Sheffield Real Estate, one of the leading Dubai-based private developers, with over AED 5 billion freehold projects in sales revenue in the emirate today said it will commence construction of its commercial project, AED 300 million Corporate Towers in Jumeirah Lake Towers community, within the first quarter of 2009.
Affirming its confidence in Dubai’s freehold real estate market to weather the current uncertainty and emerge stronger, Sheffield said that all its projects for which contractors have been awarded, including the flagship AED 1.7 billion, Marina 101, is on track and will be completed within the scheduled time frame.
Mr. Abu Ali Malik Shroff, Chairman of Sheffield Real Estate, said: “We have already short listed contractors for the Corporate Towers, which is the first office development in our portfolio. We believe that despite the current phase of slowdown, Dubai’s real estate market will pick up speed and investors will be tempted to participate because the rental yield is still more attractive compared to other key global real estate markets. The real estate market may be going through a tough patch, but even if rental yields may pass through a downward correction from 10-15 per cent, the market would still be attractive as the emerging rates would be higher than the global average. This is particularly true of commercial space.”
He said any correction in the real estate market would be good in the long-term. “As it emerges out of the current phase, there will be more prudence in the market which will benefit genuine investors. It should also be noted that thanks to the various regulatory measures taken by the Land Department and the Real Estate Regulatory Agency (RERA) to ensure transparency in the market, will help and support maturity of the market in the long-term,” Mr. Shroff said.
Sheffield’s Corporate Towers will be spread over 1.1 million square feet in a prime location in Jumeirah Lake Towers. The project will comprise a 45-floor tower and a 10-floor twin offering office units in the range of 1,300 square feet. The development in the new business and residential district of Dubai flanking Sheikh Zayed Road will have many USPs including structured cabling, business centre, and a gymnasium for the health conscious.
“We are confident that businesses will be on the growth track in the next few months and Dubai will remain an attractive regional vantage point to set up offices, thanks to its excellent infrastructure facilities and connectivity to the countries in the Middle East and North Africa region. There is no place which can be an alternative to Dubai in this region,” Mr. Shroff said.
Corporate Tower is Sheffield's seventh project in Dubai, including its flagship AED 1.7 billion project Marina 101. At 101 floors and 412 meters, Marina 101, situated at the Dubai Marina, is the tallest hotel apartment tower in the world and is expected to be complete by the 1st quarter of 2011. Marina 101 has a world-class hotel component to the project, which will occupy the first 32 floors. The residential project offers an assured 75 per cent returns on its net revenue on the management from the property after possession.
“Last year we awarded the construction contract for Marina 101 to Tepe Akfen (TAV) Construction, part of Turkey-based construction major, TAV, and work is in progress on the project. We are on track and we will deliver the project in time,” he added.
Sheffield now has projects across Dubai, spanning the International City, Jumeirah Lake Towers, Dubai Waterfront and Mizin, where the realty company is constructing a unique retail mall. Mr. Shroff said the diversification of the portfolio has been done so that Sheffield is present in all potential growth sectors of the economy of Dubai.
