Villa construction begins on Germany island at The World

Tuesday, Jun 29, 2010

Gulf News

first phase of luxury houses set for completion later this year

Dubai Property group Kleindienst yesterday announced that construction of the first villas on its Germany island at The World has commenced.

“Compaction at the island of Germany has been completed, now we are starting with the ground works on 13 villas,” Josef Kleindienst, CEO of Kleindienst Group, told Gulf News.

Kleindienst has appointed Dubai-based City Diamond Contracting to build the villas, mostly five to six bedroom mansions with a size of 4,500 square feet.

“Twelve villas have already been sold to European buyers,” Kleindienst said.

“One villa I will use for myself and my family.” The buyers originate from Germany, Sweden, Austria and Luxemburg, Kleindienst added. Seven villas on Germany island are still for sale.

Construction of the first luxury villa is scheduled for completion in the fourth quarter of 2010.

It will be used as an example for the project to enable investors to select the premium fixtures and finishes for their holiday homes. The entire 20 villa development on Germany island will be handed over in 2011,

Buyers immediately receive their title deed and will also enjoy a bank guarantee during the payment process, Kleindienst said. The entire development is enjoying freehold status.

“All buyers chose the big-sized villas at a basis price of Dh3.5 million and are adapting it according to their personal taste,” Kleindienst said.

The price for the plot at Dh300 to Dh500 per square foot adds to this.

For the time being, the island is self-supporting in terms of power and water. A solar plant delivers electricity, and water is stored in tanks.

Connecting islands

“There are talks between Dewa and Etisalat to connect the islands with supply cables, but I am not sure when this will happen,” says Kleindienst.

Dewa is also rumoured to be mulling the construction of a desalination plant for The World, he added, but no plans have been released yet. Kleindienst’s project at The World comprises of six islands called The Heart of Europe.

Parallel to the works on Germany island, the group will start with Monte Carlo island, which is planned to become a luxury entertainment resort or a “party island”, as Kleindienst puts it, set to open this year.

Further on, construction on the islands of Switzerland, Sweden, St Petersburg and Austria will be launched.

The anticipated completion date for the entire project in 2015, Kleindienst said. When complete, The Heart of Europe will house 75 private holiday homes, six apartment buildings, six hotels, six lighthouses and six floating palaces as well as a diverse range of retail, entertainment and food outlets.

The development of The Heart of Europe will eventually cost Dh3.1 billion.

Ten per cent of the investment amount has already been paid to developer Nakheel, Kleindienst said.

Several other instalments up to 30 per cent of the entire costs will be paid by Kleindienst Group until 2012 in accordance with a payment plan. For the remaining 70 per cent, he will be looking for additional financing, Kleindienst said.

Funding expenses

“We are going to pay all the bills out of our own pockets until 2012, as funding is too expensive at the moment. There is a comprehensive payment plan, and Nakheel is very supportive to us.”

Apart from Kleindienst’s acitivities, it remains rather quiet on the other islands surrounding The Heart of Europe.

One developer has started work on Lebanon island to establish a beach club, Kleindienst said. Three other developer have said that they will commence construction “shortly” on eight other islands, he says, “but I am not sure how serious they are.”

Kleindienst Group, originally launched in Austria and Hungary in 1996 as a property broker and investor, was established in Dubai in 2003 by Austrian Josef Kleindienst and has grown from two to 25 staff responsible for several developments and real estate investments in 11 countries.

Supplied picture

Building a world

Josef Kleindienst, CEO of Kleindienst Group, and Deepak Aroroa, CEO of City Diamond Construction, at The World site.

By Arno Maierbrugger?Deputy Business Editor