Company asserts commitment to go ahead with construction of all launched projects worth AED 1.34 billion

March 08, 2010

Amidst expectations that the UAE’s economy will rise by 3.2 per cent in 2010, Shaikhani Group, a multibillion dollar international business conglomerate with interests in real estate development, trading, manufacturing and IT, has predicted that the country’s real estate market is poised for demand-supply balance this year. A representative from the company referred to recent data released by Proleads and added that despite the cancellation of 566 projects in the UAE, a total of 806 properties currently under construction are expected to be delivered soon, and this will help attain stability in the property sector. Amidst all this, the Group is assuring its investors of its commitment to go ahead with construction of all its launched projects, which have a collective value of AED 1.34 billion. 

With transparency as its utmost priority, Shaikhani Group has reported that construction on its ‘Champions Towers I’ (CTI), ‘Champions Towers II’ (CT II) and ‘Champions Towers III’ (CT III) projects is witnessing continuous progress. The leading property developer reported that it has already 14 levels of CTI, 8 out of 13 floors and 7 out of 15 floors for CT II and CT III respectively. Furthermore, it has also completed nine out of the ten levels within ‘Cambridge Business Centre’ (CBC) project, its inaugural commercial venture located in Dubai Silicon Oasis. The company also previously announced that it is fast-tracking the construction of ‘Gardenia I & II’ and ‘Frankfurt Sports Tower I’, and has awarded various important contracts to a number of top contractors.

”Amidst the challenges of the current crisis, it is important to take a step back and a closer look at the big picture, identify the opportunities to make out the best route towards recovery,” said Abu Baker Shaikhani, Chairman, Shaikhani Group. “We are confident that the Dubai Government is taking all the necessary efforts to drive back the real estate sector to its level in the past couple of years, and we are continuing our efforts to complete our projects within their specified timeframe, in line with our commitment to our investors.”

As part of its rebranding initiative, Shaikhani Group has unveiled its flagship subsidiary company – Shaikhani Developments, which offers a range of services within real estate development, construction and project management, including residential, commercial, and mixed use projects within the UAE. Fully-equipped to build high-rise structures, mixed-use developments, residential projects, manufacturing units, hotels, retail facilities and other commercial projects, the newly launched development arm also offers an extensive portfolio of services, which covers all aspects of construction and building from start to handover.

“Our recent rebranding reverberates our renewed strategy for growth, which now involves a more proactive approach to building processes, creating partnerships and providing services while remaining focused on timely delivery and topnotch quality. We are confident the coming year will be better for investors, us as an organisation and the property industry in general,” concluded Shaikhani. 

More project management expertise needed for trillion-dollar MENA projects

More project management (PM) expertise is needed to sustain trillion-dollar project-driven developments across the MENA region. The Middle East’s thriving construction sector alone is expected to post an annual growth rate of 3.5 per cent over the next five years to place ahead of Europe and North America and third behind Asia. The Gulf in particular has around USD 1.35 trillion worth of active civil building projects requiring the latest PM technologies and techniques.

Collaboration, Management and Control Solutions (CMCS), a leading Portfolio Project Management (PPM) firm in the Middle East, has launched an educational campaign to train businesses and individuals from across the region on advanced tools and skills to meet demand for world-class PM capabilities. The company is the first organization to be authorized by Oracle University, the global educational arm of enterprise software company Oracle Corp., to deliver certified Oracle Primavera training programs in the Middle East. The company will commence its regional tour in Doha, Qatar on February 28, 2010 at the W Doha Hotel along with local partner Nasser Bin Nawaf & Partners Holdings, part of the NBK Group. The campaign will cover Egypt, Abu Dhabi, Kuwait, Dubai, the KSA, Jordan and Oman throughout the year.

“As one of the world’s most project-driven markets, the MENA region has to ensure that it has access to the best PM tools to maintain its competitive edge. Through our educational campaign we aim to enhance PM competency throughout the region, particularly when it comes to PPM. While PM methods are used to properly manage projects, PPM enables organizations to select the right projects, which is a very critical activity given today’s tight markets. We want to promote these two concepts so that the region can excel in both project selection and execution,” said Bassam Samman, CEO and Founder, CMCS.
 
During its year-long campaign, CMCS will emphasize the importance of solutions from Oracle Primavera, Synchro Ltd. and EarthCam, the premier international network of live public access webcams, in optimizing PM in general and PPM in particular. The company has been engaging in similar education-oriented initiatives, such as its recent signing of a Memorandum of Agreement with American University of Sharjah (AUS) to train AUS students and alumni on Primavera software and its applications.

Collaboration, Management and Control Solutions has been connected with Oracle Primavera for more than 25 years and led the major PM markets of China and Australia as the biggest Primavera partner in the world in 2007 and 2008. CMCS has received 49 Performance Awards and Recognitions from Oracle Primavera and is recognized as the Middle East’s leading project portfolio management service provider. The company maintains partnerships with more than 1,400 clients representing various industries ranging from Engineering and Construction to education and Information and Communications Technology.

Realty Capital Middle East FZ LLC has announced that it has recently competed the concrete casting of the 30th floor slab of its centerpiece i-Rise office tower project in TECOM site C. This marks an important milestone as one of the largest office tower developments in the region draws near to its completion date expected in November 2010.

I-Rise office tower, being developed by Realty Capital, is 36 floors high and contains corporate and executive offices as well as retail space on the ground floor with an approximate total built-up-area of 1.9 million square feet. The tower will have 19 high speed elevators and 2,300 parking spaces.

All electromechanical works of i-Rise are now being completed through the lower levels up to 27th floor. The contractor has also started placing aluminum cladding on the external facade up to the 25th floor. Fit-out works are also well in progress.

Marwan Mansour, the CEO of Realty Capital, said: “Being one of the region’s most iconic projects, there has been a growing sense of excitement and pride as we draw nearer to the completion of i-Rise. Realty Capital has worked really hard with the contractors to ensure that the project stay on track despite the challenges that have been experienced in the region and across the world. When we started this project, we vowed to protect the interest of all investors and stakeholders one of Dubai’s most prestigious business towers”.

Unique sand dune-themed commercial & residential towers are key elements of exhibition & lifestyle micro-city

February 20, 2010: Work on the two SinoGulf Investments towers within ADNEC’s AED 8 billion Capital Centre master development is picking up speed, with the construction of the commercial-use “International Tower” progressing at a rate of one floor every 11 days. The residential tower is also making steady progress with excavation and piling already complete.

The two towers are being built at a cost of circa AED 700 million and are designed to mimic the movement of sand dunes. The unique architectural concept was created by the Architects’ Journal’s “International Practice of the Year 2009” winner, Woods Bagot.

Simon Horgan, ADNEC Group CEO said: “We are very pleased to note the progress of SinoGulf’s two developments. The towers reflect our commitment to integrating high-quality facilities into our Capital Centre micro-city. Their distinctive design also extends the development’s lineup of eye-catching buildings, such as the gravity defying Capital Gate tower and the world class Abu Dhabi National Exhibition Centre. We fully expect these buildings to attract the kind of commercial and residential tenants which will help Capital Centre thrive.”

“There is incredible pressure among businesses to distinguish themselves amidst today’s highly-competitive environments. Capital Centre gives us a unique presence within one of the region’s most promising markets. Our towers will definitely boost our appeal as an investment partner while contributing to Capital Centre’s emphasis on novelty and world-class elements,” added Greg Kimpton, Head of Development Management, SinoGulf Real Estate Investments.

SinoGulf’s Grade “A” environmentally-sensitive commercial tower will incorporate high-end quality finishes, high-speed passenger lifts with 24-hour security; 41,000 sqm of net lettable area with panoramic views; and secure parking bays. The tower which is due for full completion in 2011 will comprise 25 levels (plus two podium levels), while the residential tower will be a 20 level, (plus two podium levels) structure. Both are strategically located on the corner of Al Karama Street adjacent to the Abu Dhabi National Exhibition Centre, with easy access to nearby commercial, hospitality, entertainment, transport, and residential facilities.

ADNEC’s Capital Centre is designed as an integrated exhibition-lifestyle destination, comprising 23 towers mixed use towers, 7 hotels and 1 world class exhibition centre – The Abu Dhabi National Exhibition Centre. The development is complemented by another two hotels, Aloft Abu Dhabi, which opened in October 2009, and Hyatt at Capital Centre which will be located within the gravity defying Capital Gate tower.  Additionally, Capital Centre features a 20,000sqm Marina Zone.

• Full-year gross revenues reach AED 1.835 billion, up 33 per cent compared to AED 1.382 billion in 2008 (restated as per IFRIC 15)
• Change in revenue recognition in compliance with IFRIC 15; 2009 revenue recognition based on completed contract method
• Operational cash flow remains positive; property management and leasing income stable and profitable
• Eight projects handed over in 2009; six projects slated for handover in 2010

Dubai, February 16, 2010: Deyaar Development PJSC, a regional real estate company dedicated to innovation, customer care and long-term sustainability, announced today its financial results for the 12 months ending December 31, 2009.

Despite extremely challenging conditions globally, which have impacted the performance of the real economy worldwide and the property sector in particular, Deyaar continues to focus on its unique consolidation strategy, which has led to a reduced level of defaults and a higher paid-up value for each of the company’s sold and consolidated units. As a consequence, Deyaar has been able to reduce its level of provisioning related to receivables, leading to a continuously positive operational cash flow.

In line with global best practice, Deyaar has adopted a revenue recognition policy based on the recommendations of the International Accounting Standard Board (IASB) relating to the International Financial Reporting Interpretations Committee (IFRIC) 15 - Agreements for the Construction of Real Estate, to recognise revenue based on the completed contract method.

In the case of the completed contract method of revenue recognition, the revenue and related profit for a project sold are recognised when the project is handed over to customers.

Based on IFRIC 15 revenue recognition policy, the company’s gross revenues for the 12 months ending December 31, 2009, stood at AED 1.835 billion, an increase of 33 per cent compared to AED 1.382 billion in 2008 (restated as per IFRIC 15). The reported gross revenues of the company for 2008 (as per the percentage of completion methodology) was AED 2.956 billion.

Based on IFRIC 15 revenue recognition policy, Deyaar reported today a net profit of AED 30 million for the 12 months ending December 31, 2009, a decline of 95 per cent compared to AED 654.7 million in 2008 (restated as per IFRIC 15).

Based on company projects handed over in 2009, Deyaar’s total net profit before impairments and provisions and including pre-IPO profits reached AED 337 million. Of this, AED 207 million were profits attributable to the pre-IPO period and AED 100 million were for provisions and impairments. After the above adjustments, the company’s residual net profit for 2009 stands at AED 30 million. The net income reported for 2008 (following the percentage of completion methodology) was AED 1.104 billion.

The total equity of the company stands at AED 6.75 billion as at December 31, 2009.

“In the face of unprecedented threats to the stability of the global financial system, the worldwide real estate sector witnessed a range of significant challenges in 2009,” said Markus Giebel, Chief Executive Officer of Deyaar. “Despite such volatile conditions, Deyaar successfully handed over eight projects last year, including an AED 363 million project in Lebanon.

“In 2010, Deyaar will continue to focus on the completion of the consolidation of its projects and timely collections of its receivables at home in the UAE, while simultaneously identifying strategic expansion opportunities overseas, including potential future opportunities in regional markets such as Lebanon and Saudi Arabia,” he said.

 “With six projects slated for handover this year and the ongoing completion of income-generating assets, in parallel to the continued stablisation of regional and international markets, we look forward to reporting continuous stable cash flows in 2010.

“Deyaar’s sound fundamentals and prudent operational strategy, including generating stable income from property management and leasing activities, places the company in a prime position to benefit from the global recovery. Moving ahead, we will continue to focus on providing innovative solutions that meet the evolving needs of our customers,” said Giebel.

BUDGET VALUE OF REGIONAL BUILDING PROJECTS (PLANNED AND UNDERWAY) IN GCC IS ESTIMATED AT US$2.1 TRILLION*

Hardware + Tools Middle East 2010 will take place at Dubai Interna-tional Convention and Exhibitions Center, UAE, from May 18 to 20.  The show which has been running for over a decade is the region’s only dedicated trade exhibition for tools, hardware, materials and ma-chinery and as such is a must attend event for industry professionals in the Middle East. 

According to data from Dubai-based research firms projects register-ing a total value of around US $900 billion are under construction or in bidding in the UAE.  The UAE’s construction industry is still leading the GCC by thrice the number of ongoing projects.  Saudi Arabia and Qatar also have strategic infrastructure projects planned.

“Figures from an independent research company have revealed that nearly 2,000 buildings were completed in Dubai in the first three quar-ters of 2009 proving resilience in the market despite the more difficult economic times.  While there is no denying that there has been a slow down in planned development, projects already underway are being completed and there are still  more in the pipeline,” said Mr. Ahmed Pauwels, Chief Executive Officer, Epoc Messe Frankfurt GmbH.

He added: “This recent news in the industry, and the fact that there is US$2.1 trillion of building projects planned or in underway augurs well for Hardware + Tools Middle East and already we have seen interest from key players in the region.  We have added some great show fea-tures such as live demo areas for the next edition and are confident that Hardware + Tools Middle East 2010 will be a significant event in industry professionals’ annual events calendar.“

Show organisers Epoc Messe Frankfurt expect over 350 exhibitors occupying 8,000 square metres and 6,500 visitors at this year’s edi-tion.   The live demo area will provide exhibitors with the opportunity to display their products or services in a more interactive environ-ment.

82% of exhibitors from Hardware + Tools Middle East 2009 intend to exhibit again this year (2010) and 69% of last year’s visitors stated they intended to make a purchase directly at the show or in the near future. 

Dubai has established itself as the central logistics and trading hub for the Middle East region due to its simple import and re-export pro-cedures.  Hardware + Tools Middle East showcases a range of brands and products across all industries related to tools, hardware and machinery and as such is a must attend event for industry pro-fessionals. 

TASWEEK Real Estate Development & Marketing to discuss investment & development opportunities in 2010 at Cityscape Connect

February 15, 2010

Real estate experts will discuss the potential role of Abu Dhabi in spurring a national and regional industry rally during the Cityscape Connect Abu Dhabi Business Breakfast scheduled for February 16, 2010 at the Radisson Blu hotel in Yas Island, Abu Dhabi.

Organized as a precursor to Cityscape Abu Dhabi, an international real estate investment and development event slated for April 18 to 21, 2010 at the Abu Dhabi National Exhibition Centre, Cityscape Connect starts a series of ‘not for profit’ activities aimed at stimulating discussions on key issues affecting the real estate industry. Masood Al Awar, CEO of TASWEEK Real Estate Development and Marketing, will deliver a speech on current industry trends, new investment and development opportunities in 2010 and beyond, and Abu Dhabi’s steadily growing property sector.

Other prominent industry speakers include Heather Wipperman Amiji, CEO of Investment Botique LLC; Tara Marlow, Head of Property and Hospitality - Abu Dhabi, Al Tamimi & Company; and Gurjit Singh, COO of Sorouh Real Estate PJSC.

“The potential for population growth and job creation along with steady demand make Abu Dhabi a good destination for medium- to long-term property investments. It is very important that we as industry members periodically come together and assess where we are, how we are doing, and what we plan to do in the future within this promising market. Cityscape Abu Dhabi is a very important event for our trade so it’s essential that we prepare ourselves through activities such as Cityscape Connect so that we can maximize the opportunities that the show and the whole of 2010 will offer,” said Al Awar.

Topics to be discussed during Cityscape Connect include a market overview and economic outlook for Abu Dhabi; its foreign direct investment advantages; the local economic diversification programme; the impact of the crisis on the local market; the Abu Dhabi 2030 plan; and investment and development prospects. The breakfast meeting will be followed by future functions such as cocktail receptions and golf tournaments which will offer light-hearted and yet valuable platforms for networking, exchanging information and understanding changing market dynamics.

Abu Dhabi’s property sector is well-positioned to lead a regional recovery. High-profile developments such as Yas Island tie up well with other emerging growth sectors such as special events and tourism. Local projects have been planned and paced well, and the emirate’s solid financial resources make for a good investment environment. TASWEEK, an advisor and solutions provider serving the Middle East real estate markets, is currently eyeing strategic location properties in Reem Island, Al Raha Beach, and Building Material City in Abu Dhabi as part of a new multi-million dollar property portfolio that will generate a return on investment of at least 10 per cent.

TASWEEK Real Estate Development and Marketing is emerging as a one-stop shop for real estate and related services and marketing. Its products and services are tailored to specific customer needs and current market conditions. TASWEEK’s expertise covers Purchase and Sale of Strategic Assets Acquisitions; Asset Management; Joint Ventures and Strategic Alliances; and Marketing Consultancy. The company operates on the core competencies of networking and professionalism.

BUDGET VALUE OF BUILDING PROJECTS (PLANNED AND UNDERWAY) IN GCC IS ESTIMATED AT US$2.1 TRILLION*

Hardware + Tools Middle East 2010 will take place at Dubai Interna-tional Convention and Exhibitions Center, UAE, from May 18 to 20.  The show which has been running for over a decade is the region’s only dedicated trade exhibition for tools, hardware, materials and ma-chinery and as such is a must attend event for industry professionals in the Middle East. 

According to data from Dubai-based research firms projects register-ing a total value of around US $900 billion are under construction or in bidding in the UAE.  The UAE’s construction industry is still leading the GCC by thrice the number of ongoing projects.  Saudi Arabia and Qatar also have strategic infrastructure projects planned.

“Figures from an independent research company have revealed that nearly 2,000 buildings were completed in Dubai in the first three quar-ters of 2009 proving resilience in the market despite the more difficult economic times.  While there is no denying that there has been a slow down in planned development, projects already underway are being completed and there are still  more in the pipeline,” said Mr. Ahmed Pauwels, Chief Executive Officer, Epoc Messe Frankfurt GmbH.

He added: “This recent news in the industry, and the fact that there is US$2.1 trillion of building projects planned or in underway augurs well for Hardware + Tools Middle East and already we have seen interest from key players in the region.  We have added some great show fea-tures such as live demo areas for the next edition and are confident that Hardware + Tools Middle East 2010 will be a significant event in industry professionals’ annual events calendar.“

Show organisers Epoc Messe Frankfurt expect over 350 exhibitors occupying 8,000 square metres and 6,500 visitors at this year’s edi-tion.   The live demo area will provide exhibitors with the opportunity to display their products or services in a more interactive environ-ment.

82% of exhibitors from Hardware + Tools Middle East 2009 intend to exhibit again this year (2010) and 69% of last year’s visitors stated they intended to make a purchase directly at the show or in the near future. 

Dubai has established itself as the central logistics and trading hub for the Middle East region due to its simple import and re-export pro-cedures.  Hardware + Tools Middle East showcases a range of brands and products across all industries related to tools, hardware and machinery and as such is a must attend event for industry pro-fessionals. 

• Swiss Development Group is redeveloping 24 luxury private hotel residences
• Innovative facilities and world-class design by BBGM and EDSA
• Located in one of Europe’s most popular tourist destinations

Dubai, UAE; February 14, 2010: Hamptons International, the premier property services company with a global portfolio of prestigious projects, has entered the Switzerland market with a property marketing contract for the prestigious Du Parc Kempinski Private Residences developed by Swiss Development Company (SDC).

Located in the picturesque hills of Mont-Perelin, one of Switzerland’s most frequented and preferred tourist destinations, Du Parc will feature 24 luxury hotel residences that are being redeveloped by SDC. World-renowned interior designers BBGM and landscape expert EDSA are working on revamping Du Parc, earlier a hotel.

A representative of Hamptons International said the Swiss expansion of the company’s portfolio will be a perfect fit for its exclusive global client base, especially those based in the Middle East region. “Switzerland is an exclusive holiday destination for visitors from the Middle East region. The Du Parc project offers owners privacy and ease of access to the mountain resorts of Verbier, Gstaad and Zermatt by a short helicopter ride and will be an ideal second or third home thanks to the pleasant climate, beautiful scenery, sense of security and the hospitality of the locals.”

They added: “Du Parc offers four distinctive advantages – the association with one of Switzerland’s trusted developers; breathtaking location; elegance of design and exceptional service provided by Kempinski. With only 24 apartments, Du Parc will be an exclusive address, and will pamper guests with an array of innovative facilities and impressive design.”

Nicolas Garnier of Swiss Development Company said the partnership with Hamptons offers strong inroads for the company to reach out to a wide customer base in the Middle East region, specially. “Du Parc is the first of its kind serviced residence in Switzerland and our redevelopment focus on design aesthetics will be complemented by the service expertise of Kempinski.”

Located in a classical Belle Epoque style building and set in 3.2 hectares, Du Parc homes are located above Lake Geneva in the heart of the Lavaux region. They are described as ‘beyond luxury’ apartments to highlight the pampering lifestyle experience that awaits customers. Five star hotel service will be provided by Le Mirador Kempinski Mont-Pelerin and international concierge services by Quintessentially. A cigar lounge and a 650 sq m private spa are other features.

Swiss Development Group SA was founded in 2007 to create and develop high-luxury, landmark real estate projects, including five-star condominium hotels and luxury private hotel residences in Switzerland and around the world. The company redefines the scope and depth of luxury living by going beyond property to create the ultimate lifestyle options for its clients.

Hamptons has a strong presence in the Middle East and North Africa region through offices in Dubai and Abu Dhabi in the UAE, Oman, Saudi Arabia, Egypt and Morocco. Acquired by Emaar Properties in 2006, Hamptons International has headquarters in Dubai and London, and features a diverse project portfolio in addition to offering property management, valuations and research, advisory and mortgage services.

The unveiling of the Burj Khalifa was an unforgettable night by all accounts.

It was more than just the opening of a building; it was a night for the Nation to come together in mutual love and respect for the visionary leadership that has made UAE the country that it is today.  Standing beneath the tower as flashes of multicolored lights showed off the enormous stature of the world’s greatest architectural marvel, it was a moment in time that will always be remembered as a pinnacle of humankind’s ingenuity and ambition.

An estimated two billion people around the world watched live TV coverage of the inauguration, which coincided with the fourth anniversary of the succession of Sheikh Mohammad as ruler of Dubai.  The value of the tower’s residential units has been skyrocketing in recent months, although much of the space was sold years ago to developers across the globe.  If you haven’t seen the building yet, definitely make it a point to drop by and see the view from the top of the world.