Construction & Real Estate

Abu Dhabi buys Chrysler tower for US$800m

One of the best-loved buildings on the New York skyline has been sold to the investment arm of the Abu Dhabi government for an estimated US$800 million (£400 million).

New Jersey-based Prudential insurance company confirmed it had sold its 75 percent stake in the art deco Chrysler building to the Abu Dhabi investment council. Abu Dhabi is the biggest and richest member of the United Arab Emirates. Like other Middle East groups, it has been able to take advantage of collapsing property prices and soaring oil revenues.

Unique unveils AED1.06bn projects on Abu Dhabi Reem Island

Dubai-based real estate developer Unique Group has launched two projects with a combined development cost of AED1.06 billion on Abu Dhabi's Reem Island, its owner and managing director said.

Shabbir Hussain said that the construction on the projects, one residential and the other mixed-use, will start by the end of August with completion targeted for December 2010.

Gulf alliance acquires central realty asset in London

Leading Gulf property investment firm Invest Realty PJSC lined up with a group of investors to make their debut in the UK, after the alliance purchased a 200,000-square foot waterfront site in London.

The coalition includes Qatar-based First Investor Co. The purchased location in downtown London is located opposite to the River Thames, overlooking Chelsea, and sold for the equivalent of US$750 million.

Nakheel awards AED2.2bn contract for Mina Rashid

Nakheel said it has awarded a AED2.2 billion contract to a joint venture between Dredging International and Boskalis Westminster Middle East to reclaim land at Mina Rashid, the newly rebranded project redevelopment at Port Rashid.

"The contract will include a sizeable amount of land reclamation, including the construction of a breakwater and shore protection. Approximately 86 million metre cube of sand will be dredged reclaiming 540 hectares of new land. Work will start immediately and will be completed within a period of two and a half years," Nakheel said.

Limitless ploughs ahead with Arabian Canal

More than 1.5 million cubic metres of earth – enough to fill 600 Olympic-size swimming pools – has been excavated for the Arabian Canal, the 75 kilometre man-made waterway designed and managed by Limitless.

Pilot excavation work on the US$11 billion project has left a giant hole which, at 700 metres long, 200 metres wide and up to 45 metres deep, is big enough to hold nearly 20 A380 Airbuses or eight of the world's largest cruise ships.

N. Emirates: FEWA urges real estate restraint

The Northern Emirates' uncoordinated real estate boom threatens to leave new projects without access to vital utilities, according to a senior official from FEWA, the Federal Electricity and Water Authority.

Speaking to local press, Executive Director of Supply Hassan Abdullah Al Ghasyah said unplanned developments could cause a major shortfall in water, electricity and drainage, which could take years to remedy.

Zaya to build AED3bn Abu Dhabi project

Real estate company Zaya has launched a AED3 billion island project called Nurai comprising 31 beachfront estates and 50 water villas located four kilometres from the Saadiyat Island, its chief executive said.

"It's a luxury property that will be known for its privacy and exclusivity," Nadia Zaal said. "Sales began in May this year. We have sold whatever we released. We are looking to release the rest of the project in October this year." The estates and villas are priced between AED35 million and AED110 million. There will also be a 60-room resort with room rates ranging from US$3,500 to US$5,000 per night.

Global launches GCC Real Estate Fund- II

Global Investment House (Global) announced the launch of Global GCC Real Estate Fund- II, a close ended fund dedicated to capitalising on investment opportunities in the countries in the GCC region. The fund's target capitalisation is US$500 million.

Mr. Omar El-Quqa, Executive Vice President at Global stated: "We are very excited about the launch of our second fund focusing on real estate opportunities in the GCC region. Our GCC Fund-I received excellent response from the investors and was invested within the prescribed time."

Pearl Dubai, Starwood to develop $US680m hotel

Pearl Dubai FZ LLC, a consortium of investors led by the Al Fahim Group, announced it had signed an agreement with the US-based Starwood Capital Group to develop a AED2.5 billion ($US680 million) Baccarat Hotel and Residences at Dubai Pearl.

Scheduled for completion in 2011, the AED1.5 billion ($US408 million) Baccarat Hotel will cover an area of 500,000 sq feet and boast 342-rooms. The AED1 billion ($US272 million) Baccarat Residences, featuring elegantly designed apartments over 300,000 sq feet area, will also bear the inimitable stamp of the Baccarat brand within its aesthetically crafted interiors.

Middle East investors set to snap up prime real estate in Europe

As pricing corrections hit western markets hard, Middle Eastern investors, including Dubai, look set to reap the rewards of prime commercial space in key European cities, according to officials at property consultants, Colliers International.

Eamon Alashkar, head of capital investment at Colliers Middle East, said that because of the effect the credit crunch has had in the US and Europe, now is the time for Middle East institutional investment.

China to set up four projects in Egypt's Suez Gulf Zone

The Chinese government has approved to set up four major projects with a capital of US$300 million in the area allocated to the Egyptian-Chinese Joint Venture Company for Investment, established to contribute to the development of North West Suez Gulf Zone.

During his meeting with Suez Governor Sayf Jalal, the Chinese general consul in Alexandria said the company will manufacture motorcycles, oil pipelines, glass fibres, electricity transformers.