Bawadi and Emaar enter joint venture for AED 60 billion signature development
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Bawadi and Emaar enter joint venture for AED 60 billion signature development
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Category: Middle East
This is a press release selected by our editorial committee and published online for free on 2007-10-22
Bawadi, a member of Tatweer, and Emaar Properties PJSC, the property developer with a significant presence in 16 countries, have joined hands to develop 70 million sq ft of land in Bawadi, the largest hospitality and leisure development in the world, located in Dubailand.
The AED 60 billion project will be a signature development by the joint venture with equal equity participation by Bawadi and Emaar. Bawadi will contribute 70 million square feet of land valued at AED 3.85 billion in lieu of its ownership interest. Emaar will contribute AED 3.85 billion in cash to the joint venture over the project construction period to finance the project build.
Depending on project phasing, Bawadi will transfer corresponding land rights to the joint venture and Emaar will contribute its equivalent portion of cash to the joint venture. The joint venture is expected to generate earnings by 2009. The management expects that the compounded annual rate of returns on the project will exceed 15 per cent.
The joint venture will be governed by a board that will have equal representation from both Emaar and Bawadi, with its Chairman appointed by Emaar. The joint venture will be managed by Emaar through a management and technical services agreement.
The joint venture will add a 15 million sq ft family-oriented theme park, featuring a wide range of attractions matching global standards. Reflecting the project’s brand name, it will be at the heart of Bawadi, a part of Dubailand, and located in close proximity to Arabian Ranches, another Emaar signature project.
A place to live, work and play, the new development will have a total built-up area of 60 million square feet. Multiple business hubs will offer a total of 2.7 million square feet of commercial space while the shopping mall and high street retail properties will offer 3.2 million square feet of retailing activity. The boulevard will be fringed by six hotels offering 5,150 keys and 1,200 serviced apartments to serve the influx of tourists and visitors. The residential community will feature 18,000 residences, comprising a mix of low-rise villas and townhouses as well as high-rise towers with modern finishes. Lush, green parks and lakes will be an integral part of the development’s landscape. Master-planning for the project is expected to be completed in six months and work will commence soon after.
Commenting on the joint venture Mr Mohammed Al Gergawi, Executive Chairman of Dubai Holding, said: “The partnership of Bawadi and Emaar signals the new direction of growth envisaged for Dubai by UAE Vice President & Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed Bin Rashid Al Maktoum in the Dubai Strategic Plan. One of the focal areas of the Plan is tourism development and we are confident that the abilities of the two companies will contribute effectively to support the sector.”
Mr Mohamed Ali Alabbar, Chairman of Emaar Properties, added: “As the pioneer of master-planned communities in Dubai and with an accomplished track record in creating world-class developments, Emaar has established credentials in property development. Our partnership with Bawadi will increase our land bank in Dubai by 76 per cent to 162 million square feet. This transaction is a perfect fit to the Dubai Strategic Plan outlined by His Highness Sheikh Mohammed, which underscores the need for Dubai taking leadership position by leveraging on its strengths.”
Mr Saeed Al Muntafiq, Executive Chairman of Tatweer said: “Bawadi is a flagship development for Tatweer. By sharing synergies and resources from both Bawadi and Emaar, the new joint venture will strengthen the hospitality, leisure and residential infrastructure of the project, and give further impetus to tourism growth in Dubai.”
Bawadi is envisaged as the longest chain of luxury hotels in the world along a 10 kilometre stretch which will add 51 luxury hotels and more than 60,000 rooms to Dubai. A highlight of the development will be the 6,500-room Asia Asia Hotel & Resort.
The joint venture marks a new phase in synergistic growth to further consolidate Dubai’s premier positioning as a world-class city. It will specifically focus on creating a master-planned development within Bawadi that complements the overall theme.
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