Kuwait based real estate developer, Abyaar Real Estate Development, plans to invest up to Dh5.14 billion in Dubai over the next year. The company launched its first project - two luxury serviced apartment towers Pier 24 and Pier 8 in Dubai Marina yesterday, with an investment of $150 million (Dh550m).
"The plan is to soon double our investment in Dubai. We have two to three more projects lined up for the emirate in the next one year.
"While we have launched with Dubai, we are exploring for opportunities in other emirates as well," Marzouq R Al Rashdan, Managing Director of Abyaar Real Estate Development, told Emirates Today.
"While a majority of our portfolio will constitute residential units, our next project would be mixed-use development comprising retail and offices elements, and targeted mainly at the commercial sector," he added.
As for the two towers,Abyaar is in the final negotiations to have the facilities managed by Brussles-based Rezidor SAS Hospitality, which already has a presence in the serviced apartments segment in Bahrain and Saudi Arabia.
"This would be our first one in Dubai. While Pier 24 has already been signed, Pier 8 is under negotiations with Abyaar. Our serviced apartment business would be extended to one or two more developments in Dubai itself, along with Abyaar," said JeanMarc Bustao, vice president Middle East for Rezidor SAS.
He also said that the hospitality firm is currently in negotiations for some projects in Abu Dhabi as well. "We cannot talk about our plans at the moment," said Bustao.
Pier 24's construction started in January 2006 and it is due for completion in July 2007. The work on Pier 8 started last month, and will be completed in July 2008.
The 20-storey Pier 24 will be operated under Rezidor's Radisson SAS brand, it will house 153 luxury apartments ranging from studio, one bedroom and two bedrooms.
And Pier 8 will feature 234 apartments including studios, one bedroom and two-bedroom flats as well as three townhouses and two penthouses.
Backed by powerful investment groups of Kuwait - Aayan Leasing and Invest ment Company and Al Rashdan Group Abyaar's portfolio will comprise more residential and fewer commercial projects.
"More growth comes from the commercial sector at the moment," said Al Rashdan.
"Our mission is building excellence and to bring international real estate opportunities to global investors that deliver incomparable value to our stakeholders," added Hisham Al Obaid, Chairman, Abyaar Real Estate Development. The company, according to Al Rashdan, will "hopefully be listed in Kuwait next year and later in Dubai".
Furthermore, even though Abyaar's focus will mainly be in the luxury sector of the market, Al Rashdan admits that the demand is more in the medium segment.
"I do not think we will look at the mid or the lower end of the market at all. We are focused on the luxury sector," he said.
Meanwhile, Rezidor SAS's Bustao does not see a clutter in the hospitality market. "Yes, our rentals for the serviced apartments have to be at par with that of the market. But I do not yet see an over supply in this segment. In fact, there will not be one for the next two-three years," he said.
By Shweta Jain
© Emirates Today 2006
