AlArgan Towell Investment is evolving into a major real estate developer with a clutch of projects, the latest one being the RO400-million waterfront development. OER focuses on this fast growing company in an exclusive report
In 1973, WJ Towell & Co. envisioned and developed Madinat Sultan Qaboos (MQS) - one of the finest addresses in Muscat. Exactly after 35 years later, the Group is again set to make a major contribution to Oman's burgeoning real estate and tourism sector with its twin projects luxury resort at Al-Kayiran and waterfront integrated development in the north of Muscat at a combined estimated investment of around RO500 million.
The projects are being implemented through a joint venture, AlArgan Towell Investment that was formed in 2003 in partnership with AlArgan International Real Estate Company, the Kuwait-based real estate development company with footprints in UAE, Saudi Arabia, Bahrain, Egypt and Lebanon. The joint venture had an initial mandate to develop middle-income real estate housing solutions in Oman.
Its first project consisted development of 72 three-and-four bedrooms residential villas in Al-Hail, in vicinity to the Muscat City Centre. Priced in the affordable range of RO35,000 and above, the villas' possession was given in 2006. Currently, their market prices have almost doubled. Moving ahead, in pursuit of filling up the gap in the real estate market for middle-income segment, the company initiated another project development of 100 townhouses at Al-Hail, located on Al-Barkar Street and close to the sports complex. The construction is in full swing and all units have been sold out. Like the previous project, the townhouses' market prices have also appreciated significantly. The units, originally sold for RO38,000, are now valued at above RO65,000.
Giant strides
After making a confident beginning, AlArgan Towell Investment has broadened its attention by planning and developing projects on larger scales. The first example of its expansion plans is Qurm Gardens a premium residential and commercial complex located in the heart of the city and next to Qurm Natural Park. Construction work is going on at the site, which encompasses 40 residential townhouses, retail and office space to contribute to acute shortages currently witnessed in these products.
"Inspired by the traditional architectural style of Oman, Qurm Gardens offer a total harmony between heritage and modernity to satisfy the needs of Omani citizens. The units are constructed in various typologies that shape the skyline of the neighborhood in a way reminiscent of a traditional Omani village," said Hassan Al Nabhani, general manager of AlArgan Towell Investment. The project was adjudged the best architectural design in the CNBC Arabian Property Award 2007 recently.
"Apart from Muscat, we are looking at developing different kinds of reasonably priced housing infrastructure in Sohar and Salalah," informed Al Nabhani.
AlArgan Towell Investment have also been working diligently with the Ministry of Tourism, concerned government authorities, and impressive teams of international planners, architects, engineers, environmentalist, and operators to introduce large-scale integrated world-class developments in Oman. A water and beachfront project, just north of Muscat, at an estimated cost of RO400 million is currently planned. For the first time, the company will be targeting expatriates, besides Omanis. Spread over an area of 620,000 sq m, it will have tourism, residential, entertainment, leisure, commercial and retail facilities with the aim of founding a vibrant community for people to live, work, shop, rest and play. At least three hotels are also expected to come up there. The company is aiming for starting construction in the first quarter of 2008 after meeting the statutory requirements.
At the core of this growth are values that enshrine developing Omani art and culture and preserving and caring for the environment ensuring sustainable development. The design is conceived such that minimal impact is there on the serene environment. Sea water is to be invited in land to create an inland marina with water front development that would accentuate and pronounce even more the natural beauty of the site. Negative environment impacts of extending breakwaters and land reclamation shall be brought down to the bare minimum. The facility will aim to work with government to spread awareness of the importance of preservation of the natural habitat and environment that Oman is endowed with.
The inland marina with almost 100,000 sq m area will cater for around 150 berths and provide extended water frontage to the residents of the development. At the top end, it will have luxury water and beachfront villas. Then there are residential units like townhouses, small villas and apartments for local middle-income segment, the company's original focus market. Office, shopping, a promenade with dining and recreational facilities to make living an enjoyable experience, are part of the project. Tourists who like to be in a setting with communities and relevant facilities around them would find a lively and active setting. Yet for those who seek to immerse in nature, in a quite, tranquil secluded ambience would find accommodation, spas, and amenities to serve them with a high degree of luxury and service.
Foray in hospitality
"Al-Kayiran Resort is an exclusive, environmentally friendly resort in a heavenly crystal blue secluded natural bay, with a design that has witness a spectacular receiving from both the general public and leading architectural professionals in the recently held CityScape exhibition in Dubai. The design has been hailed for its subtlety, minimalist approach, attention to site detail, and inhibiting the site rather than imposing upon it providing a continuation of the natural features of site" Al Nabhani said.
"The world class luxury hotel resort offering no more than 82 keys brings to Oman one of the most prominent luxury hotel operator in the world with awards and accolades that testify to level of excellence of their properties and service philosophy. The construction is expected to start by the first quarter of 2008. Most of the clearances are in place. It will be ready in two years time thereafter," Al Nabhani added.
The plan sounds fantastic but it will be interesting to see how this property shapes up as at least two other major players Sama Dubai and Orascom are also coming up with their own properties in the vicinity. With the thrust on developing tourism in Oman and the success of The Wave, and given the growing demand for affordable housing, AlArgan Towell Investment seems to be on the right track.- Akshay Bhatnagar
Major Projects of AlArgan Towell Investment
Plans (yet to start the construction)
Luxury Resort at Al-Kayiran, south of Muscat. The construction of the 82-rooms property expected to start in the first quarter of 2008.
Integrated water and beachfront development project in the north of Muscat with an investment of RO400 million. Tourism, residential and commercial infrastructure spread over 620,000 sq m. Expects to start construction work in the first quarter of 2008.
Under Construction
Al-Qurm Gardens, a premium residential and commercial complex, is under construction and expected to be ready by 2009. The project has received CNBC Arabian Property Award 2007 for the best architectural design for multiple development
100 townhouses located at Al Hail, on Al-Barkat Street, targeted at Omani middle-income segment is under construction. All units have been sold.
Finished
72 residential villas in Al-Hail, near Muscat City Centre. The units were handed over to the buyers in 2006. The market prices have appreciated by 90-100 per cent.
© Oman Economic Review 2007
