 TALLEST RESIDENTIAL TOWERS

MONDAY 30 NOVEMBER 2015 A look across the Dubai skyline and there’s no shortage of possibilities for a place in the UAE’s top 10 tallest residential towers. But there’s set to be a new inclusion after the developer Damac confirmed that its 94-level Damac Heights tower in Dubai Marina has topped out. Once completed, it could be the country’s seventh tallest residential tower at a height of 335 metres, featuring 94-levels and costing Dh2.4 billion. It would place behind Dubai’s Burj Khalifa (828m), Princess Tower (413m), 23 Marina (392m), Abu Dhabi’s Burj Mohammed Bin Rashid (381m), and in Dubai Marina the Elite Residence (380m) and The Torch (337m). Sheffield Holdings’s Marina 101 has also topped out at 426.5m, which would make it the UAE’s second tallest, though its completion date has not been confirmed. In August, Meydan announced its Meydan One project which is slated to include a 711m residential tower. Damac meanwhile confirmed that facade work on Damac Heights had reached level 69, with handover expected to be at the end of next year. It will comprise one, two, three and four bedroom apartments, plus duplexes and penthouses. The top 40 storeys will be high-end with bespoke interior design. “Occupying top 40 storeys of 94-level tower, each of the luxury apartments at Damac Residenze is fitted out with the latest furnishings from the Fendi Casa collection to provide the most stylish living experience,” said Niall McLoughlin, senior vice president, Damac Properties. Property prices in Dubai have been sliding throughout the year and are expected to continue to fall next year with a growing supply. A report last week from Cluttons said that while off-plan sales have remained popular, prices are expected to fall by 3 to 5 per cent in 2016. Source: The National Back to Index

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DUBAI’S DELAYED IMG WORLDS OF ADVENTURE THEME PARK TO OPEN EARLY 2016

MONDAY 30 NOVEMBER 2015 Dubai’s IMG Worlds of Adventure has pushed back its planned opening date to early 2016, about two years after it completed the steel frame of the main building in the theme park. The park that is set to feature Marvel comic heroes, Cartoon Network characters and dinosaurs, has appointed Lennard Otto, the former general manager of Al Ain’s Wadi Adventure, as its new chief executive. Mr Otto, who is being promoted from his role of general manager, will be the park’s first chief executive. He joined the company in April 2015 after working at Wadi Adventure for five years. The 1.5 million square feet theme park is located in Dubailand on the outskirts of Dubai. The company agreed a Dh1.2 billion syndicated loan to build the park in April last year. In August 2013, the park owners Ilyas & Mustafa Galadari (IMG) Group said that it had completed the giant dome- shaped steel roof skeleton and the park was scheduled to open in early 2014. The date was subsequently revised to late 2014 and then 2015. In a statement, the company said: “IMG Worlds of Adventure has evolved from being a 1.2 million sq ft project, when it was first announced, to being a colossal 1.5 million sq ft containing four zones: Marvel; Cartoon Network; Lost Valley – Dinosaur Adventure; and IMG Boulevard. The IMG Worlds of Adventure offering has been substantially expanded and, as is natural with a project of this scale and size, construction times have adjusted accordingly.” IMG said that the scope of the project had been increased to include 28 eateries and 25 shops. The number of parking spaces was also doubled to 4,500, while the ride mix was also increased. Disney acquired Marvel in 2009, after IMG bought the rights to use Marvel characters as a theme for its rides. Designed as the first phase of its City of Arabia scheme, which was also to include a 4 million sq ft shopping mall, the park was originally due to open in 2011. The delay is likely to put IMG Worlds of Adventure in competition with Dubai Parks & Resorts’ 25 million sq ft theme park complex which is currently being developed in Jebel Ali and which is also due to open next year. Last week Dubai Parks reported that it had completed 50 per cent of construction work at the complex. IMG said that in his new role, Mr Otto will oversee the strategic vision, direction and operational leadership of the park. “As the first world-class theme park in Dubai to open next year, we will offer our guests an interactive and immersive entertainment experience,” Mr Otto said. “I am also excited for the future development

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of the park as I believe we have a highly replicable model that we can look to take into a global space in the future.”

Phil Taylor, managing director at Team Leisure, said: “IMG found itself at the front of the queue to build the first major theme park in Dubai. If a theme park ticks all the boxes and provides family entertainment, people can become loyal quickly, and IMG seems in danger of losing first-mover advantage.” Source: The National Back to Index

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CIMGLOBAL OPENS ABU DHABI OFFICE AND TARGETS MICE SECTOR

TUESDAY 01 DECEMBER 2015 CIMGlobal, the professional conference organiser, has opened an office in Abu Dhabi to tap the growing business tourism market in the emirate. “We see huge potential in the Mice [meetings, incentives, conferences and events] sector in Abu Dhabi,” said Kruthika Naveen, the business coordinator for CIMGlobal Abu Dhabi. “We have been exploring the market in the GCC and found Abu Dhabi to be the heart of the region with business links and initiatives that go beyond most other cities. This is our first time in the UAE, but we already have two projects under way and believe there will be many others in the pipeline.” The company will be based in Adnec, with Humaid Matar Al Dhaheri, the acting group chief executive at Abu Dhabi National Exhibitions Company, saying that Adnec will support “CIMGlobal to develop their portfolio of international conferences and exhibitions”. The capital’s conference centre hosted 327 events and 1.6 million visitors in 2014, reporting 5.2 per cent annual growth in visitor traffic last year, according to the industry watcher TRI Consulting. In addition, hotels and other venues in the city hosted hundreds of events not included in the above figure. The Mice sector in the Arabian Gulf is valued at US$1.3 billion, with the UAE accounting for half of that at $653 million, according to Dubai’s World Trade Centre. The Abu Dhabi Tourism and Culture Authority targeted specific geographies for 2015, looking to grow the India market by 20 per cent. It provided 231,702 guests last year. It also looked to grow the Gulf market, which welcomed 240,478 guests last year, by 30 per cent. The region’s key Mice destinations include the UAE (Dubai and Abu Dhabi), Bahrain and Qatar in the GCC, and Egypt, Morocco and Jordan in the wider Mena region – excluding Turkey which is a major international Mice destination. Based on a recent study by Pacific World, India, the US, eastern Europe, Scandinavia and Benelux were the key source markets for the UAE, with the majority of clients coming from the pharmaceutical, IT and automotive industries. “Mice events bring significant volumes of visitors to a destination,” said Rashid Aboobacker, an associate director at TRI Consulting. “Mice travellers generally tend to spend more money at the destination on shopping and tourism activities than leisure travellers, and also offers strong opportunity for the city to attract the visitors back to the city as leisure tourists with their families and friends.” Source: The National Back to Index

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UAE’S SAGER GROUP PUTS ITS STAMP ON ROYAL MAIL HQ PROJECT IN LONDON

TUESDAY 01 DECEMBER 2015 Sager Group, a London developer cofounded by the UAE’s Sheikh Sagir bin Mohammed, has unveiled plans to transform London’s Royal Mail headquarters into a £400 million (Dh2.21 billion) mixed-use project known as Islington Square. The 500,000 square feet site in Islington will be opened up with a new public boulevard created. The redeveloped site will be made up of four buildings containing serviced apartments, retail, leisure and residential space. One of the buildings, 8 Esther Anne Place, involves the restoration of an Edwardian building and at 17 Esther Anne Place the Edwardian facade will be retained, but a new basement and upper floors added. A new building will be put in place at 11 Esther Anne Place and the former Mitre public house is being converted into apartments. In total, the project, which is being developed with the US firm Cain Hoy, will contain 263 private and affordable homes. These will be one, two and three-bed properties ranging in price from £715,000 to £1.79m. Sager Group bought Royal Mail’s former north London Sorting Centre site in 2003 for about £30m, but has since been piecing together other assets to assemble the site. One of the final pieces of the jigsaw was put in place last year with the purchase of a site at Eagle Wharf Road, which has become Royal Mail’s new sorting centre. Royal Mail had been operating at the site in Islington since 1904, and in its heyday there were more than 3,000 postal workers on the site as well as a refreshment club. However, as more modern handling techniques have been incorporated, space requirements for handling post have shrunk. Royal Mail vacated the site in September to allow for its redevelopment to begin. The project is understood to be the biggest conversion of an Edwardian warehouse since the creation of Harrods Village at Barnes in south-west London in the 1990s. “Islington Square is a once-in-a-lifetime opportunity to create a new destination for London,” said Giris Rabinovitch, the chief executive of Sager Group. “It sits in the heart of Islington, which is steeped in history and culture.” The sorting office is just one of a number of historic London sites that have been bought for redevelopment by UAE investors. Lulu Group bought Great Scotland Yard, which was the headquarters of London’s Metropolitan Police between 1829 and 1890, for £110m in July with a view to turning it into a boutique hotel. Abu Dhabi Financial Group (ADFG) paid £370m for the Metropolitan Police’s current headquarters, New Scotland Yard, in December last year and its London development company, Northacre, is awaiting approval for its plans to redevelop the site.

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Northacre is also handling ADFG’s transformation of the Grade II-listed former Palace Hotel, built in 1861, into One Palace Street – a collection of 71 super-prime apartments overlooking Buckingham Palace. Speaking in Dubai last week, Niccolò Barattieri di San Pietro, the chief executive of Northacre, quoted an Arcadis report which said that London is set for £620bn of investment in infrastructure, commercial and residential property over the next 15 years. “What London does incredibly well is marrying the old and the new, creating an incredibly vibrant place for people to live in,” he said. Source: The National Back to Index

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DUBAI’S DEPA TO CUT JOBS AS IT SEEKS TO TRIM COSTS

TUESDAY 01 DECEMBER 2015 Dubai’s Depa will cut jobs as it embarks on a restructuring after posting a loss for the third quarter. The fit-out contractor lost Dh22 million in the June to September period compared with a profit of Dh19m a year earlier. Third-quarter revenue also declined by 32 per cent year-on-year to Dh347m. “Times are tough,” said Umar Saleem, the chief financial officer. “We are consolidating all of our contracting operations in the Middle East under our flagship company, Depa Interiors.” He said the company had previously decentralised operations by building teams of estimators, designers and project managers in markets such as Saudi Arabia, Qatar and Abu Dhabi, but these will now be scaled back. This work will be carried out from Dubai with a skeleton staff maintained in each market. He added that it was too early to say how many jobs would be affected, but said the restructuring would complete “by the end of this year or early next year”. “We’re removing different layers within the organisation because within the next couple of years you will have to be very lean and mean in your operations.” The loss was blamed on the worsening state of the construction market, which is causing delays and payment issues. “The moment projects stretch out beyond their standard duration, then you have prolongation costs kick in, you have unapproved variations, et cetera,” said Mr Saleem. “So although you’ve incurred the costs and you are going to get the money from the client once it gets approved, you cannot book the revenue.” He added that it had also continued its strategy of targeting work “with good paymasters, good main contractors and clients that do not have any financing problems”. Despite the fall in revenue, Mr Saleem said Depa had done well in terms of new contract awards, with its backlog increasing to Dh2.3 billion by the end of September, compared with Dh2.1bn at the start of the year. Awards so far in 2015 include the fit-outs of the W Hotel Dubai and Kempinski Hotel Palm Jumeirah, while its German subsidiary Vedder has just picked up a €15m (Dh58.4m) order for a new luxury yacht fit-out. “Our factories in Germany are fully sold out until 2017 from a capacity standpoint,” said Mr Saleem. Colin Timmons, the general manager of Abu Dhabi’s Al Fara’a Contracting, said 2016 “is going to be tough” for contractors in the UAE, especially for larger firms as they incur bigger overheads through making sure health and safety standards are properly implemented, and that workers are provided with good standards of accommodation and transport. “From the largest to the smaller contractors there’s a huge range in terms of the contractor capabilities, but the client only seeks to achieve the cheapest price. It’s very difficult for larger contracting entities to compete with smaller businesses in the UAE,” he said.

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Source: The National

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CONSTRUCTION CONSULTANCY SWEETT GROUP TO PULL OUT OF THE MIDDLE EAST

WEDNESDAY 02 DECEMBER 2015 The construction consultancy Sweett Group has announced that it is pulling out of the Middle East market after admitting to a bribery offence that was committed in the region. The company, which employs 90 staff at offices in Dubai, Abu Dhabi, Muscat and Riyadh, said in a statement to the London Stock Exchange that it “has decided to exit the region and is reviewing its options”. It did not indicate whether this would be by way of a sale of the business or its closure, stating only that it would “provide a further update in due course”. It blamed challenging trading conditions and a falling order book for the withdrawal. The statement also said that it had admitted to an offence under the UK’s Bribery Act as part of a continuing investigation by the country’s Serious Fraud Office (SFO). The investigation followed an article in The Wall Street Journal in June 2013, which claimed that a Dubai-based former director had solicited a bribe from an architecture firm in return for work on a $100 million hospital in Morocco that was being funded by a UAE charitable foundation. The article said that the payment would be made to an official within the foundation. Sweett Group launched an internal investigation one month later but closed it in January last year, stating that although investigators were not able to speak to the former employee, its directors concluded the allegation was “not proven”. It subsequently announced in July last year that the SFO had launched a formal investigation, with which it was cooperating. In its announcement yesterday, the company said that it had admitted to a charge of “failing to prevent an associated person bribing another to obtain or retain business for the company”. Sweett said: “Subsequent prosecution is expected, with the likely outcome of a fine, the quantum of which cannot be ascertained at the present time.” The offence did not prevent it from bidding for public sector contracts in the US or the UK. Sweett Group also declared a loss of £500,000 (Dh2.7m) for the six months to September 30, despite a 9 per cent year on year increase in revenue to £30.2m. Its Middle East arm declared an operating loss of £800,000 as revenue dropped by 21 per cent to £2.3m. The company, which sold its Asia -Pacific and India business in October, now plans to focus on the UK, Europe and North America. “Today’s announcement brings closure on the Middle East legacy issues a step closer, allowing the group to progress unencumbered in the future. This is an important next step in the strategic turnaround of the business,” said Douglas McCormick, the chief executive. Sweett Group’s shares had dropped by 10.8 per cent to 18.5 UK pence by yesterday afternoon.

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Andy Brown, an analyst at Sanlam Securities, said that Sweett Group “has had a lot to contend with” recently.

Alongside the bribery investigation, it had replaced its finance director, chairman and chief executive. He said: “They don’t believe they have the scale there to make a real difference. “These are huge markets. I think you need to have a meaningful presence to perform properly there and I sense with Sweett that they have looked at it and thought their opportunities and resources are better focused on the core UK market, and looking to develop North America. “Clearly, the bribery thing is unhelpful, and that might stand in the way of them announcing a quick disposal but we’re still waiting for further clarity on that.” Source: The National Back to Index

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EXPATS IN GULF MOST LIKELY TO BE ABLE TO AFFORD PROPERTY, HSBC STUDY SAYS

WEDNESDAY 02 DECEMBER 2015 Expats working in the Arabian Gulf are the most likely to be able to own additional property as a result of their move, according to a new study. HSBC’s annual Expat Explorer Survey found that Gulf countries offered the greatest financial incentives and a less complex environment in which to manage their wealth, giving them a greater ability to buy property. Expats in the region said that the GCC states pay the most compared to other world regions, with 76 per cent of respondents in Qatar and 72 per cent of those in Oman stating they have more disposable income since moving. The global average from 21,950 respondents in 198 countries was 57 per cent. About 30 per cent of those living in Bahrain said they were able to afford property as a result of their move, compared to 27 per cent in Saudi Arabia, 25 per cent in the UAE and Oman, and 24 per cent in Qatar. Expats in Oman (76 per cent), Qatar and Saudi Arabia (75 per cent) said they had been able to save more money since moving. The UAE figure was 61 per cent, and the global average was 52 per cent. “The GCC continues to be recognised by expats as the place that offers the greatest financial opportunities, despite the recent economic slowdown we have witnessed,” said Gifford Nakajima, head of regional wealth development at HSBC Bank Middle East. “We see that they are, in particular, highlighting the growth in their disposable income and their ability to save as factors boosting their long-term planning capabilities, which allow them to achieve their biggest aspirations, including purchasing a home.” More young (18 to 34 year old) expats in the Gulf said they were able to afford a property since moving to the region. The organiser of Dubai’s biannual Indian Property Show, Sumansa Exhibitions, said there is evidence of young, non-resident Indians based in the UAE taking more interest in buying property. It said that young people between the ages of 18 and 35 represented 43 per cent of those investing in Indian real estate. This is affecting the type of properties being sold, with budget units becoming more popular. For instance, apartments were in high demand – sought by 81 per cent of respondents. Also, 45 per cent of respondents were looking for budget properties of between 500,000 (Dh27,575) and 5 million Indian rupees. “The trend has been strengthening in the past decade,” said Sunil Jaiswal, president of Sumansa Exhibitions. “While earlier, we would see older people planning and saving to buy property, today more young people want to solidify their savings in the real estate market. There is also the fact that investing in real estate gives youth a sense of achievement, security and economic well-being.” The Indian Property Show has been running since Tuesday and finishes today.

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Source: The National

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PRESTIGIOUS LOCATION AND BRAND ADD PREMIUM TO DH4M ABU DHABI APARTMENT

THURSDAY 03 DECEMBER 2015 One million US dollars is an awful lot of money. Dr Evil in the first Austin Powers film may have been sadly out of touch when demanding that sum to ransom the world back in 1997 but in property circles the figure still represents something of a watershed. It separates ordinary housing from the sort of luxury homes many of us can only aspire to own. So what should we make of a two bedroom apartment in Abu Dhabi which has come on the market for just over that price at Dh4 million? As two bedroom flats in Abu Dhabi go, this one would certainly be a very pleasant place to live. Located on Abu Dhabi’s prestigious Saadiyat Island, it is one of just 259 apartments to make up the St Regis Residences nestled between a Gary Player-designed golf course and the beach and linked to the nearby St Regis hotel. The second floor flat in a four storey block comprises a total area of 1,548 square feet. A spacious kitchen/dining room leads to two generously sized en suite bedrooms on either side. There is a long thin balcony of another 184 sq ft outside the master bedroom and living room and another smaller balcony outside the second bedroom. And of course the flat comes with two dedicated parking spaces. But the real benefit to buying here comes with the St Regis brand. As part of the St Regis complex on Saadiyat, residents get access to the St Regis beach as well as facilities including a lap pool, leisure pool and kids pool. And, as a branded apartment, residents are also able to make use of a plethora of benefits and services linked to the luxury hotel – charged at similar rates as guests at the hotel would pay. Just by picking up the phone they can enjoy a housekeeping and maid service, laundry, 24-hour in residence dining, a personal butler, grocery shopping, massages and even an in-residence personal chef. “The fact that these apartments are branded with the St Regis name adds value,” says Almer Agmyren, managing director of selling agent Rex Real Estate. Q&A How many branded apartment developments are there? Branded apartments can be found all over the world. Brokers estimate that in Dubai alone there are around 300 branded residences with famous names including Dunhill, Ferrari and Versace. Why do branded apartments cost more? Linking a five-star hotel or global luxury brand with a residential development is about far more than being able to order room service and having top notch facilities. According to Savills, you are likely to pay 20-30 per cent more for a branded property than its bog standard equivalent.

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Why do developers build them?

Branded residences, which are usually attached to a hotel, make sense for developers. Free-standing hotels are expensive to build, with no inflow of cash until operations start, followed by a minimum of three years to reach a stable income. Branded residences make new projects more economic, since the proceeds from the sales of the flats reduce the financing requirements on the hotel development. Why do people pay a premium? For the prestige and because many international buyers like the reassurance of a big luxury name whose style and standards remain the same wherever they are in the world. More practically, these developments tend to see a similar premium for rentals and on resale, so buyers feel confident their purchase will hold its value. How much will they sell for? According to Knight Frank, luxury branded residences around the world command an average uplift of 31 per cent compared with non-branded schemes. In Cape Town that uplift is as high as 51 per cent. Source: The National Back to Index

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EMAAR JV SECURES APPROVAL FOR HO CHI MINH CITY PROJECT

THURSDAY 03 DECEMBER 2015 Dubai’s Emaar Properties and its Vietnamese partner Bitexco Group have been granted approval to build a 427-hectare project in Ho Chi Minh City. The joint venture is planning to transform an entire island surrounded by the Saigon river in the Binh Thanh district on the eastern side of Ho Chi Minh City, according to The Saigon Times. Images show that its plans include a pair of Burj Khalifa-inspired towers, a luxury resort, a marina, a recreational cove and several international hotels. The project will cost about 30.7 trillion Vietnamese Dong (Dh5 billion) to build. The approval covers a 50-year period, but the newspaper report states that construction will take place in three phases, lasting until 2030. The first, from next year until 2020, covers site clearance and engineering works. The second phase, from 2021 to 2025, involves building the island’s infrastructure and many of its main functions; and the third, from 2026 to 2030, will cover the build-out of the rest of the island. Approval was granted for the scheme on November 26. Bitexco Group started out as a textile firm but is now a conglomerate with investments in real estate, hydroelectricity plants, infrastructure, mining and mineral water. According to its website, it employs 1,100 people. Its property investments to date include The Garden Shopping Centre in Hanoi and the Icon68 shopping centre in Ho Chi Minh. It has also built The One Ho Chi Minh City – a mixed-use scheme containing 55- floor and 48-floor towers made up of offices and hotels – and it owns the Ritz-Carlton hotel in Ho Chi Minh and the JW Marriott in Hanoi. Emaar has international projects in 10 other markets including Egypt, Turkey, India and Saudi Arabia, where it is the master developer of the $100bn King Abdullah Economic City near Rabigh. Emaar said that in the first nine months of this year, it earned Dh1.7bn in international revenue, representing 18 per cent of total sales of Dh9.85bn. The property consultancy Savills said that Vietnam’s economy has had a 20-year boom between 1995 and last year, with GDP increasing ninefold to $185bn last year. Foreign direct investment in the country has almost trebled to $20.2bn. This, and increasing rates of urbanisation – to 34 per cent last year, from under 20 per cent in 1995 – has driven demand for all types of property. The ratings analyst Fitch said that Vietnam’s real GDP grew by 6.5 per cent in the first nine months of this year, up from 5.6 per cent last year, with manufacturing, construction and the services sector driving growth. Neither Emaar Properties nor Bitexco Group was available for comment.

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Source: The National

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EXPERTS WARN NEW DUBAI STATISTICS LAW COULD AFFECT TRANSPARENCY, PROPERTY SECTOR

THURSDAY 03 DECEMBER 2015 A new law that demands companies seek government approval before carrying out surveys in Dubai could damage the property sector and discourage research in the emirate, experts have warned. The Dubai government announced a law late last month intended to help enable the Dubai Statistics Center “to establish an advanced statistics system”, according to a statement. But experts zoomed in on a provision in the new law that forbids private companies from “conducting any survey[s] without obtaining authorisation from the Dubai Statistics Center”. The provisions “would strongly disincentivise many public and private sector organisations from conducting research, due to the additional time and bureaucracy that may be involved,” said Radhika Punshi, Dubai-based director of consulting at The Talent Enterprise, which studies Arabian Gulf labour markets. The pre-approval requirement would be likely to undermine the credibility of any research done in Dubai, Ms Punshi said. People “may come to view government-sanctioned research with a pinch of salt”, she added. “If Dubai wants to act on its vision of becoming an innovative, knowledge-based economy, then greater transparency, objectivity and openness to differing viewpoints in areas like education and human capital are crucial,” she said. Not all research providers see the centralisation of statistics gathering as negative. “Overall the announcement is very positive for companies like us which do provide reliable and professional data and information services, as there are lots of false and misdirecting information regarding real estate from companies who do have conflicted interests,” said Ahmet Kayhan, the chief executive of Reidin, a real estate information company. “We already work with lots of government agencies and will apply for a permission from Statistics Center as soon as possible.” However, Coralie Pring, research coordinator for corruption surveys at Transparency International, which last December ranked the UAE as the most transparent Arab nation, said that the law’s provisions were likely to make it harder for the organisation to do research in the country. “It may well happen that once prior approval is needed for research in Dubai, and if the topic is of a sensitive nature, the government may refuse to let surveys take place, in case it exposes results that may embarrass them,” Ms Pring said. “Private survey firms may refuse to even consider running such surveys,” she said. The property industry relies heavily on data provided by the private sector to determine capital values, rents and underlying demand.

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Craig Plumb, head of research at the real estate firm JLL, which publishes quarterly reports on the Dubai real estate market, said that “any reduction in transparency in the Dubai property market is a bad thing, and is likely to put off foreign investors from investing”. Mr Plumb said: “If we become caught up in a more bureaucratic process, where it takes longer to publish our findings, then these delays could be damaging to the property market.” Professor Joseph Kadane, chair of the American Statistical Association’s committee on scientific freedom, which produces reports for the United Nations on best practice in government statistics, warned that the new law would likely lead to the spread of “uninformed rumours and uncertainty about the extent of the downturn” in Dubai’s property market. “This will do far more harm to Dubai’s economy than allowing private surveys to be conducted and published,” Mr Kadane said. “International investors, in particular, are sensitive to the quality of the information available to them in deciding where to invest.” This is not the first time statistics have been in the news recently. The Damac Properties managing director Ziad El Chaar in October accused Dubai’s property brokerages of “professional malpractice” after they released estimates indicating that the Dubai real estate market was likely to be oversupplied with houses in 2016 – at a time when rents and prices were likely to fall. Instead, Mr El Chaar said he was confident that there was “a sustainable level of development across the city”. Mr El Chaar blamed the brokerages for having a “detrimental effect on the generally positive sentiment in the market” and running the risk of “turning people away from what remains a strong and well- regulated marketplace”. In August, the Dubai Land Department said that it would no longer provide quarterly updates to its Rera rent index, which is used as the basis for negotiating rent prices in the emirate. Analysts said that the change would lead to tenants paying higher rents. Neither the Dubai Statistics Center nor the Government of Dubai media office responded to requests for comment. Source: The National Back to Index

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TOP 5 COMMUNITIES FOR TENANTS IN DUBAI

TUESDAY 01 DECEMBER 2015 Rise in working population in Dubai is keeping rentals steady or even leading to an increase in some areas. “While prices adjust to inflationary gains in the past, there has been no stopping the upward growth of Dubai’s rental segment. This has primarily been a result of a rise in working population that is demanding rental units by the hundreds,” Bayut.com, a real estate portal, said in a statement sent to Emirates 24/7. The top five localities, it said, for renters were Dubai Marina, Jumeirah Lakes Towers (JLT), Bur Dubai, Downtown Dubai and Dubai Silicon Oasis. Though Discovery Gardens and International City could not make it to the top five localities, they did register increases in search hits of 73 per cent and 71 per cent, respectively, in October compared to September. In November 2015, Movesouq.com, a comparison site for moving and storage companies, put Dubai Marina (includes Jumeirah Beach Residence), Jumeirah Village, Downtown Dubai and DIFC Area, Dubailand and Emirates Hills (includes Lakes, Meadows and Springs) as the most sought after areas for renters. According to Bayut, Dubai Marina registered an increase of 58 per cent in search hits followed by JLT and Bur Dubai with 55 per cent and 53 per cent increase in search hits, respectively. Downtown Dubai took the fourth spot with a 47 per cent increase with Silicon Oasis securing the fifth place with a 69 per cent growth. The report said that overall average rental yields remained 5.5 per cent in October. Apartment rents posted a month-on-month (mom) growth of 1.07 per cent. Studio apartments fetched an average price of Dh850,000 and an average annual rent of Dh62,000 (0.785 per cent mom increase). Average yields was 7.3 per cent. Average price of one-bed apartments stood at Dh1.5 million as rents fell 1.79 per cent mom. Average annual rent was Dh101,000, while yields were 6.5 per cent. Two-bed apartments fetched an average price of Dh2.7 million, while average rents remained at Dh160,000, rising 1.92 per cent in October. Yield of the two-bed units were 5.8 per cent. The report also revealed the top five areas most searched areas for buying. Dubai Marina, Jumeirah Lakes Towers (JLT), Downtown Dubai, Dubai Sports City (DSC) and Jumeirah Beach Residence (JBR) made it to the list. “Now that the exaggerated news of (25,000) unit oversupply in Dubai’s market put to rest for good, developers are sure to get focused on finishing off projects at hand. Investors who watched the action from the side-lines for months will likely be encouraged to test the realty waters,” Bayut.com said. Source: The National Back to Index

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2 -BED SERVICED APARTMENTS IN ABU DHABI FOR UNDER DH150,000

FRIDAY 27 NOVEMBER 2015 A new property in downtown Abu Dhabi has introduced a lucrative offer for its two-bedroom apartments as part of its inaugural promotion. In a media statement, the recently opened Jannah Place Abu Dhabi said it is currently leasing new, two- bedroom serviced apartments in the heart of downtown Abu Dhabi for a special price of Dh145,000 per year. The promotional price is valid until end of this year, Jannah Hotels and Resorts confirmed to Emirates 24|7. Hotels in the UAE have been under pressure for a while now, with growing supply outstripping a slowing demand from certain parts of the world. A mismatch in hotel supply growth and demand growth has resulted in occupancy declining although only modestly. In a statement, the Jannah Palace said that the new apartments feature up to 100 square metres of space, and each bedroom comes with an en-suite bathroom (furnished with free Jannah bath amenities), fully-equipped kitchen (refrigerator, microwave and washing machine), and complimentary high-speed wireless Internet access. In addition, spa beds are available in king size in the master bedroom and as twin beds in the second bedroom. “At Jannah, our top priority is the comfort of our guests. We’ve given special attention to our bedding to ensure that they get the best sleep in our rooms,” says Richard Haddad, Vice President Operations for Jannah Hotels & Resorts. In addition, Jannah’s 24-hour concierge/butler service Karim includes general assistance, like wake-up calls to arranging for medical pillows and babysitting service as well as professional medical assistance. Some of Karim’s services are paid, the hotel said. Source: The National Back to Index

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DUBAI WILL BE HOME TO TWO REPLICAS OF PARIS EIFFEL TOWER

FRIDAY 27 NOVEMBER 2015 Dubai has already announced a mini world park and a mega development that will be home to the wonders of the world. Now, an Indian state is working on building the replica of iconic structures. In fact, the West Bengal state government is constructing a scale model of the Eiffel Tower near Kolkata as a tribute to the victims of the recent Paris attacks. The Indian Express newspaper has reported that the tower will be 55-metres high, which is about six times smaller than the iconic 324-metre structure in Paris. The foundation stone for the project, to be built by the Housing Infrastructure Development Corporation (HIDCO), will be laid on November 28 at Eco Park. The tower replica is going to be a part of the “Seven Wonders of the World” theme-park and will have Taj Mahal from India, Christ the Redeemer from Brazil, Chichen Itza from Mexico, the Great Wall of China, Petra in Jordan, Machu Picchu in Peru and the Colosseum in Rome had been chosen. The replica will have two tiers where tourists can climb up to the observation room, at a height of 25 meters from the ground with an estimated 300 tonnes of steel being utilised for construction, the newspaper said. Dubai announced a mega project called Falcon City of Wonders, which will feature structures based on the wonders of the world, such as the Eiffel Tower, the Pyramids, the Hanging Gardens of Babylon, the Eiffel Tower, the Taj Mahal, the Great Wall of China, the Leaning Tower of Pisa and the Light House of Alexandria. In April 2015, Emirates 24|7 reported that Dubai Municipality will commence work on a ‘Mini World Park’, designed to showcase replicas of famous monuments from all over the world, after it finalises its location. The park is the first of its kind in the Arab world and will display monuments such as Burj Khalifa, Burj Al Arab, Paris’ Eiffel Tower, New York's Empire State Building, the Canton Tower in China, Toronto's CN Tower, and Petronas Tower in Malaysia and the Swiss Re Tower in the City of London. Source: The National Back to Index

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NEW LUXURY DUBAI HOTEL OPENS, TO UNVEIL BENTLEY SUITE IN EARLY 2016

SATURDAY 05 DECEMBER 2015 The luxury Bentley Suite at The St Regis Dubai will be unveiled in early 2016, it has announced as the hotel brand made its debut in the emirate. St Regis Hotels & Resorts announced the opening of The St Regis Dubai, owned by Al Habtoor Group, which also features eight culinary venues, the first Iridium Spa in Dubai, and a fleet of Bentleys. The hotel's one-bedroom Bentley Suite, inspired by the bespoke craftsmanship of the Bentley Mulsanne, is the first of its kind in the Middle East, a statement said. "Offering the ultimate expression of luxury, the leather finishes, colours, patterns and wood veneers combine the glamour of Bentley with the impeccable elegance of the St Regis brand," the statement added. Advertisement The St Regis Dubai is located within the Al Habtoor City, which will eventually feature two other Starwood hotels under the W Hotels and Westin brands, three residential towers, and a water-themed show by Dragone. "We are proud to partner with Al Habtoor Group and to launch Starwood's largest hospitality project in the region as we open the first of three hotels in this prestigious development," said Michael Wale, president, Starwood Hotels & Resorts, Europe, Africa and Middle East. "The entry of our ultra-luxury St Regis brand in this important market strengthens Starwood's presence in the United Arab Emirates as we remain on track to double our portfolio in the region by 2019." The St Regis Dubai features 234 guestrooms, and 52 suites including the three-bedroom, two-storey Royal Suite which has a rooftop plunge pool, living room, dining room, study, lounge area and majlis. Source: Arabian Business Back to Index

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SHEIKH MOHAMMED ISSUES NEW LAWS TO DRIVE DUBAI SMART CITY BID

SATURDAY 05 DECEMBER 2015 Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued a number of new laws to drive the emirate's plan to become the world's smartest city. The new laws aim to enhance the progress of the Smart City initiative and encourage innovation by fostering collaboration between the public and private sectors, news agency WAM reported. Sheikh Mohammed was quoted as saying: "Today we have completed the organisational structure and legal framework for transforming Dubai into the world’s smartest city and creating a new and unique model in developing and managing cities. "Managing global cities requires sustained efforts to provide fast and innovative services. We must utilise modern technology and available resources to achieve our objectives." Advertisement He called on all of Dubai Government’s entities and departments to work together to transform Dubai into the smartest city in the world. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and chairman of the Dubai Executive Council, said that the Dubai Government is implementing the directives following the launch of the Dubai Smart City strategy two years ago. He added that Sheikh Mohammed is keen to engage both the public and private sectors to introduce a state of the art infrastructure that integrates the city’s management systems. The new laws include the establishment of Dubai Smart City Office and the formation of the Board of the Dubai Smart City Office including the appointment of a director general and deputy director general. Under the law, the Dubai Smart City Office will develop overall policies and strategic plans, supervise the smart transformation process and approve joint initiatives, projects and services. The law authorises the Dubai Smart City Office to enter into partnerships with any organisation within and outside the emirate to implement best practices in the field, approve relevant plans and budgets. All government entities are required to cooperate with the new body to carry out its responsibilities under the Smart City strategy, WAM added. Source: Arabian Business Back to Index

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DARING TO BE DIFFERENT: DANUBE'S RIZWAN SAJAN

SATURDAY 05 DECEMBER 2015 It has guided him well throughout his career. From the time he landed in Dubai in the early 1990s, Sajan has been constructing his own building empire — Danube Group — brick by brick. Turnover in his first year as a building materials supplier with Danube was $2.2m. This year, turnover is expected to be somewhere in the region of $760m (AED2.8bn), up an estimated “10-15 percent” compared to last year. And so, when the chairman talks about Dubai, its future and the current state of the property market — all of which hold the key to his success —Sajan remains steadfastly confident, unwavered by any trends or statistics that might indicate that it’s not quite as good as some may think. Advertisement “Very bullish,” is his immediate assessment of the property market. “Okay, the market will go up and down, but so far I am bullish. I have always been very bullish from the beginning. People have a problem of crying in this market. For no reason they just want to make it negative. At the end of the day, if you open the newspaper you see ‘so-and-so bank’ makes extra money, and ‘so-and-so company’ makes extra money, what are you crying for? Be happy about it.” One of the more cautionary reports to be released lately was Phidar Advisory’s Q3 Dubai residential research note which said Dubai’s property market has reached a “saturation point”, where supply is currently growing at an average rate of 3.9 percent, outpacing demand at 3.7 percent. Sajan, however, is unconvinced, and says it’s important to consider the bigger picture. “Markets always goes up and down, according to various factors in the region, [like] oil prices and sentiment in the market, but what I see is a simple supply and demand situation. I am expecting growth of at least 1.5 million people in the next five years, before Expo 2020, out of which I would say 40 percent will be white-collar workers, about 600,000. For that amount, you require 150,000 apartments, considering one multiplied by four — parents and two children. “So you’re talking about 30,000 apartments required in the market for next five years. The delivery builds that are there in the market are not more than 18,000 to 20,000 apartments. So where is the question of saturation?” And he’s speaking from experience, quoting the strong rental market experienced by his own property portfolio, which runs into the hundreds. “If the demand and supply are what people are quoting, the rentals would have gone down. It is proving that way year after year in the rental market. They are going up, not going down. Maybe one or two percent in some areas, but in the last three years the rentals have gone up by 40 percent to 50 percent,” he says. “I have bought more than a couple hundred apartments that I have put on rental. Not a single apartment is available for rent more than a day. As soon as somebody has vacated, within a day someone else is picking it up. If there was no demand, the apartment would be vacant for longer.”

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Sajan also gives the example of the demand for his own developments. Just over two years ago, he launched Dreamz by Danube, a collection of 171 townhouses. The $135m (AED500m) development in Al Furja n sold out within three hours at the sales launch event. Buoyed by his first foray into the property market, he launched the first and second phase of Glitz by Danube in Dubai Studio City at start of 2014, both of which sold out within the first two hours. The latest phase, Glitz 3, was launched in June this year, but hasn’t been as successful, with 10 percent still left unsold. Sajan, who has a policy of only having one project to sell at any one time, remains confident that Glitz 3 is a blip. “The market sentiment slowed down. Okay, it look a little longer to sell, but we’re still much better off than the other developers who are still not able to sell. I cannot name any, but there are many developers who are not able to sell 10-20 percent of their development, whereas I’m very happy that 90 percent is gone,” he says. The biggest percentage of buyers are first-time investors, looking to “settle down and have their own house”, he says. Affordability has been an important factor for his buyers. “Seventy to 80 percent of expats who live in this part of the world are staying in rented apartments and they are my target market,” he says. “The rental is approximately 10 percent of the investment you are making. If you are buying an apartment worth AED1m, the rental is approximately AED100,000 per year for that apartment. So in ten years you are recovering your money and with this payment plan that I am offering, you are not even paying any interest on that,” he adds. Sajan says there is always an exit policy, and people will be able to get back whatever money they have invested in his properties. “With the Expo 2020 coming in the near future, the prices are going to go up. That’s 100 percent my sure gut feeling on that,” he says. That ‘one project’ policy is going to be tested somewhat in the coming days, if he’s not able to sell the remaining 10 percent in Glitz 3 before he launches his latest project, again in the Al Furjan area, behind Ibn Battuta Mall. The 14-storey project will feature an apartment that Sajan says will be a ‘first’ for Dubai. “In Danube, we always believe that we do something different from the market and that’s one of the reasons for our success. In our first project, we came out with very affordable townhouses. After that, people followed and sold more townhouses [in other projects] but we were the first ones to bring in AED2.5m townhouses, which were not available in the market [at the time]. Then we came out with the apartments, which had a 1 percent payment plan, which nobody else was doing,” he says. “Now we’re coming with a very unique apartment where you pay for one bedroom, and you get the space of two bedrooms.” The apartment will have one bedroom, while the living room will come with a cabinet that becomes a bed recessed into the wall. Popular in Europe and the US, Sajan says a discreet collapsible or sliding door will allow it to be closed off at night for privacy. “You don’t have to invest in a two-bedroom if you don’t have the budget,” he declares. “You invest in one-bedroom and live like you’re living in a two-bedroom, by just putting the cabinet up or down.” The one bed apartments, priced at “less than AED750,000”, will come fully furnished in the 500- apartment development that will be similar to the Glitz project. He says the project will also have the Dubai Metro extension running close by, which will be up and running by the time it’s finished.

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Planning ahead, Sajan says he’s currently looking at acquiring more land for development, possibly in Al Furjan, or Arjan, close to Dubai Miracle Garden.

“I’m seriously thinking of buying more land because I know that this scheme that I am doing will sell out, so I don’t want to wait another six months. We are thinking of buying more land and keeping it. We will not develop the project, but we will keep the land ready, and keep the plans ready. As soon as we sell this, we will put that plan into action,” he says. The building materials side of the business, where it all started for Danube, is “very good”, he says, adding that he expects the 10 percent growth there will continue for a number of years to come. “Projects that were announced after Expo 2020 are still going very actively, so we are able to supply the raw material,” he says. Interestingly, he reveals that he expects some significant announcements during the coming months that will keep Danube supplying Dubai’s remarkable growth story. “I think the government has planned out some good infrastructure projects for Expo 2020, which will be rolled out within the next two or three months, when you will see lots of new projects coming out. So my gut feeling is that we will be busy for another three or four years without any problems,” he says. Danube Home has been expanding rapidly in the last few months, with new showrooms in Riyadh, Oman, Sharjah and a significant $13.5m flagship store on Sheikh Zayed Road due to open soon. Sajan says he has developed a franchise model for “only where we are not present” to grow Danube Home even further. “We’re looking at franchising opportunities in India and also in Africa and ones where were are not present,” he says. Two have been finalised in India, with others also completed in Africa and Seychelles, but he insists the partner has to be right, and willing to put in the work. “A lot of people today have the money, but they don’t want to work. They just want to invest and think that the business is just going to work. We don’t want people like that,” he says. “We have to have a person who has the expertise of some retail background, then he knows how to run it. I can set it up for him but he has to finally run it.” The franchising model is the only way he intends to operate in Africa, following the disappointment of having to close down its operation in Kenya. “It’s not doing that well for us. The security isn’t good and my staff are not willing to go there. Every now and then they say there’s a problem. There was one fellow kidnapped and after that everybody got scared to go there. And then we said to ourselves that the business is not very big, why take the headache — close it down,” he says. Confidence also remains an issue with regard to any plans Danube had for Egypt, but Iran is a country that does interest Sajan, where he says the franchise model will be used to open a store. Another area of growth for Danube is development of a production facility for Alucopanel USA’s range of composite cladding panels in Dubai TechnoPark last year. He says it is already investing in the second line, “which should be ready by March or April”. “The first line is completely sown up so the company made a strategic decision that we need a second line,” he says. “We were already buying and selling the product to other distributors, so we had our own market for it. We built our own plant and we are selling more and more.” One of the more intriguing offshoots for the group has been Danube Fashion, a men’s fashion collection started by his son, Adel, importing a franchise from Turkey.

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“We have already opened two shops, one in Sharjah and other at City Centre Carrefour in Shindagha. We are finalising three more locations,” he says, agreeing that it’s a more of a ‘tester’ to see what the market is like. “Absolutely, and then probably we might go into it on our own brand,” he says. Danube also diversified into retail with tea and snacks outlets Cha Chai, with eight outlets currently across Dubai and Sharjah, and plans for more. Sajan has, however, ruled out a move into the hotel sector, for now. “Not yet. You never know,” he says. “If I find the right person who can manage it for me, I will invest in it. But I always believe in doing something different compared to what everybody else does. So if I have to come up with a hotel, it will be something different. That thing has to click in mind that says ‘yes, this is different’, then I will put my money in. I wouldn’t just open a hotel and follow what everybody is doing.” Sajan does have another sector lined up, but with some details yet to be finalised, he’s not ready yet to reveal any details. “I am thinking [of] one more business, which I will announce once I know that it’s 100 percent on the cards. I will call you again for that,” he quips, with a hearty laugh. He expects it will be announced before the end of the year, or early next year, and confirms that it’s linked to his current business. “Yes, something close, but on a big scale, not small. In Dubai.” No doubt it will be something different. It has to be from Rizwan Sajan. Source: Arabian Business Back to Index

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VALUATION & ADVISORY With 30 years of Middle East experience, Our professional advisory services are conducted by suitably qualified personnel all of whom have Asteco’s Valuation & Advisory Services had extensive real estate experience within the team brings together a group of the Gulf’s Middle East and internationally. leading real estate experts. Our valuations are carried out in accordance with the Royal Institution of Chartered Surveyors Asteco’s network of offices in Abu Dhabi, Al Ain, Dubai, Northern Emirates, Qatar, Jordan and the (RICS) and International Valuation Standards Kingdom of Saudi Arabia not only provides a deep (IVS) and are undertaken by appropriately understanding of the local markets but also enables qualified valuers with extensive local experience. us to undertake large instructions where we can quickly apply resources to meet clients requirements. The Professional Services Asteco conducts Our breadth of experience across all the main throughout the region include: property sectors is underpinned by our sales, leasing and investment teams transacting in the market and • Consultancy and Advisory Services a wealth of research that supports our decision • Market Research making. • Valuation Services John Allen BSc MRICS

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