The Regency Group, with main interests in trading and catering services, is venturing into mainstream retailing by opening the 75,000 square foot Grand Shopping Mall next month.
It is located in Al Quoz, which is being developed as a residential area.
The mall will also house the Grand Hypermarket, spread over 50,000 square feet.
All other retail space has been rented out at rates not radically different from those prevailing in more developed locations, a senior official said.
The project cost the group around Dh30 million, including Dh10 million to buy the land two years ago.
"While Al Quoz had been marked primarily for industrial purposes, some of the latest developments will ensure that it grows in stature as a residential location as well.
"In this scenario, there is space for a shopping facility that will offer value for money, especially as there are very little retail-related ventures in that area," said K. Nandakumar, managing director of Regency Group's hypermarket division.
"The decision to open the mall was taken after careful research. Why should someone drive down all the way to Bur Dubai or Deira when the same products can be purchased in the area itself?"
Based on the company's feasibility studies, the mall could serve around 100,000 people in the next five years from the current 20,000.
Projects such as Nak-heel's International City have also raised the profile of that particular stretch of Dubai's real estate.
The group has plans to take up similar ventures in Jebel Ali and Sharjah at a later date. Some of the other Gulf markets could also be a possibility, the official added.
New entrant
Grand Shopping Mall in Al Quoz will open early next month.
It will house the Grand Hypermarket, spread over 50,000 square feet.
The project cost the Regency Group around Dh30 million, including Dh10 million to buy the land two years ago.
Based on the company's feasibility studies, the mall could serve around 100,000 people in the next five years from the current 20,000.
The group has plans to take up similar ventures in Jebel Ali and Sharjah.
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