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I believe this provides the basis for one of the soundest and best regulated rental/
lease sectors anywhere in the world.
Two initiatives at two different levels. The first, international and with particular
application to the Arab world. The second, local and particular to Dubai property rental.
Nevertheless these are two measures that continue to add to the single big achievement
of ensuring Dubai continues to lead the way in property registration and regulation.
MANAGING EDITOR
K Raveendran ravi@sterlingp.ae
MANAGING DIRECTOR
Sankaranarayanan sankar@sterlingp.ae
GENERAL MANAGER
Radhika Natu radhika@sterlingp.ae
Message from the CEO
EDITOR
Linda Benbow linda@sterlingp.ae
Contributing Editors
Ambily Vijaykumar
Vanit Sethi
ambily@sterlingp.ae
vanit@sterlingp.ae
AAF step to Arab real estate
Manju Ramanan manju@sterlingp.ae
standardisation
Designer
I was so happy at the gathering we had at Atlantis, The Palm, with the 12 Arab country representatives.
Ujwala Ranade ujwala.art@gmail.com What had started as a small meeting between RERA members sharing a vision of regional reference
in the matter of real estate regulation, become a reality by the commencement of this gathering. Yes,
Sales and Marketing the first step always starts with a dream, and our step started with the support of more than 20 Arab
countries and a commitment from 12 other countries to move forward to the next level.
Account Manager
Rashmi Pai rashmi@sterlingp.ae The launch of Arab Appraisal Foundation (AAF) is one step in the direction of regulating our
regional real estate sector and sharing the valuable knowledge we have among us. The standards
and continuous education that AAF will give to its members will be the torch that will light the
Accounts & Administration professional way to a global standard, and AAF will be the counterpart for international organisations
Biju Varghese biju@sterlingp.ae like WAVO, TEGOVA, RICS and others.
AAF started big with the support of ARADO and many Arab countries, giving us hope that we would
Circulation Supervisor gain the fruits of their members’ knowledge quickly. Sharing knowledge of the systems implemented
in countries like Jordan, Egypt and UAE will benefit professionals in all Arab countries. Practising
Ibrahim A. Hameed valuation within the Arab world, based on shared approved standards, will make the results of
valuation and decision making better, which will result in enhancing the real estate market in the Arab
world.
Changing into better sectors, following ‘best practices’, and useful information sharing, will make our
Printing societies better, bringing advancement in all fields of real estate.
Asiatic Printing Press L.L.C., PB 3522,
Ajman, UAE. Tel. 06 743 4221,
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Overseas offices: India: Anand Vardhan, DII/89,
RERA neither takes Pandara Road, New Delhi, 110003. Tel: 0091 1 26517981
responsibility nor accredits any Bahrain: Sunliz Publications W.L.L, PO BOX 2114, Manama,
studies, research or statistics Kingdom of Bahrain. Tel: 00973 17276682
that are not issued by it.
CONTENTS
4 Cover Story
Arab Appraisal Foundation 6 Ejari
Online rentals
8 Licenses
Licensed professionals
9 Bulletin Board
Visitors
12 Perfume
Designer perfume
13 Personality
Mahmoud Seddeqi
14 Statistics
February figures
25 Profile
Someone to trust
17 MTA
Predictions for 2010
22 Financial Roundup
A little profit
26 Comments
Good developers 31 Events
Size matters Electrical projects
Future trends
DUBAI REAL TIMES
3
COVER STORY
A
Land Department-led the Land Department, presided at a Administrative Development US Congress-approved Appraisal
initiative to create an one-day summit held at Atlantis, The Organisation. Sultan bin Butti bin Foundation and the UK’s Royal
Arab worldwide valuation Palm, to formally establish the Arab Mejren, Director General of the Land Institution of Chartered Surveyors
institute and introduce Appraisal Foundation (AAF) and Department, formally presented the (RICS). In fact, these two standard-
uniform standards and practices agree on its constitution. constitution of the new organisation, setters with the World Association
came to fruition recently at a closed The initiative is the result of which is intended to have a role of Valuation Organisations and their
meeting of the profession’s leaders sustained cooperation between which will see it become the Arab equivalents in Europe and Singapore
in Dubai. HH Sheikh Mohammed the Land Department and the world’s equivalent of influential provided crucial input into the AAF,
bin Khalifa Al Maktoum, President of Arab League-sponsored Arab international institutions such as the which was first announced during a
three-day Arab League-backed real
estate summit in Dubai in November
2009.
Leading up to the event, the
Land Department, RERA, and the
Appraisal Foundation were the main
movers pushing for the AAF. At that
conference, The Second Arab Real
Estate and Urban Development
Conference, Mr. Bin Butti hailed:
“The Arab World’s commitment
to cooperation and to integrating
standards and practices.”
DUBAI REAL TIMES
A one-day summit to formally establish the Arab Appraisal Foundation and agree its constitution was held recently
5
EJARI
T
he Real Estate Regulatory At a different level, full
Agency (RERA) announced implementation of Ejari registration
that from March 13, all will enable the authorities to
rental/lease contracts for construct a full and accurate picture
Dubai properties must be registered of Dubai’s rental market which will
through its new Ejari online portal. play a crucial role in its planning
The announcement makes effective for the future of the sector and its
the provisions of Law No.26 of ability to influence such factors as
2007 Regulating the Relationship the supply side of the market, and
between Tenants and Landlords in ultimately, the level of prices.”
Dubai and requires all individuals RERA has endeavoured to make
and companies acting as landlords Ejari e-registration of lease/rental
to register tenancy agreements. agreements as easy and accessible
Landlords and tenants who fail to as possible and Bin Hammad said:
comply with the new ruling will find “Individuals and companies should
that their tenancy agreements fall have no difficulty in using the
outside the protection offered by system.”
the law and government agencies Registration through Ejari is
and will not be able to enforce the a simple process requiring little
provisions of the agreements they technical knowledge and only the
enter into. The law clearly states: basic details of agreements are
‘Judicial bodies and governmental entered. These include information
departments and authorities such as details of the property,
should not consider any claim, Mohammed Bin Hammad the name of the rental company,
case or execution based on a and terms of the agreement. Once
tenancy contract unless the same is law and RERA’s vision and mission to anywhere and, at the end of the day, the agreement is entered into the
registered with the Agency.’ establish a robust regulatory system one of the best regulated.” system and registered, it is allocated
Announcing the new ruling and for the rental market and protect the He continued: “Registration a unique barcode which acts as its
the full activation of Ejari, its state- rights of everyone involved.” through Ejari offers full protection reference throughout the life of the
of-the-art online registration system, “Today’s announcement puts in of their rights to all parties with contract. RERA will keep its own
DUBAI REAL TIMES
RERA formally called on everyone place a key mechanism which will tenancy agreement. It ensures these record of the agreement and update
involved in drawing up and entering go a long way towards stamping rights are recognised, upheld, and changes to the register as these
into such contracts to ensure full out violations and malpractice in the enforced by all government agencies. occur.
compliance and avoid violation. rental sector.” He explained. “The It establishes full transparency The Ejari system provides a
Mohammed bin Hammad, aim is to ensure all lease contracts, between landlord and tenant, fully full portfolio of services beyond
Director of the Real Estate Relations and the parties to such agreements, integrates rental contracts into the registering the initial lease
Regulatory Department in RERA, are registered and the details legal framework and opens up the agreement. Renewals, cancellations,
said: “We have launched the Ejari recorded. This will lead to the Dubai possibility of being able to revise transfers and terminations can all be
6 electronic registration web service rental market becoming one of the these contracts seamlessly in the logged.
to meet the requirements of the most transparent and accountable event of disputes. Bin Hammad said: “Ejari will
ensure rental agreements are fair and committee to be executed in
transparent to the parties involved Dubai court.
and that their terms and conditions
are given full weight. Today’s launch
has moved us closer to the stage
where we have one of the best
regulated rental markets in the world
and best practice is the norm across
Dubai’s rental sector. Landlords and
tenants should consult the website
www.ejari.ae”
as both are legally bound by the damage which you are concerned local area and becomes ‘unsightly’. If
What is the role of committee in Law. The Law defines the scope of about to ensure you are not blamed everyone did it, the building would
case of disputes ? implementation of the Law and also for damage, have the Landlord develop a poor image. Excessive
In case of dispute and the arbitrator details chapter articles relating to’. or Landlord’s Agent sign these noise, and lack of consideration of
is unable to do his job, or refused, and immediately to protect yourself. others, is often the cause of disputes.
landlord and lessee failed to assign a Note to tenants - Tenants needs Providing a Tenant has paid the Therefore, newcomers to Dubai,
new arbitrator, the committee should to be fully aware that the property rent, is not breaking any Laws, and should be aware that respect of the
assign, on the request of any of them, is the asset of an owner, and the using the property for which it is an local culture is one of the reasons
arbitrators to continue the arbitration tenant has no right to alter, damage, ‘approved use’ by municipality, then that over 180 different nationalities
process. change the interior or exterior of the one should expect peace and quiet currently live in harmony, Dubai likes
7
• The decision made by the property without express written enjoyment in your home. to keep it that way.
LICENSES
Licensed professionals
• Dubai 2009 property business permit numbers soar to 6,871 licences as RERA
reclassifies sector's key activities.
• Professional real estate industry now a reality, says licensing official.
L
ast year RERA issued 6,871 pressing for and winning approval proposition. office of an international
licences to companies from the Ministry of Labour to have We have been convinced property company, Organising
and individuals property exhibitions,
authorising them • Organising property auctions,
to undertake commercial The five basic • Property inspection services,
activities in the property • Managing and supervising
sector. This announcement, categories of Owners Associations,
which follows the property-related • Property administration and
agency’s comprehensive
reworking of the licensing
commercial activities supervisory services,
• Managing timeshare property,
classification and have been extended • Brokerage leasing timeshare,
qualifications it inherited to 19. RERA has • Mortgage brokerage,
from the Department of • Property training institutes,
Economic Development linked registration • Valuation services,
(DED), indicates there was to qualifications • Property consultancy,
a surge in activity in the
and effectively • Mortgage consultancy.
sector last year. Mr Al Hashemi added:
The five basic categories outlawed unqualified “Classification and registration have
of property-related and unregistered raised standards across the sector
commercial activities and ensured professionals are
previously recognised practitioners from qualified to carry on their activities
by the sector have been carrying out work in and are properly accountable to
extended to 19 as RERA
rigorously pursues its
the sector. their clients, as are developers. Each
is clearly listed in specific categories
policy of professionalising Yusuf Al Hashemi of activities and registered as
the sector. It has linked having the necessary qualifications
registration to qualifications and property professions recognised on throughout that the best way to to carry out his task as a member of
effectively outlawed unqualified visas and labour cards. achieve effective regulation is to a professional body.
and unregistered practitioners from Yusuf Al Hashemi, Head of RERA’s create a professional sector wedded Companies and individuals
carrying out work in the sector. Licensing Department, said: “RERA to best international practice. We licensed to work in the real estate
Brokers for example, one of the has carried out a complete and are heading in the right direction sector in Dubai are also registered
key players in the sector, have faced comprehensive review of property and moving ever closer towards our with RERA where their details
possibly the strictest clampdown activity in Dubai. We have reclassified goal.” can be checked just by going
with their activities clearly stated each of them and defined the The 19 real estate business to our rpdubai.com website. We
and their registration to operate specialists who will carry them out activities classification issued by have reached this stage through
now conditional on being properly and in the process, we have divided RERA and which has replaced the discussion and cooperation with
qualified and meeting the requisite some of the categories which were five previously recognised include the DED. We have both put a
criteria laid down by RERA to be previously combined. the following: considerable amount of time and
• Property development,
DUBAI REAL TIMES
included in one of its colour-coded Our overriding concern has effort into revising the system to
zone of operation categories. been to clearly establish the rights • Renting out and administering make sure the end result is right for
The plus side is that investors, and responsibilities attached to property interests on behalf of the market.”
buyers, sellers and the rental sector each property professional. This others, He concluded: “The professional
can be confident that in RERA creates clarity for their customers • Renting out and administering practices that are emerging as
registered practitioners, they are and provides a solid basis for trust. property interest on your own standard across the sector is a
dealing with properly qualified The fact RERA approved almost behalf, profoundly positive step for real
professionals who can give them the 7,000 licence applications last • Buying and selling land and estate activity in the emirate and
best advice. There are advantages year demonstrates the real estate property, ensures that what we offer here in
8 for the practitioners too, with RERA professions have bought into the • Rental brokerage, representative Dubai is among the best available.”
BULLETIN BOARD
R
ERA has finalised three The Association Constitution is bodies, real estate development in freehold areas in coordination
regulations necessary to intended to detail the rights and companies and associations. It with the developers and conducted
clarify the relationship responsibilities of every Owners’ visited residential and commercial comprehensive meetings with the
between the property Association in Dubai. It is a standard complexes and met experts in owners of the projects clarifying
owners and developers under document and may not be varied service charges and maintenance their rights, duties and obligations
Law No. 27 of 2007 Concerning by a developer or by an Owners’ assessment and assessed the best to be met by the developer, and
Jointly Owned Properties in the Association. It also provides the methods and systems for calculating his disclosure of all financial and
Emirate of Dubai (‘JOP Law’). The functions and powers of the owners’ the fees. management matters concerning
regulations will also define the association. In another step, RERA studied the operation of the project during
responsibilities and duties of owner Among other things, the internal practices of master the period of management by
associations in managing the Association Constitution gives developers and sub-developers in the developer as well as provide
jointly owned property scheme further details in relation to the the emirate in relation to calculating details of all work carried out with
to ensure the continuity of quality association’s powers and obligations fees for services and maintenance, the Master Developer. They must
property management through to: and conducted interviews with provided accurate statements and
regular services and foster a spirit of • Enter into contracts with professional companies in the assist the new Board of Directors of
harmony and goodwill between the maintenance companies and market. It also visited project sites the Owners Associations to oversee
owners and occupants. licensed service providers; and conducted field studies of both and manage their own property,
The regulations, which are • Obtain insurance for common the building and the main project. providing support and assistance to
expected to be released soon, will areas; and Through applications submitted them if asked.
also require developers to prepare • Collect and recover service by developers and owners RERA will always provide support
the documentation necessary to charges from the owners of for approval of services and to them by the RERA Owners
register owners associations and will units. maintenance charges, the Owners’ Association section which so far
encourage transparency in service It also defines the process for Associations section received the has established thirty (30) Owners
charges and service provision. nominating and electing the Board applications, examined and studied Associations. RERA also supports
The three regulations include: of the association and appointing the lists of services and maintenance developers and encourages them to
• Jointly Owned Property specialised management companies and their fees as well as carrying out form an interim owners association
Declaration Regulation (JOPD approved by RERA to assist the field visits of the projects. so as to be involved in managing
Regulation) association in performing its RERA has approved fees and and preparing the budget.
The JOPD Regulation specifies functions.. services for 51 real estate projects of
the information which must Once the regulations come into jointly owned properties.
Land Department signs
be included in a jointly owned force, RERA will begin registering
registration accord
property declaration. For example, Owners Associations and will take
RERA establishes 30
entitlements of each of the units appropriate steps to ensure that with Malta
in the jointly owned property, the developers comply with the JOP Owners Association
community rules and a site plan Law and its regulations. RERA carried out field visits to the Director General hails first step in a
of the common areas of the jointly premises of joint owned properties series of international partnerships
owned property.
RERA approves service
• General Regulation:
The General Regulation defines the charge fees for 51 real
responsibilities and duties of the estate projects
developers in relation to the creation
of jointly owned property schemes RERA began to study the system
including the responsibilities of of imposing fees and services for
the developer before and after jointly owned properties through
DUBAI REAL TIMES
10
particularly as he watched his
ideas turn into reality, and recorded
his name on the ‘wall of creators’
which the department has started
to fill with the suggestions already
submitted..
According to Majid Al Hosni Sun
whose name is on the wall of the
creativity: “Seeing my name on the
wall is a large incentive, greater than
any financial reward. It is sufficient
to know that my ideas are being
used.”
He said that “The discretion of
senior management has prompted
me to offer more ideas, and it takes a
strong motive to put forward more
ideas.”
He added that he is keen to
preserve the intellectual property
rights of staff.
Dubai Bank - From left to right - A senior representative of DLD; Marwan bin Ghalaita, CEO of Rera; Sultan bin Mejren,
Director General of Dubai Land Department; Mohammed Amiri, Head of Retail Banking at Dubai Bank; Tariq Al Farsi, Head
Customer service of Branches, Dubai Bank; and Masoud Alansari, Government Zone Branches Manager, Dubai Bank
A
s part of its visit to our offices.
50th birthday It is composed
celebrations, the of a mixture of
Land Department aromatics, a mixture
has unveiled its own of old and new
perfume called Attar Al sensory fragrances.
Ardh (meaning ‘Scent of the This circle of
Land’). thought and senses
“The perfume was corresponds to the
launched to coincide with circle of work we
50 years of existence of do from reservation
the department,” said to registration, from
Mohammed Sultan Thani, old methods around
Assistant Director-General at to new methods
Land Department in Dubai. of dealing with the
“We have been working on evolution of the real Majida Ali Rashid
Mohammed Sultan Thani
this unconventional idea for estate sector.” is to increase input into the Human
almost a year now and finally we been incurred. It is about having our “This aroma is for one of the five Resources area of encouraging our
created a distinct fragrance for us,” own perfume brand. It has just been senses, the others are taken care employees to attain the highest
he said. distributed to our employees. As of of in our offices covered by the level of best practices, so that
Although he did not disclose now, we don’t have plans to sell it in reception and service we provide to our customers, the reason for this
the cost of creating the perfume, the market.” all customers,” he added. Department being set up, will
Thani said: “The idea is not to trade The Assistant Director General Thani said the department is also benefit from top notch service in
in the market to make money. The said: “We hope that when a client looking at different ways on how to any of the sections that they visit.”
issue is not about the cost that has smells this perfume he will recall his circulate the fragrance across every She explained, “We are serious
corner of the in developing institutional
d e p a r t m e nt ’s performance, which enhances the
building. capacity of workers to apply the
T h e concepts of modern management
fragrance has and advanced customer service.
been created Plans have been put into place to
with the help help them achieve satisfaction,
of Um Khalifa, a resource development, simplification
local perfume- of procedures, documentation
DUBAI REAL TIMES
Section.”
Mahmoud
was the man
who went out
and measured
plots of land
owned by
UAE nationals,
measuring and
marking the
13
STATISTICS
February figures
Arabian Ranches tops region in terms of the number of transactions
Deals worth Dh1,128.67 billion carried out in Dubai
T
he last week of February saw Dh6.46 million, and 14.86 thousand
Dh1,128.67 billion worth of square feet in Al Qusais Industrial
transactions taking place in Fifth sold for Dh12 million.
Dubai, of which more than The last week of the month
Dh429.36 million was tied up with saw a record 124 transactions take
mortgages for land and real estate place with a total value of Dh302.53
totalling $395.32. This information is million. The most important piece
part of the weekly report of actions of land was in Ramoul, recording an
issued by the Land Department. amount of Dh62 million, and another
The last day of the month was in Al Mamzar at a price of Dh40
witnessed a record 49 transactions million.
to the value of Dh21.21 million on In terms of freehold villas and
the Palm Jumeirah, and Dh15 million apartments, 381 villas and 363
in Al Quoz, plus Dh15 million in the apartments have been registered
Al Nasser area. with a total price of Dh572.76
Arabian Ranches recorded nine million. Of these, 18 villas have
The last day of February saw 49 transactions to the value of Dh21.21 million take
mortgages for Dh28.85 million; Dubai been mortgaged to a value of place on Palm Jumeirah
Sports City had nine mortgages Dh32.72 million, and 70 apartments
valued at Dh30.29 million, and the have been mortgaged to a value of
Palm Jumeirah had five mortgages Dh92.79 million. 18 villa
for Dh45.23 million, with Emirates mortgages
Hills Third recording four mortgages • 18 villa mortgages Dh32.72 million 293 villa and
valued at Dh7.55 million. • 70 apartment mortgages Dh92.79 million apartments -
• 293 villas and apartments -
70 apartment
Dubai Industrial City had an area
mortgages other financing
of 34.81 thousand square feet sold other financing Dh447.25 million
for Dh5.01 million.
Palm Jumeirah had 15.28 • 381 villas and apartments Dh572.76 million TOTAL
thousand square feet which sold for
14
Index of Rental values in the Emirate of Dubai - Issue date (01/01/2010)
Residential Units Free Hold (Apartments)
The rental value of residential apartments - Per Thousands
Area Studio One Bedroom Two Bedroom Three Bedroom Four Bedroom
From To Avg From To Avg From To Avg From To Avg From To Avg
Dubai 45 60 52.5 70 110 90 80 160 120 140 200170 200 240 220
Marina
Country No. of %
British 749 21
Iran 381 11
India 332 9
Russia 236 7
Pakistan 179 5
uAE 142 4
u.S.A 129 4
Kazakhstan 118 3
Canada 86 2
Italy 67 2
Country No. of %
Jordon 5 25
Canada 3 15
Latvia 2 10
Pakistan 2 10
uAE 2 10
KSA 2 10
Kazakhstan 2 10
DUBAI REAL TIMES
Iran 1 5
uSA 1 5
20
Country No. of
uAE 2
Land Investors (Dubai Marina) 15
The Total No. of Land Investors in Dubai Marina District in 2009 was 4 invertors. KSA 2
PROJECT OF THE MONTH
Ocean Heights
Dubai Marina
Damac Properties Co. LLC
DUBAI REAL TIMES
16
MARKET TRENDS & ANALYSIS
T
he room was full, it was hush quiet as financiers
and journalists waited to hear some happy news,
hopefully. Leading real estate investment advisory
company Jones Lang LaSalle had pronouncements
to make about the industry and were willing to make
predictions about the future of the industry … out loud.
“The local markets have changed significantly following
what happened globally, locally and regionally,” began Blair
Hagkull, Managing Director, Jones Lang LaSalle MENA. “In
2010, the UAE real estate market is moving away from the
off-plan sales model towards a longer term model based
on secure cash flows. Real estate investment vehicles are
being redefined as more interest is shown towards co-
investment vehicles. However, the general downturn in
market performance is not affecting all locations or assets
type equally.
The level of returns is expected to be more stable in
quality projects and locations as they are performing
comparatively better than others. This flight to quality is
significant as these are signs of maturity in a constantly
evolving market.”
1. Selective stability
The UAE market will see a general decline in
performance during 2010. The market will experience
greater differentiation as some locations will perform
better than others. This is in spite of the on-going
decline in values, plus an oversupply and higher
vacancy scenario. This selective stability will result in
a polarising effect on the market and will give rise to
DUBAI REAL TIMES
21
FINANCIAL ROUNDUP
A little profit
I
t is better to make a small profit significant challenges in 2009,” said method of revenue recognition, and timely collections of its
than no profit at all, is an old wise Markus Giebel, Chief Executive Officer the revenue and related profit receivables at home in the UAE,
saying that has been handed of Deyaar. “Despite such volatile for a project sold are recognised while simultaneously identifying
down through the ages. After conditions, Deyaar successfully when the project is handed over to strategic expansion opportunities
the past economically upsetting year, handed over eight projects last year, customers. overseas, including potential future
this adage applies with a heartfelt including an Dh363 million project Based on IFRIC 15 revenue opportunities in regional markets
relief to some businesses who have in Lebanon.” recognition policy, the company’s such as Lebanon and Saudi Arabia,”
been frantically endeavouring to In line with global best practice, gross revenues for the 12 months Giebel explained. “With six projects
survive the downturn. Deyaar has adopted a revenue stood at Dh1.835 billion, an increase slated for handover this year and the
Deyaar Development PJSC, recognition policy based on the of 33 per cent compared to Dh1.382 ongoing completion of income-
recommendations billion in 2008 (restated as per IFRIC generating assets, in parallel to the
of the International 15). The reported gross revenues continued stablisation of regional
Accounting Standard of the company for 2008 (as per and international markets, we look
Board (IASB) relating to the percentage of completion forward to reporting continuous
the International Financial methodology) was Dh2.956 billion. stable cash flows in 2010.”
Reporting Interpretations Based on IFRIC 15 revenue The total equity of the company
Committee (IFRIC) 15 recognition policy, Deyaar reported stands at Dh6.75 billion as at
- Agreements for the a net profit of Dh30 million, a decline December 31, 2009.
Construction of Real Estate, of 95 per cent compared to Dh6,54.7 “Deyaar’s sound fundamentals
to recognise revenue million in 2008 (restated as per IFRIC and prudent operational strategy,
based on the completed 15). including generating stable income
contract method. “In 2010, Deyaar will continue from property management
In the case of the to focus on the completion of and leasing activities, places the
completed contract the consolidation of its projects company in a prime position to
Markus Giebal
benefit from the global recovery.
a regional real estate company Al Seef Tower Moving ahead, we will continue
dedicated to innovation, customer to focus on providing innovative
care and long-term sustainability, has solutions that meet the evolving
announced its financial results for needs of our customers,” said
the 12 months ending December 31, Giebel.
2009. Despite extremely challenging
conditions globally, which have Home and abroad
impacted the performance of the Highlighting its global footprint
real economy worldwide and the with the recent inauguration of Burj
property sector in particular, Deyaar Khalifa, the world’s tallest building,
continues to focus on its unique Emaar Properties PJSC has announced
consolidation strategy, which has led its financial results for the 12 months
to a reduced level of defaults and a ended December 31, 2009. Annual
higher paid-up value for each of the net operating profits for the period
DUBAI REAL TIMES
F
lashback to the summer of hands. Located in Dubai Internet City, the complicated technicalities authentication of all principals and
2007. It’s hot, happening enTrust & Title is essentially a neutral of property transactions. For a eliminates any financial risks posed
and haphazard. Everyone’s third party company that undertakes reasonable fee, it lays to rest the to the parties involved in a property
making a killing in Dubai, fears of those investing transfer or rental transaction. It also
buying and selling property. But huge amounts in a offers a renewable assurance policy
where’s the property? It’s not even transaction whose to ensure a proper and complete
on paper - it’s just in the air. Or in legal requirements transfer of the title at the close of
colourful brochures and flyers with are unclear and the transaction. The services comply
futuristic designs. Before even the incomprehensible. with the government’s quest to bring
blueprint is finalised and approved, “If the parties are transparency, accuracy, and efficacy
the property is already sold twice willing to pay huge to property transactions in order to
over. And before the construction amounts for legal ensure international confidence in
begins, it’s been flipped many times. services, then for a Dubai’s real estate market.
But by the time maybe a genuine reasonable sum at our Most importantly, the company’s
buyer has got the papers in hand disposal, they can avoid timing of entry into the Dubai
towards the winter of 2008, the costly litigation arising property market is appropriate,
world economy has come crashing out of misunderstood coming at a time the emirate was
down like a pack of cards. And contracts or those looking out for a viable media that
many so-called ‘fantastic properties’ that do not conform could build trust between different
disappeared in the Arabian sands to the new escrow parties involved in a property
without a trace. Those who had regulations,” says Aziz transaction, and at the same time
pooh-poohed any talk of a giant Valliani, the suave guarantee compliance with legal
bubble building up were now CEO of the new issues like the escrow law. When
waxing eloquent on the financial company, a wholly Aziz Valliani came to Dubai over
tsunami storming the world. Alas, owned subsidiary of three years ago, he felt the need
UAE has one of the best escrow services in the world,
it was too late for those who had says Aziz Valliani, the CEO of enTrust & Title
the 23-year-old US for a company like this to bring
already burnt their fingers badly and company based in order to the chaotic property
made a mess of their investments. settlement services and ensures California. jungle that Dubai was then. The
A crisis does provide some title legalities. With the backing of world economic collapse came like
lessons. And this was a catastrophe, the Dubai Land Department and Cost-effective services a blessing in disguise for the Dubai
so it should provide several books. RERA, the company offers tools In response to the challenges of the property market, Valliani feels.
New laws were written, existing and services for buyers, sellers, real estate market, the company “Of course, Dubai’s forward
ones strengthened, and legal bodies landlords, tenants, builders, agents provides deliberate transparency looking government has taken good
added more muscle. Things are and brokers, ensuring compliance of all transactions it processes. The care to see that now international
DUBAI REAL TIMES
seemingly back in order, thanks to with escrow regulations. It helps issues of legal ownership, authority best practices are adopted in the
the untiring efforts of government in the framing of contracts that to enter into contracts, registration emirate, and a return to the earlier
bodies like RERA to streamline all comply with escrow rules, holds of deed, misrepresentation, financial Wild West days is quite impossible,”
property transactions and provide cash deposits and cheques of the disclosures, and non-availability of he adds with a flourish.
a legal backbone to contractual buyer until they are ready for release documents in time for a resale or To buttress the fact, he points to
agreements. to the seller at the appropriate time, lease, are eliminated when using the a comparative chart of five countries,
Enter enTrust & Title into this offers advice to all interested parties company’s enTrusted Settlement proving that the UAE has one of the
new scheme of things to lend a at the time of signing contracts, Services. best escrow and title conveyancing
helping hand to those seeking checks and ensures that contracts Its state-of-the-art technology services, better than even UK and 25
assurance that their money is in safe are not one-sided, and simplifies enables digital biometric US. “And it will only get better.”
COMMENTS
F
ebruary saw Landmark leasing volumes for office
Advisory release its quarterly space remained low
report which focused in Dubai whereas they
on the rating of the top increased in the capital.
developers in Dubai and Abu Dhabi; “Office leasing transactions
the quantitative evaluation carried in Abu Dhabi have slightly
out by a panel of industry revealed increased during Q409
a deficit of Grade A developers in as more companies try
both cities. Low ranking developers to settle in the local
will contribute to the ongoing price market. This follows two
divergence within the asset classes consecutive quarters
in both markets. during Q2-Q309 during
Ms. Jesse Downs, Director of which the office market
Research & Advisory Services, slowed considerably,
Landmark Advisory, explains “To date, particularly during
much of the supply already delivered the summer months,”
was built by master developers, explained Ms. Downs.
which rank higher. However, these “The rent levels for
developers constitute the minority the marketing and primary market According to Ms. Downs, office space in Abu Dhabi are likely
of the total pipeline of units within sale of the unit. In some cases, residential leasing in Dubai has to keep declining as more supply
the next several years. The single- developers have not delivered any also regressed: “Average villa rents is delivered and landlords become
asset developers currently building projects locally. In this case, they are declined 2.2 per cent while average increasingly flexible in order to
the bulk of the forthcoming graded based on the anticipated apartment rents declined 3.0 per guarantee good occupancy rates,”
supply have a significantly lower quality of their projects,” continued cent. In select new residential areas, continued Ms. Downs. “Quality and
rank and may suffer further credit Ms. Downs. apartment rents have increased location will determine whether
downgrades as their product is Turning to residential sale trends which is primarily due to all available rents hold, and poor quality units
forecasted to overpromise and in Dubai, “While villa prices remain residential units having been in areas such as Tourist Club Area,
under deliver. This phenomenon unchanged on average, there is a handed over recently. This type of Electra Street and the east side of
will create a bifurcation, a dividing variance of pricing emerging based marginal rent increase usually follows Salam and Hamdan Street are likely
into two, between integrated, on location,” explained Ms. Downs. apartment deliveries, propelled to be the hardest hit.”
high-quality units and those poor “Sale prices for villa communities by gradual occupancy gains after In Dubai, commercial sales
quality units within fragmented along Sheikh Zayed Road – which handover.” and lease rates declined. Analysts
communities where many builders we refer to broadly as coastal Landmark predict that rents are found that volumes have remained
DUBAI REAL TIMES
have postponed their developments communities – have increased likely to keep declining throughout extremely low with existing sales
indefinitely.” while inland communities have Q1 2010 as more supply is handed activity primarily in Jumeirah Lakes
The evaluation was based on decreased. over and landlords become Towers.
three basic criteria: product quality, As indicated in the company’s increasingly flexible: “We expect “We expect pricing in both the
customer service, and overall latest findings, location and quality continued relocation from Abu residential and commercial real
perception. are driving apartment prices; while Dhabi to Dubai, which will put estate markets to bifurcate based
“Product quality refers to average prices decreased, select further downward pressure on on quality. This will become an
each individual developer’s track communities, including Palm Abu Dhabi rents,” summarised Ms. increasingly critical factor in the local
26 record and ability to deliver the Jumeirah and Downtown Burj Dubai, Downs. real estate markets,” concluded Ms.
product quality promised during experienced slight increases. In terms of commercial property, Downs.
COMMENTS
I
f you ordered a 12” pizza and it So what can you do if you have
only measured 10” when it was 300 square feet of floor area less than
delivered, you would probably what you paid for? Firstly, read your
be annoyed, but do nothing contract, it may well have a clause
about it. However, when it comes that refers to floor area discrepancies
to buying an off plan property and have provisions for refunds and
of, say, 1,000 square feet and only additional charges after threshold
receiving 700 square feet of floor limits have been passed. However,
area which you can furnish, most this is not important, because this is
purchasers would rightly be very now covered by Dubai law.
upset, especially when the price has The most important point is the
been calculated on the whole floor method of measurement used in
area, even the parts that you cannot
use. determined by the seller and If you feel unhappy with the floor
Most developers are committed no method of measurement area that you have received, Law
to keeping customers happy, but is specified. 13 of 2008 will help you to some
occasionally there seems to be There is no one method extent. It provides that if the unit
little justification for the difference of measurement that is turns out to be larger on completion
between the floor area sold and that recognised by the UAE the developer may not claim the
delivered, and some purchasers feel authorities, so where there difference in value, and if the unit
they have been unfairly treated. is a dispute, the method turns out to be smaller then the
The root of the problem may of calculating the floor developer must compensate the
lie in the differing methods of area is open for argument. purchaser for the difference, unless
measurement that the authorities Chartered Surveyors adopt it is marginal.
use in calculating the built up area the methods of measurement The problem is that where there
(BUA) of a building and the permitted set out in the RICS code of is a discrepancy, unless the method
plot ratios. These differ between the Measuring Practice, which of measurement is clearly described
authorities and have also changed provide clear guidelines as in the contract, there will be an
over time. For example, a balcony to how each unit should argument over what method to
enclosed on less than two sides is be measured. The floor area adopt. In the absence of any UAE
not usually counted as floor area for determining the floor area. Some adopted under this method will not standard you are advised to have
BUA calculations, whereas one that contracts describe carefully what include communal corridors, parking your unit professionally measured by
is enclosed on two sides does form is included in the floor area e.g. spaces or common staircases and a Chartered Surveyor using the RICS
part of the floor area. Corridors lift partition walls, external walls and often the floor area measured by code of measuring practice - and
shafts and stairwells can also form balconies, etc. however, most do not. this method will be less than the use this certificated area to discuss
part of these calculations. Often the final floor area of the unit is area quoted by the developer. the issue with the developer.
DUBAI REAL TIMES
27
COMMENTS
Trend predictions
By Mohanad Alwadiya, Managing Director of Harbor Real Estate
T
o the question: “What will focus that emerged during the What are the best properties for
be the most prominent second half of 2009 is the investment investment, selling, leasing?
trends in Dubai’s real estate in income producing assets with the There now exists a greater range
industry in the future?” prime consideration being yield. of choice and buyers can succeed in
I reply that short term investors In today’s environment to try and obtaining true value and quality in
and speculators were hit with the predict capital appreciation is very the property they seek to purchase.
‘perfect storm’ last year. Those difficult and, while in the long term It is now that the fundamentals of
who were taking the longer term property bought today will certainly purchasing or leasing real estate
view and had planned their cash appreciate, the market is too come to the fore; location, quality
flows accordingly have been able volatile to start predicting capital construction, infrastructure, return
to weather the storm; those who appreciation rates. on investment and yield.
were speculating, hoping to spin Overall, many buyers still The most sought after assets
the property for a short term gain, believe that real estate is a lucrative today are the yield producing
got caught in the storm; while those investment option. People want assets as they offer investors an
that sold prior to mid 2008 left town to take the opportunity of owning opportunity to enjoy annual yields
unscathed. sellers. We anticipate this trend to their family home or take advantage that remain higher than the global
During the second half of continue in 2010 and we also expect of the investment opportunities that average yields.
2009, the market witnessed the more end user demand will flow emerged in the market today. The The best assets to invest in are
emergence of institutional and into the market once lending starts demand is there, it just needs some residential units within completed
private investors that were focused again. liquidity to enable the conversion of developments and established
on acquiring assets from distressed Another noticeable investment intention into transaction. communities that offer its residents
(owners and tenants) a rich lifestyle
experience.
In addition, the current attractive
price points and the overall low
supply of villas compared to
apartments (estimated at 13 per cent
of the total residential units), offers a
safer and more robust investment
opportunity for investors.
When it comes to offices and
retail, these two asset types were
affected by the slowed commercial
activity and the expected high
supply. Hence this had a direct
impact on the appetite of investors.
Having said that, there are some
fantastic investment opportunities
in both asset types where some
office or retail properties are rented
DUBAI REAL TIMES
process. But it is definitely an option recovery will be evident in the next The issues can be summarized as institutional buyers
for long term investors. few quarters. follows: • The strength of the US dollar /
Of course, there are fundamental • Inevitable and unavoidable Dirham and its effects on foreign
What are the difficulties faced by economic issues to be addressed, exposure to the rapidly investment
the real estate industry? some of which are central to deteriorating global economic • Corruption and transparency and
The industry is experiencing some hastening an overall economic condition its effect on investor confidence
serious growth pains but will recovery which, in turn, will aid • The inevitable downturn of In our opinion, the biggest issue
recover. We believe we will see a the real estate recovery. The good domestic consumption and low remains the lack of availability of credit.
much improved level of activity news is that the Dubai and UAE confidence levels of investors There are buyers who are willing to
in the second quarter of 2010 as government are already addressing • Scarcity of credit and funding invest in their future, but the availability
the world economy strengthens, these issues. sources for private and of funds is the major inhibitor.
credit becomes more accessible
Signature villas on Palm Jumeirah
and Dubai re-launches itself as a
preferred place to do commerce and
trade. The launch of Burj Khalifa has
helped strengthen Dubai’s global
position as an innovative and leading
destination and the media coverage
it obtained definitely helped boost
the awareness of Dubai.
The recovery phase will need to
be driven by fundamental and solid
economic drivers, not speculation.
Population growth, driven by an
increase in commercial activity will
be the primary determinant of a real
estate recovery as Dubai attracts
new business entities, investors and
owner occupiers who have a long
DUBAI REAL TIMES
D
o you remember the fuss full electric power has now been by the Chairman, Managing potential for developing business
that went on when villas installed to all villas and buildings Director and representatives from tie ups between Dubai based
on new projects such as the developers have confirmed. To each department, the awareness companies such as Empower and
Arabian Ranches were date 385 villas have been handed exhibition had presentations on Swedish technology vendors. He said:
deemed fit to hand over to owners, over to homeowners, out of a total the latest technologies and the “Empower played an instrumental
who had been desperately waiting of 961-units. Already this year, safety mechanism adopted by the role in Dubai’s transformation towards
for their completion date promises handover has been completed in company, while there were also live a more sustainable ‘green’ society. We
to be kept, usually to no avail? two of the seven villages that make- demonstrations of various WMS firmly believe that there is an obvious
Eventually, when money had been up the luxury villa community, with equipments and products. potential for collaboration between
spent on renting and extending new residents moving in every day. The waste management it and the many Swedish companies
leases almost on a monthly basis, “All homes and buildings products and services featured which focus on Environmental
many owners decided to move in Victory Heights are now fully were collection and transportation Technology.”
connected to Dubai’s main electricity of solid and liquid waste by various Bin Shafar said: “Empower always
supply. We have been working very types of vehicles, waste collection looks at solutions from world class
hard with DEWA to ensure that receptacles and vehicles, waste companies and we believe that we
connection and supply are in place compaction equipment, and need to have more joint ventures
and 100 per cent efficient for all our recycling receptacles. There was also with top-notch organisations. Just
current and future residents,” said a special presentation about Dulsco’s a month ago, we inaugurated
Yasser Al Raee General Manager at on-shore and off-shore tank cleaning Empower-Logstor Insulated Pipes
Victory Heights. process, particularly for tanks used Systems (ELIPS), UAE’s largest pre-
Victory Heights surrounds the for petroleum products, chemical insulated pipe manufacturing facility,
18-hole The Els Club golf course, products, sewage, freshwater and in Jebel Ali.”
designed by World Champion golfer sea water. He added: “We succeeded in
Ernie Els. Villas in the development Dulsco’s Waste Management building world class district cooling
are built in three different styles; Services, the first waste infrastructure that is considered an
authentic Spanish Andalusian, bold management firm in the UAE to be ideal economic and environmental
Yasser Al Raee Mediterranean, and classic European Integrated Management Systems solution for residential and
styles. certified, handles hazardous and commercial units, offices and hotels. In
into their completed homes non-hazardous solid waste in Dubai, residential units are becoming
in the middle of uncompleted Integrated waste management compliance with strict municipal and increasingly aware of the importance
surroundings. Electricity was Dulsco has recently concluded environmental provisions. of using district cooling system as
provided by generators, often an awareness exhibition at the an alternative to conventional AC
topped up by private purchases of Dulsco Events Arena showcasing Empower and Swedish systems, leading to energy saving and
these machines, and the only means its Waste Management Services’ technology vendors environment conservation, as well as
of telephone communication was by (WMS) products and equipment, lower operations and maintenance
a mobile phone. which was part of an initiative The Swedish Ambassador to the UAE, costs. This is in sharp contrast to lower
This is no longer to be the fate of to enhance cross-selling across HE Bruno S Beijer, has said that the awareness of its importance in other
residents at Victory Heights because different business units. Attended current situation offers tremendous parts of the Middle East.”
DUBAI REAL TIMES
30
Ahmad Bin Shafar, CEO of Emirates Central Cooling Corporation (Empower) talks Dulsco management at the Dulsco campaign
green energy with The Swedish Ambassador to the UAE, HE Bruno S Beijer
EVENTS
O
n the second day of million. specifications, to regulate building energy in Dubai, within the green
WETEX 2010 (Water The second contract is with Areva standards for achieving efficiency buildings framework. In the initial
Technologies, Energy T&D SA Dubai to supply, install, test in the use of electricity, water and stage, all new buildings will be
and Environment and commissioning of three 132/11 renewable energy, as part of the required to comply with the codes
Exhibition) Dubai Electricity and KV Substations in various areas, ‘Green Buildings Project.’ and regulations and incorporate
Water Authority (DEWA) celebrated including Dubai Investment Park, HE Saeed Mohammed Al Tayer them in their construction designs.
the signing of six new contracts Jebel Ali Industries Area, Mutina, said: “The Authority plans to issue Dubai will be the first city in the
for projects in electricity and water Kifaf and other places, at a cost of the Green Building power and Middle East that officially applies
sectors, enhancing the infrastructure Dh1.030 billion. water regulations in April, 2010, the green buildings standards
of DEWA facilities and raising the The third contract with Ducab - for ensuring the efficient use of on its residential and commercial
efficiency of the networks to meet Dubai to supply 11 KV XLPE power electricity, water and renewable buildings.”
the growth in demand to services. cables –800 kilometres, the value of
HE Saeed Mohammed Al Tayer, which is Dh260 million.
The Fourth contract to be
entered with Ghantoot Gulf
Contracting to supply, install,
test and commissioning of
Glass Reinforced Epoxy Water
Transmission Pipelines and
associated works at various
locations (167 kilometres), with
a total cost of Dh820 million.
The Fifth contract is with
M/S Saudi Modern Co. (Riyadh
cables) Dubai to supply, install,
test and commissioning of
132 KV cables to 132/11 KV
Substations, to the value of
Dh300 million. 12th Water Technologies, Energy and Environment
The sixth M/S Siemens Exhibition (WETEX 2010)
to supply, install, test and Held from March 9 to 11, the show emphasised the importance of
commission Mamzer Beach adopting best standards in conserving the environment as well
400/132 KV Substations, at as discussing latest techniques in energy sectors with specialised
HE Saeed Mohammed Al Tayer
Dh470 million. companies from around the globe. It stressed on the need to take
MD and CEO, DEWA, signed the At the end of the celebration, serious steps to reduce emissions of greenhouse gases. It explained
contracts on behalf of DEWA and HE Al Tayer emphasised the the importance of quick action to reduce emissions of carbon di-
its partners, including contractors significance of completing these oxide, which has increased by 40 per cent between 1990 to 2008.
and senior officials in the companies projects at the contractual dates The show discussed the phenomenon of climate change and rising
which were awarded the contracts in order to enter them in service in global temperatures, calling for the urgent need to develop a new
for execution of those projects. the right time. He assured guests framework to combat global warming. It also discussed ways of us-
HE made it clear that the six that DEWA will extend all possible ing ‘green’ technology to mitigate the impact of global warming.
DUBAI REAL TIMES
contracts were for major projects facilities to contractors to insure The number of ministries, municipalities, government depart-
to the amount of Dh3.130 billion the proper completion of these ments and public service associations participating at the show
covering both electricity and water projects, putting the environmental exceeded expectations, with more than 490 companies, compared
sectors. considerations that are set by DEWA to 450 companies last year, representing establishment from 23
The ceremonies for signing at the top of its priorities. countries.
contracts started with the first The same week saw DEWA launch WETEX not only represents technologies, but also adopts and
contract, to supply, install, test its Green Building Regulations - supports the issues and topics in the field of sustainable develop-
and commission three 132/11 KV Stage II, jointly developed with ment and conservation of the environment.
Substations with AAB Industries Dubai Municipality, comprising 31
LLC -Dubai to the amount of Dh250 of a new set of guidelines and
FOCUS
M
ore project While PM methods are used to The Mohammed Bin Rashid Trading, and Bin Ghalita Trading.
management (PM) properly manage projects, PPM Establishment for SME Development It is also home to a number
expertise is needed enables organisations to select the (MBRE), one of the Department of real estate and contracting
to sustain trillion- right projects, which is a very critical of Economic Development companies including Speed
dollar project-driven developments activity given today’s tight markets. establishments, has said that more Performance Building Contractors,
across the MENA region. The Middle We want to promote these two than 30 companies from the public Majesty Agriculture Investment and
East’s construction sector alone is concepts so that the region can and private sectors moved their Union Square Real Estate. Services
expected to post an annual growth excel in both project selection and operations to the premises of its companies such as Appollo Flight
rate of 3.5 per cent over the next five execution,” said Bassam Samman, pioneering project ‘The Business Centre and Blue Water Tourism,
years to place ahead of Europe and CEO and Founder, CMCS. Village’, Deira. Launched in the Images Digital, Renaissance
North America and third behind Asia. The company has been engaging summer of 2009, the village aims to Translation & Business Services,
The Gulf, in particular, has around in similar education-oriented provide support, guidance and all New Generation Business Services,
$1.35 trillion worth of active civil initiatives, such as its recent signing levels of facilitation to make it easy Abdul Rahman Naseer Advocates,
building projects requiring the latest of a Memorandum of Agreement for businesses to start and grow. and Moora Foods (Subway) are also
PM technologies and techniques. with American University of Sharjah Among the first organisations housed here.
Collaboration, Management and (AUS) to train AUS students and that moved its operations here In addition to the companies
Control Solutions (CMCS), a Portfolio alumni on Primavera software and are Mohammed Bin Rashid which have already moved in, a
Project Management (PPM) firm its applications. Establishment for SME Development, number of public and federal bodies
in the Middle East, has launched Collaboration, Management and the German Emarati Joint are moving there soon, including
an educational campaign to train and Control Solutions has been Council for Industry and Commerce. the Dubai Department of Economic
businesses and individuals from connected with Oracle for more The Village also hosts a wide range Development, UAE Ministry of
across the region on advanced than 25 years. of general trading companies Foreign Trade, Dubai Events and
tools and skills to meet demand including Aswaaq LLC, Seureca Promotions Establishment, Dubai
for world-class PM capabilities. The Business Village for SMEs Overseas, Green Inovacation LLC, Export Development Corporation,
company is the first organisation to Provides fully integrated services Wall Green Trading, Scrapa Shoes and Business Incubation Centre.
be authorised by Oracle University, and solutions for entrepreneurs Trading, Caliber ME, Raj Associate, The Business Village offers a
the global educational arm of and existing small and medium Marzouq Cosmetics, Orasia General comprehensive platform for trade,
enterprise software company Oracle Enterprises (SMEs) Trading, GTF General Trading, M2 business and social activities. It
Corp., to deliver certified training
programmes in the Middle East.
“As one of the world’s most
project-driven markets, the MENA
region has to ensure that it has
access to the best PM tools to
maintain its competitive edge.
DUBAI REAL TIMES
32
Bassam Samman Business Village in Deira
extends on an area of one million poverty and addressing the various throughout the entire relocation rocks with an average weight of five
square feet and includes commercial challenges of the developing world. process, is to thank for the positive tonnes were moved and now cover
office space, business centre and He was appointed to the Cabinet results, master-developer Nakheel an area of 6,560 square metres.
conferences and meetings rooms. as Secretary of State for Trade and has said. The rocks, which cover “The coral translocation area has
The project includes a mixed-use (not Industry in 1998, where he was attracted a number
sector specific) business incubator, responsible for the introduction of species of reef
surrounded by commercial and of the National Minimum Wage. fishes that are less
business organisations that are He is honorary Chair of Policy common elsewhere
directly engaged in supporting Network, a European and in that area,
and providing services to foster international think tank.” including a number
entrepreneurship and SMEs. of commercially
Coral relocation important species,”
Touring the tower Responding well to its new Burt said.
The Rt Hon Lord Mandelson tours habitat are more than 5,500 The typical
At the Top, Burj Khalifa tonnes of coral transported to method of removing
The Right Honourable Lord Peter the breakwaters of The World. coral involves the
Mandelson, UK’s First Secretary of A new method, which involves use of crow bars,
underwater drills
the size of a football pitch, were and cranes.
(From right to left): The Right Honourable Lord Peter Mandelson and
moved from Dubai Dry Docks to 27 The developer’s environmental
Mr Abdulla Lahej, Executive Director, Dubai Project Management,
Emaar Properties, tour At the Top, Burj Khalifa kilometres of The World breakwaters team developed the new technique,
and are now home to 18 species in which a bolt was drilled into each
of coral and more than 30 species rock then attached to a sling to
of fish as well as sea-squirts and hoist the rocks to a depth of three
urchins. metres below the water surface and
Initial findings by Dr John Burt attached to a transport barge.
of the Natural Science and Public “The methods used are a world
Health department at Zayed first, and one year on have been
University showed that one year hailed by independent parties as a
on, 93 per cent of the transported resounding success,” said Brendan
marine ecosystem is thriving. Jack, head of sustainability and
“A project on this scale has environment, Nakheel Northern
never before been attempted and Projects.
I am delighted with the results
we are seeing,” Burt said. “This
Piling and deep
marks an important step in our
understanding of the methods of foundations
coral translocation.” Region’s biggest Geotechnical
The coral was relocated between summit gathers over 200 global
State, Secretary of State for Business, keeping the coral underwater April and June 2008. A total of 1,129 experts
Innovation and Skills (BIS) and Lord
President of the Council, toured
At the Top, Burj Khalifa the world’s
highest observatory deck with an
outdoor terrace on Level 124 of Burj
Khalifa, the world’s tallest building.
He was accompanied on the tour by
Mr Abdulla Lahej, Executive Director,
Dubai Project Management, Emaar
Properties, the developer of Burj
Khalifa.
DUBAI REAL TIMES
and academicians-led sessions campaign was held in coordination Momentum Logistics, a subsidiary and trailers, which has grown to
or a segment on case history with the Building Inspection Section of international port management be the one of the largest trucking
presentations. at Dubai Municipality for identifying company, Gulftainer, has continued operations in the region. The fleet
Some of the industry experts sites. its expansion with the opening of its comprises 122 tractors and over 240
who took the podium on Day-2 Zuhoor Hussein Al Sabbagh, first Dubai office. trailers, including specialised low
include Professor Jean-Louis Briaud, Director of Public Health Services Situated in Dubai Cargo Village, bed trailers and tipping chassis. The
Dr. S. K. Ghosh, member of the Department said that a special team Momentum’s Dubai office is intended division has also relocated to new
American Codes for Seismic Design, was formed to combat rodents. to enhance and extend the service offices and opened a state-of-the-
34 Salah Al Dilimi, Civil and Structural “The team, which was given priority levels it offers to customers, and art vehicle maintenance and repair
Technical Manager, Roads and of tasks to address the sites, took forms part of the company’s national facility within the SICD.
FOCUS
S
unday March 7 saw His entertainment projects of technical the occasion of the 30th Plantation neighbourhoods and managing
Highness Sheikh Hamdan excellence which has been carried Week, including the opening of them well lead to good aspects
Bin Mohammed Bin Rashid out according to the global best eight public parks. of social development such as
Al Maktoum, Crown Prince practices in the establishment of “Four of these parks are pond bringing together family life, a sense
of Dubai and Chairman of Dubai public parks. He said the park is built parks, a first-of-its-kind public parks, of community and looking after
Executive Council launching the at a cost of Dh22 million with a total which Dubai Municipality has set up your environment.
at Al Nahda, Al Barsha, Al “In this sense, projects like this
Quoz and Al Qusais-3,” undertaken by Dubai Municipality
Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum launched the activities
of the 30th Plantation Week by opening the newly built Pond Park at Al Barsha said Amiri, adding that strengthen the security
the other four parks infrastructure of the Emirate of
will be residential or Dubai in all respects. Creation of
neighbourhood parks. public parks of this advanced level
Two of these pond of design and implementation is
parks, Al Nahda and Al one of the complementary and
Quoz were inaugurated necessary elements to achieve the
on the same day, Monday, strategic objectives of Dubai Police,”
by Lt. Col. Dhahi Khalfan said Tamim.
Tamim, Chief of Dubai He praised the approach taken
Police and Mohammed by Dubai Municipality in the
AbdulKarim Julfar, establishment of such extensive
Assistant Director General parks with all amenities, ponds,
of Dubai Municipality green spaces, walkways, pools and
for Corporate Support flowers of every colour.
Services respectively. Brigadier Mohammad Saeed Al
Lt. Col. Dhahi Marri, Deputy Director of Community
Khalfan Tamim, said Services Department, Dubai Police
that the creation of said his department has long been
parks in residential maintaining a close relationship
36
Garhoud Park
spreading of green areas in Dubai and entertainment activities this area. provided an automatic irrigation
and the provision of resorts, public throughout the year, and in 2009, He said 25 to 35 such projects system suitable with a success
parks and recreational facilities with the six major parks in Dubai (Mushrif, are implemented annually and rate of almost 100 per cent using
the best design specifications and Safa, Mamzar, Creek, Jumeirah landscaping designs that are used treated wastewater,” said Lootah.
operate them according to the best Beach, Zabeel) managed to attract are compatible with the nature “The Municipality has provided
international practices to the needs about 5.7 million visitors while the of these streets, as the streets in the opportunity to enter free
and expectations of the society and number of zoo visitors stood at the markets differ in designs for of charge to all categories of
in all areas of the Emirate of Dubai,” 327,000. The parks and recreation residential streets the external roads residential community parks and
Lootah said. sector witnessed considerable that link the city to other cities. public squares. It is also committed
He recalled that in the production development over the past three He continued: “We depend on to the establishment of events
of saplings the Municipality has been years in terms of developing existing plants produced in our nurseries and activities in these parks.
able to develop the productivity of its parks and upgrading their facilities since 1986, and tourists in Dubai can The role of Dubai Municipality
nursery in recent years by adopting and adding new facilities,” he said. tell the difference between streets in the plantation, greening and
the best scientific methods in the Lootah stressed that as far as by the plants there as each street landscaping of the parks of
field of plant augmentation through greening projects and tree planting has a special design and special schools, colleges, mosques and
its nurseries at Garhoud, Nad Al and beautifying the streets, the city plants. For example, in some streets government departments and
Shiba, Mushrif, Al Safa, Al Mamzar, Sih is taking huge steps consistent with geometric shapes are used.” diplomatic missions in Dubai
Al Silm and Warsan with production the aspirations of the Municipality in “The Horticulture Section cannot be ignored,” he concluded.
of more than 33.8 million saplings in
2009. The newly opened Al Sufooh Park
Lootah added that in the
DUBAI REAL TIMES
R
ecently some hotel offerings Laguna Tower Lofts Client Management with IFA HR, make a private residence club feel
were made to the public, adds: “Private residence clubs are like a second home. For instance,
of furnished, freehold, loft The new one bedroom lofts and among the fastest growing sectors offering complimentary year-
and duplex apartments one- and three-bedroom duplex of the real estate and hospitality round storage, allows us to have
plus a luxurious Private Residence apartments, all equipped with a industries. With the introduction of favourite photographs, essential
Club to IFA Hotels & Resorts’ (IFA HR) bespoke furniture package, not only the high-end Laguna Tower Private items and sports gear put in place
Laguna Tower. Both products will offer contemporary living space, but Residence Club, second home at a moment’s notice.”
be serviced and managed by the are also designed to be effortless shoppers now have an alternative If owners choose not to use
onsite Mövenpick Hotel & Residence property investments. Investors in which they buy only what they all 21 of their entitled days in the
Laguna Tower Dubai, making this a choosing to rent their apartments will use, while still investing in Laguna Tower Private Residence
mixed-use development. on either a short or long-term basis an appreciating asset. Of course, Club, they may exchange their days
Werner Burger, President and can leave everything from marketing ultimately, what owners buy is a for stays in luxurious properties
COO of IFA HR, said: “We saw an to maintenance in the capable and luxury holiday they can enjoy year around the world through the
excellent opportunity to maximise reputable hands of the onsite hotel after year.” IFA Collection. Through its master
Laguna Tower’s customer offering operator. Additionally, owners and Ownership in the Laguna Tower affiliate agreement with The
by applying our proven formula of their guests have access to all of the Private Residence Club includes a Registry Collection programme,
mixed-use developments. Its prime hotel’s facilities enabling them to number of outstanding benefits the IFA Collection offers more than
location near the metro and in the enjoy a five-star lifestyle. ranging from a concierge who 160 exchange properties ranging
heart of ‘New Dubai’ made it a natural will handle dinner reservations or from tropical island villas in Belize
choice to offer city-lovers a full-
Laguna Tower Private arrange for a private chef, to picking and Disney beach resorts in the
service hotel, a variety of residence up groceries, providing room service, US to white-washed mansions
options, hotel condominium units Residence Club nightly turndown and maid’s service. in Scotland and opulent country
and a private residence club, all Each home in the Laguna Tower Additionally, owners enjoy an array clubs in the Canary Islands.
under one roof. It has always been Private Residence Club offers owners of quality food and beverage outlets Burger concluded: “We recently
our goal to ensure our customers a luxurious and convenient holiday within the hotel, just an elevator launched private residence clubs
have a variety of investment, home serviced by a five-star hotel ride away. Also within the building in Pattaya, Phuket and Bangkok,
residential and lifestyle options operator. The beautifully appointed and managed by the onsite hotel enhancing the IFA Collection
available across our portfolio.” and furnished loft and duplex units are a state-of-the-art fitness facility, offering across Thailand. Moving
The 42-story Laguna Tower is are divided into saleable private spa, two swimming pools, 24-hour forward, we see a great strategic
situated at the apex of the Jumeirah residence clubs interests. These security and two levels of basement opportunity to broaden the
Lakes Towers development. While interests entitle owners to enjoy parking. geographic reach of the IFA
the first eight floors of the building a minimum of 21 days per year at Craig Smith, General Manager, Collection through the continued
comprise a five-star hotel, the top the Club, as well as unlimited use of Mövenpick Hotel & Residence Laguna development of private residence
floors now feature the loft and additional time available. Tower Dubai commented, “It’s the clubs across our resorts and
duplex apartments and the club. Piaras Moriarty, Vice President simple, yet important gestures that properties around the world.”
DUBAI REAL TIMES
39
INTERIOR DESIGN
Contemporary
wallpapers for
inspiring décors
Award-winning Swedish wallpaper company brings its products to UAE
E
CO BoråsTapeter – the design brand in the UAE.” productivity. so surprised that I won, but delighted!
Swedish wallpaper and wall At the other end of the design This was a great experience for me,
coverings company have
Office designers of the spectrum, The Office Exhibition also and was the first time I have really
launched their first Shop-in- supports tomorrow’s generation of had to think about the practicalities
shop in the UAE at Danube, Dubai future design stars through the Student of my designs. Winning has given
Festival Centre, where customers can The Office Exhibition, sponsored by Loft Design Competition, sponsored me much more confidence, and I am
virtually simulate wallpaper designs Hewlett Packard, opened on a high by Frezza SpA. This competition sure that it will help me enormously
within the design centre, to help in early February, with key features provides a unique opportunity for in my future career.”
them create their perfect home or at the show, including The Future students to get direct exposure to The winners’ prize is a week long
office interior. Office, The Office Awards and The the industry, and teaches them how trip to Milan, Italy, where they will be
ECO offers young, trend-conscious Student Loft Competition proving to to create designs that not only look able to visit the famous international
designs that appeal to those with an be a great success. good, but which are feasible and can design fair, as well as Frezza’s office
eye for detail – whether it be for the The Future Office is a new feature be reproduced. in Venice where they will be able to
home or the office. The full range to the show, and provides a visionary Students from four local get a real feel for how the company
includes exclusive flock wallpaper and peak at what offices will look like Universities competed to design a works.
bold wall murals, with the Eco range in years to come. It is the result of a meeting table or area, a workstation, Sinead Bridgett, Show Director,
including award-winning designs, design collaboration between some a reception desk or an office lamp. The Office Exhibition, said,
such as the Elle Decoration Design of the leading companies in the Success went to the girls this year, “The response to the Student Loft
Award for ‘London’. Being stocked region – Mazari Consultants, Frezza who scooped all three awards: competition was great, and it was
in the UAE are Line, Velvet, Feeling, SpA, Quantum Glass, 3D Lux, BAAJE, Farzaneh Eslami from American encouraging to see so many design
Design 2 and Design 3 – as well as In Out Space and Skad Media, in University of Dubai won an award students taking part with such
the Metallic collection, which is used addition to Hewlett Packard who are for her ‘Armed’ lamp; Aahd Alanqar enthusiasm. We know from previous
to match the other collections. providing state of the art technologies. from Abu Dhabi University for her winners that the award has helped
By contrast, BoråsTapeter offers Designed with optimum employee ‘The Strips’ reception desk; and Israa them in their career by providing
classic, contemporary wallpapers health, safety, motivation and Mahmoud from Ajman University for access and exposure to leading design
for inspiring décors and is Sweden’s productivity in mind, the futuristic her ‘Serenity’ workstation. companies, and I am confident that
oldest and most popular best-selling design combines sleek desks with Speaking about her award, this years award winning students
brand of wall coverings. The brand complementary laptops, unique Farzaneh Eslami, AUD, said, “I am will go on to achieve great things.”
continuously develops their designs glass panels which
to satisfy the market’s interest in can switch from
designs, colours and textures and being transparent
aims to be an inspiring role model in to opaque at the
the wallpaper market. Being stocked flick of a button, and
in the UAE from the BoråsTapeter energy-saving light
DUBAI REAL TIMES
Soaring upwards
By Linda Benbow
H
aving lived so long in plot faces the infamous traffic lights external facade up to the 25th famous brand-name hospitals from
Dubai I remember when which every Greens resident, Salik floor. Fit-out works are also well in various countries setting up there.
it was just a few buildings dodger and early-morning traffic progress. Moorfields Eye Hospital from the
and a lot of sand. The radio presenter knows. Marwan Mansour, the CEO of UK is there and so too is the Mayo
place has faced a reversal since then Realty Capital Middle East FZ LLC Realty Capital, confirmed: “There has Clinic (USA), Great Ormond Street
and the buildings that I first heard has completed the concrete casting been a growing sense of excitement Children’s Hospital (UK), the German
about, and then, secondly, saw of the 30th floor slab of its centerpiece and pride as we draw nearer to the Heart Centre, Dr. Sulaiman Al-Habib
being prepared for construction i-Rise office tower project in TECOM completion of i-Rise. We worked Dubai Properties Group has
have risen fast, then slowly and now site C. This marks an important really hard with the contractors to renewed its agreement with Al Basti
steadily. Yes, many of the projects milestone as one of the largest office ensure that the project stayed on & Muktha (ABM), a leading building
are ‘on hold’ to be thought about at tower developments in the region track despite the challenges that and civil construction company
a later date; but it is nice to see the draws near to its completion date have been experienced in recent in the UAE, to complete Al Khor
ones that I initially heard about with expected in November 2010. The times. When we started this project, Hotel and Residences here. The
so much passion and gusto now tower is 36 floors high and contains we vowed to protect the interest of towering five-star development,
rising taller and taller. corporate and executive offices as all investors and stakeholders.” located in the heart of DHCC Phase-l,
The first office tower block with well as retail space on the ground I remember when the concept has already achieved 60 per cent
a funny name registers firmly in floor with an approximate total built- of Dubai Healthcare City (DHCC) completion. The community will
my brain. i-Rise tower was to up-area of 1.9 million square feet. The was first aired to the public, who consist of two towers, a 34-floor
be built on a corner site in Barsha tower will have 19 high speed lifts, were not really interested at the hotel to include 444 rooms and a
I was informed in 2005, with a some call them elevators, and 2,300 time, as there was too much else 43-floor apartment building with 405
vague reference to ‘special’ internet parking spaces. going on, what with making profits serviced apartments. It will feature a
capabilities. It turns out that the All electromechanical works of flipping apartments and villas podium with six restaurants, a spa,
area was in the process of being i-Rise are now being completed before they were even built (pay a gym, swimming pools and other
turned into a Tecom free zone – through the lower levels up to 27th Dh5,000 deposit to secure a plot, amenities and include a car park
an extension of Media City, I now floor. The contractor has also started then sell within the year to someone accommodating 1142 vehicles.
know for certain. And the corner placing aluminum cladding on the on the waiting list, or someone who Khalid Al Malik, Group CEO,
didn’t want to Dubai Properties Group, said: “The
I-Rise tower join a waiting list five-star facility will service the
– before having Dubai Healthcare City communities
to pay the first including patients, relatives and
instalment. It was tourists, along with our corporate
a good scheme, clients.”
everyone did It was a lovely sunny day, with
it. In USA there no swell under the waves when a
were even books group of journalists were taken on a
written telling Nakheel boat trip to see the islands
you how to of The World, now that they were
flip, one of the standing proud of the briny sea.
DUBAI REAL TIMES
F
ebruary saw Nakheel Managing Director, Nakheel square feet of living space. The colours and cobbled driveways
announce that it has Development Projects said: “We development is complemented by surrounded by tranquil desert
received handover have been working closely with a number of townhouses which are landscape. The community includes
of the sixth and final world leading contractors Shimizu located along the marina fronted 80 ground level two bedroom villas
tower at Marina Residences, Corporation during the past few promenade. from 1,785 square feet, 80 first floor
Palm Jumeirah, from Japanese years to deliver this exceptional Palm Jumeirah is now home to villas from 1,829 square feet, 50 three
more than 12,000 residents, however bedroom villas from 3,483 square
the project is still ongoing and the feet and 50 four bedroom villas from
next five to six years will see the 3,992 square feet.
island become one of the world’s Khalid Al Malik, Group CEO of Dubai
premier resorts, offering a number of Properties Group said: “Al Waha is an
top-brand named hotels, including important addition to our residential
Atlantis which opened in September portfolio as it demonstrates our
2008, as well as a wealth of retail commitment to delivering a diverse
and leisure choices, offering luxury range of communities in Dubai. We
retail, dining and entertainment are always striving to introduce new
destination. and innovative real estate options that
Last month also saw Dubai address the current market demand
Properties Group (DPG) and Al Waha Villas is designed to
commence the handover of Al meet the needs of the modern
Waha, an exclusive freehold family. In addition, the community’s
community within Dubailand. unique and appealing Mediterranean
Following the successful launch architecture is changing the desert
of the adjacent Layan community, landscape.”
DPG welcomed homeowners to Al Waha is situated close to both
this luxurious enclave of 260 villas Emirates Road and Dubai Bypass,
featuring terracotta roofs, warm and within minutes of the retail and
Khalid Al Malik, Group CEO, DPG and Sahar Al Ansari, DPG Development
Director, Al Waha
DUBAI REAL TIMES
Marina Residence
contractor Shimizu Corporation. development on Palm Jumeirah.”
The phased handover of homes at The waterfront development
Marina Residences, located at the features six residential towers
tip of the island’s trunk, began late containing a mix of apartments and
last year, with close to 100 families penthouses. The most luxurious
44 already taking occupancy. penthouses are designed over four
Marwan Al Qamzi, Group floors, providing more than 14,000
restaurant offerings at MotorCity, Local and international art pieces World renowned designer Perla as a long-term investment. It will be
Sports City and Arabian Ranches. that were specially commissioned for Litchi designed the interiors for the managed based on a lease system
The exclusive gated community the corridor area of The Residences project, with Al Mazaya decorating as one of the company’s profitable
will feature round-the-clock security, have also be integrated into the each villa with stunning furnishings. assets.
a clubhouse and community interiors. Business Avenue is located at The economic feasibility of both
centre, with lush landscaping that In keeping with the delivery Jumeirah Lakes and consists of projects were thoroughly studied
will complement the breathtaking and completion of all its projects in three commercial towers catering to according to cash flow schedules,
colours of the Arabian Desert. An Dubai, and after the delivery of 104 the needs of the office sector. Two with the projects being developed
ideal community for families seeking
a respite from the frenetic pace of The Villa
the city.
Burj Khalifa, is readying to
welcome its first residents with the
orientation programme for home-
owners of Armani Residences,
located on levels 9 to 16 of the
tower, currently ongoing. The
interiors of the world-class and first-
of-its-kind Armani Residences is in
the final stages, and finishing work
of The Residences in Burj Khalifa is
progressing at a fast pace.
The hand-over of homes begins
first with the Armani Residences
comprising 144 private apartments
personally designed by Giorgio
Armani. This will be followed by the
much-awaited Armani Hotel Dubai,
which occupies the concourse to
Level 8 and Levels 38 & 39. villas of The Villa project during of Mazaya Business Avenue’s towers through collected sale earnings,
The Residences, comprising 900 the second half of 2009, Al Mazaya were sold in 2007, while the third leaving out the need to use the
apartments, and The Corporate Holding is continuing with the tower will be kept by the company company’s own resources.
Suites, a collection of high- construction and development Business Avenue
end offices, began handover to works of the second phase of the
customers this month. The handover project. The company’s strategy will
programme can take anywhere from also see the delivery of Al Mazaya
two to six months. Business Avenue in the third quarter
Armani Residences is developed of 2010.
through a collaboration of Emaar Located at Dubai Land, The Villa
and Giorgio Armani S.p.A. Personally project is comprised of 520 residential
designed by fashion legend Giorgio villas with modern designs. The
Armani, the one- and two-bedroom first phase of this project, which
suites are spacious, ranging from 100 included 104 villas, has already been
to 200 square metres. completed and delivered to owners,
The interiors of Burj Khalifa, while construction and development
including The Residences, are of phase two, which includes 110
embellished by award-winning villas, has been completed. Delivery
designer Ms Nada Andric of of these units to owners has already
Chicago-based Skidmore, Owings started, and the overall completion
& Merrill LLP (SOM), the architects rate for the remaining 306 villas
of the tower. The design elements (phase three) currently amounts to
DUBAI REAL TIMES
Win a cuddly toy playing hoopla at the fun fair Looking for a pearl in an oyster
DUBAI REAL TIMES
48
JBR’s Covent Garden Dubai Properties Group hosted ‘Heritage Revisited’, an evening filled with traditional activities for Seniors from The Community Centre in Dubai
and Sharjah. Held at the Heritage Village in The Walk at Jumeirah Beach Residence, senior citizens were entertained with a host of cultural
activities including the Arabian horse show, Emirati wedding, traditional handicraft, dances and local cuisine. The traditional evening also gave
them an opportunity to share their own memories of Dubai and to discuss their views on the vast changes and growth that they have witnessed.
49
COMMUNITY
Charitable deeds
I
t was a fun filled exhilarating tance and social cooperation as well ing physiotherapy, rehabilitation, ogy park and the funds raised will
Saturday at Safa Park for the chil- as financial support. I’m sure that occupational and speech therapy in contribute to the centre’s mission
dren of Senses Special Needs today was just as thrilling an experi- addition to various educational and to provide high quality, integrated
Centre in Dubai as well as a ence for the company team as it was entertainment activities. education services and therapies for
team of volunteers from Al Mazaya for students in the Centre. We hope Due to the increasing needs of children with special needs.
the centre, Al Mazaya The launch ceremony was held in
Holding plans to hold the presence of Dr. Mohammed Al
more fundraising Zarouni, Vice-Chairman and CEO of
events going forwards. Dubai Silicon Oasis Authority (DSOA),
Dubai Silicon Oa- and Ahmad Hashim Khoury, founder
sis recently hosted an of Rashid Paediatric Centre, as well
event to launch ‘Dubai as business partners and employees.
Passport’ within its Children from the Rashid Paediatric
premises. An initia- Therapy Centre entertained the au-
tive of Creative Zone in dience with artistic performances.
support of the Rashid Commenting on this initiative,
Paediatric Therapy Dr. Zarouni said: “We are pleased to
Centre, the passport- support the Rashid Paediatric Ther-
like booklet presents apy Center whose noble mission ex-
its holder with special tends to supporting the disabled. In
offers and discounts in contributing to this campaign, DSOA
Dubai and other emir- hopes to reach out to the children at
ates at over 52 outlets this dedicated centre and assist them
comprising F&B, retail, in receiving what is rightfully theirs
entertainment and in terms of education and therapy.
pharmacies. DSO will We also encourage all organisations
Al Mazaya Holding held a Flea Market in Safa Park for Senses Special Needs Centre
promote the passport to initiate similar activities among
Holding when they participated in that our efforts in this regard will among the companies and em- their employees that will lead to the
the Flea Market on 6 Feb as part of encourage the public to engage in ployees operating at the technol- enhancement of the community as
its corporate social responsibility similar activities”
programme. The initiative was or- The Senses
ganised by staff in the Dubai office Centre is a pri-
that collected a variety of items from vate, non-profit
donors for this purpose. These were organisation lo-
then sold to the general public with cated in Jumei-
the proceeds from the day’s activ- rah that relies on
ity going towards the furnishing of donations from
a new residential centre which has the public for its
been built to cope with the ever in- survival. It pro-
DUBAI REAL TIMES
The four day event was adjudged and the winners were:
1. Pre World War I 9. Public’s Choice
Mohamed Al Fahim; Morris Oxford 1914 Marzooq Al Mansoori –
2. UAE Award • Chevrolet Impala 1959
Ahmad Al Jarwan – Sharjah Musuem; 1931 Auburn Speedster • Tani Rienben – Triumph TRA3
3. Dubai Award • Al Attar - Pontiac GTO - The Judge
Tariq Al Gamzy; Triumph TR4A – Red 1967 10. Pre World War II
4. Emaar Award Khaled Baker; Rolls Royce Phantom 1934
Marzooq Al Mansoori; 1959 Chevrolet Impala 11. Modern/Classic Car
5. Heritage Hisham Al Rifai; Pontiac 1978 Trans An Gold Colour
Arnd Springer; Volkswagen Samba 1966 12. American
6. Classic Truck Car May Maqzoomi; Corvette Stingray 1962
Nasser Mohammad Al Mansouri; 1946 Chevrolet Pick Up 3100 13. European Car
7. Club Merit Ahmad Abdulrahman; Rolls Royce Chinese Eyes, Silver
Rafiq Mahmood ; White Trans Am Coupe 1963
8. Parade Car 14. DDCCS 2010 – Best of Show
Luke Walker; London Taxi Serge Lupa; Ferrari Dino 1970 246 GT
DUBAI REAL TIMES
E
ffort is needed for the UAE tion, overlooking the Palm Jumeirah,
to do their part in applying has attained pre-certification from
environmentally-conscious the US Green Building Council (US-
initiatives in design and GBC) at the Gold level for Leadership
construction, said a Professor at The in Energy and Environmental Design
British University in Dubai (BUiD), a (LEED). This brings Dubai Pearl a step
research-based postgraduate uni- closer to setting a new precedent
versity, following a recent conver- for sustainable urban communities
sion at their new campus. Located in Dubai.
in phase three at Dubai International Leed is the internationally rec-
Academic City (LEED Silver certified) ognised benchmark for the design,
BUiD’s new building was provided as construction and operation of high
core and shell, allowing the school performance green buildings across
to fit the interior with its sustainable the real estate industry. Its five key
design plans for lighting, cooling, principles of sustainable site de-
partitioning and flooring. Professor Bassam AbuHijleh velopment, water savings, energy
The design for BUiD’s new cam- efficiency, materials selection and
pus was overseen by Professor Bas- improving the lighting quality, and providing a sustainable and green indoor air quality, provide a suite of
sam AbuHijleh, the Atkins spon- reducing cooling-load and electric- home or office environment that standards for environmentally sus-
sored Head of Sustainable Design of ity, in comparison with the standard brings added benefits, such as low- tainable construction practices.
the Built Environment who believes practice artificial lighting generally ered electricity and cooling charges,” Complying with the guidelines
conscious changes to the design of used throughout the UAE. added AbuHijleh. of the rating system, Dubai Pearl
an office or home can have a very To further reduce the cooling In addition to the environmen- will utilise environment-friendly
positive impact for the environment. load, individual thermostats have tally-friendly implementations, BUiD technologies to conserve energy,
International consultants Atkins have been installed in all rooms within also used lots of glass within the recycle water and re-use assets. A
been supporting BUiD over a num- the BUiD campus, allowing staff to building design to give a greater ‘green’ environment will be created
ber of years and additionally funds set the temperature control to their feeling of space and inclusion, and through the Leed compliant system
the position of the Atkins lecturer, Dr liking and to switch off the air condi- created a dedicated student area which will reduce electricity, gas and
Abeer Shaheen AlJanahi, its special- tioning when not in use. to facilitate academic life for its stu- water used by the community and
ist in architecture and urban design. Thermal and sound insulation dents. help in the optimisation of air con-
“Our new campus only allowed have also been applied to improve The Sustainable Design of the ditioning, light control and car park
us to make the necessary green comfort, reduce energy use and re- Built Environment programme at ventilation.
changes to the interior of the build- duce noise levels between offices BUiD also offers students a dedi- Large-scale solar boosted hot wa-
DUBAI REAL TIMES
ing so we worked with what we had. and classrooms. cated Atkins Digital Design Studio, ter generation plant, high efficiency
But well thought changes go a long BUiD used low VOC environ- equipped with the latest software building façade, optimized ventila-
way, not just from an environmen- mentally friendly flooring material and hardware to use for their proj- tion system for one of the largest
tally-conscious perspective, but also throughout the building, which im- ects. undercover car-parks in the world,
from a social and cost perspective,” proves air quality and reduces vola- extensive grey water collection and
Professor AbuHijleh said. tile organic compounds (VOC), bad
How Dubai Pearl achieved re-use, green roofs and heat recov-
BUiD has maximised the penetra- odours, dirt accumulation, and germ ery systems will be integrated into
tion of natural lighting within the build-up. gold pre-certification the development.
building and used energy efficient “With the right knowledge, Dubai Pearl, the 20 million square Abdul Majeed Ismail Fahim, 53
lighting throughout the building minimal effort can do a lot towards feet integrated sustainable destina- Chairman of Pearl Dubai FZ LLC said:
“Through sensitive and intelligent
design, this sets new standards for
environmental and lifestyle sustain-
ability, without compromising the
high standards of luxury that char-
acterise Dubai as a destination. The
project’s commercial success to date
endorses our commitment to deliv-
ering a combination of sustainability
and stakeholder value as we enter
a new phase in Dubai’s develop-
ment.”
The development maintains a
waste management plan to ensure
that recycling of material is maxi-
mised and targets that encourage,
minimise and avoid waste are iden-
tified. The project will also salvage
non-hazardous construction and
demobilise debris, while all demoli-
tion waste from the site clearing will
be reused by Dubai Municipality for
land development work.
The Dubai Pearl master-plan,
which combines four towers with
classically inspired podium buildings
set in a ‘walkable’ area, will incorpo-
rate recycling facilities for paper,
glass and food-waste. While over 50
per cent of the site area will be pub- Techem HQ
lic open space, almost 45 per cent of
it will be landscaped. Dome Interna- ling this issue and recently published mann says. tended effect: It looks better, has a
tional, a leading UAE-based environ- forecasts of saving potentials. Hans During the last year, energy con- more pleasant interior environment
mental service provider, conducted Altmann, Techem’s Regional Manag- sumption in the UAE rose by seven and the building’s prestige is higher.
an environment impact study for er for the MENA region, states that if per cent and is expected to increase Yet, we should introduce norms that
this development that has been de- a three-tiered approach is followed, even further with the rapidly grow- do not sacrifice on the customer’s
signed with a focus on the future. energy savings of up to 25 per cent ing population, property projects comfort and design interest, and at
are possible. and other business opportunities. the same time, minimises the nega-
Energy usage in the tive environmental impact.”
1. Implementation of price adjust- 2. Introduction of energy-efficient This suggestion is in line with
spotlight ments standards and regulations for development plans and projects of
Rising demand, rising concerns, “At first, the way tenants are charged buildings the UAE, with an increased trend in
three practical solutions in the UAE make them generous with The second energy-saving measure Abu Dhabi, with the aim to improve
As population growth accelerates, their energy consumption. We have is the introduction of efficiency stan- ecological performance of buildings
particularly in developing countries seen great moves from the UAE gov- dards and regulations that would as the main concerns of sustainable
across the GCC, the region is con- ernment toward boosting ‘slab’ en- enforce developers to boost the and low energy building practices.
suming energy at an unprecedented ergy tariffs, which puts households’ implementation and production of
rate. According to the United Na- energy consumption on certain more efficient systems, appliances 3. Implementation of rules and
tions, by late 2008 the GCC’s popu- levels. This determines their energy and equipment. regulations to reduce energy con-
lation growth had reached 4.77 per consumption based on the specified As Hans Altmann explains, “New sumption
cent. Likewise, on the business side, level. However, there is room to op- environmental standards such as the The third aspect, Hans Altmann
DUBAI REAL TIMES
the region is struggling to build timise this system, whereby pricing Green Building Code and Estidama points out, is the implementation of
power generation capacity fast for energy can be based on actual have always been on the top of the rules and regulations to reduce en-
enough to meet growth in demand. consumption, which in the long- UAE’s agenda. There are bans for cov- ergy consumption. There should be
Energy requirements are expected term makes households more aware ering a facade for glass or aluminium incentives for tenants to save energy
to reach shocking levels rising 50 per and create an incentive for the care- skin buildings due to their thermally and increase their level of awareness.
cent of GCC’s electricity usage over ful use of energy. This is especially inefficient nature. The use of glazed “This is a common practice around
the next years. important for air conditioning, the facades in modern buildings has the world and from our experience
Leading global energy services greatest energy devourer account- gained increased popularity, just the consumption-based energy cost
54 provider Techem has addressed ing for over 50 per cent of the UAE’s drive along Skeikh Zayed Road, and allocation method enables tenants
ways and practical solutions of tack- total energy consumption,” Hans Alt- you will see that it does have the in- to pay for the energy they consume
and get rewarded for that,” he ex- and provide more landscaping. Its dustry leaders, review new products ducers and breeders, seed traders,
plained. aim is to add to the current six major and adopt new technologies to help landscape gardeners, retail centres
Techem has successfully experi- parks and 76 residential ones spread us in our upcoming ‘beautification’ and wholesalers, real estate devel-
enced in many European countries throughout different areas of the projects,” he added. opers, local government and the
that the customer’s learning curve Emirate and provide every person Mona Dada, Project Manager, hospitality industry. Visitors arrived
realised energy savings of up to 40 living in Dubai an equivalent of 25 planetfair LLC, said: “Now in its from the GCC, Levant, Kenya, South
per cent. This practice is of utmost square metres of green space each fifth year, IPM DUBAI has become a Africa and Asia.
importance for this region, where by 2020 where currently this space is benchmark event for the horticul- The show included participa-
air conditioning is the major energy 13.18 square metres. tural industry and is staged in Dubai tion from leading companies in
devourer, so that tenants are more Mohammed Hassan Al Fardan, because of its world-leading infra- the UAE such as Alissar T&C, Al
likely to change their heavy energy Head of Promotion and Recreation structure as a transport hub. IPM has Lokrit, Arabian Agriculture, Mirak
use pattern as regulations for a fair Office Public Parks and Horticulture grown in importance every year and Agriculture, Gover Horticulture and
pay-for-use model reward the cau- Department, Dubai Municipality, is an opportunity for professionals to others. Seminars and live demon-
tious consumer by paying less. said: “Our surroundings are highly demonstrate technology, meet, dis- strations were held every day and
All in all, it is clear that there is important for all of us and make cuss new plans and strike deals.” the Association of German Florists
room for improvement for tenants Dubai an attractive and pleasant Visitor footfall at this year’s IPM (FDF) presented internationally
in terms of a more energy-conscious city in which to live - for this reason exceeded 3,000 over the three acclaimed floristry design. The lat-
behaviour. Applying already estab- we are pushing ahead with our ex- days, as it is clear that the demand est technology and techniques in
lished standards and systems such tensive plans. Until now we have for flowers and plants and their re- landscaping, irrigation, plant pro-
as Techem’s solutions based on its only used locally produced plants lated products and services remains tection and seed plantation were
long-term success and experience and flowers, cultivated in our own strong despite the global financial on display, along with floristry
implies that the wheel does not greenhouses, to develop Dubai’s conditions,” she added. accessories and sales promotion
need to be reinvented. green spaces. However, we have Running from March 8-10 at Air- items.
Applying a hybrid set of steps ambitious ideas and there is now a port Expo Dubai, IPM DUBAI, fea- With a common goal to pro-
would have a significant impact on need for a greater variety of plant tured more than 160 international mote Dubai as the hub for horticul-
a practical basis, not just theoretical; and flower species.” exhibitors from 20 countries from tural trade, the exhibition was sup-
a mix of adjusting prices for energy, “This is why the Dubai Municipal- the fields of flowers, plants, technol- ported by Dubai Airports, Dubai
along with energy-efficient stan- ity supported IPM DUBAI 2010. This ogy, floristry, sales promotion, plant Flower Centre, Dubai Municipality-
dards and regulations for buildings horticultural industry event was a maintenance and plants logistics. Public Parks & Horticulture and the
culminated in the introduction of perfect platform for us to meet in- Trade visitors included plant pro- Ministry of Environment & Water.
rules and regulations for tenants.
As a result, the energy shortage
that the GCC is currently facing –
clearly exemplified by the blackouts
in Sharjah during the summer with
an expected scope at a larger level
for this year - would be addressed.
Techem elaborated on these practi-
cal solutions in detail at their hosted
seminar on ‘Reducing energy costs
of your property up to 25 per cent’
in February.
Planting of 27 million
plants last year
Each person living in Dubai to have
25 square metres of green space
each by 2020
Twenty seven million flowering
plants were planted throughout
DUBAI REAL TIMES
T
his article will touch on market conditions, stakeholders of • Pre-qualification phase addendums amending any part of
some of the fundamental the construction industry were too At this phase the employer will set the tender documents. Tender site
legal aspects of the engrossed in negotiating and closing its selection criteria (for example, visits are usually carried out during
tendering process relating deals as quickly as they could after contractors who are experienced in this phase.
to construction and engineering the tender closing dates. From our a specific type of engineering works)
projects and offer some guidance experience there have been instances and invites prospective tenderers • The tender offer or bid
on how best to avoid problems where parties have compromised on who satisfy the said criteria to submit submission phase
during this crucial stage of contract the legal issues during the tender their details and capabilities. The Tenderers submit their offers or bids
formation. process for fear of missing the set objective of this phase is to enable before the stipulated deadline along
Tendering for large and complex milestones of a particular project. the employer to select suitable with the required tender security.
construction or engineering projects contractors to proceed to the next
can be a very expensive exercise The tender process phase. • The tender opening and post
for employers and tenderers alike. The tendering process in the tender clarification phase
However, it would be money well construction and engineering • The tender invitation phase The employer opens and evaluates
spent if the objectives of tendering industry has developed into a The employer issues an invitation the offers or bids and seeks
were achieved. very comprehensive and complex to the shortlisted contractors (those clarifications from the tenderers
Most industry players will agree procurement process. It often who were selected from the pre- regarding their offers or bids (if
that the main objectives of tendering involves many steps and procedures qualification phase) or to the public necessary).
is two fold: firstly, the tendering which tenderers must undertake at large (if no pre-qualification phase
process enables the employer to and numerous conditions that must was carried out) to participate in the • The award phase
secure a suitable contractor to be satisfied before they are eligible tender process. The employer issues a letter of
carry out the intended works at a to move to the next stage of the acceptance to the successful
competitive price; secondly, the process. • The tender clarifications and tenderer.
process provides a level platform The following provides the addenda phase
DUBAI REAL TIMES
or formulating their bids. These employer’s letter of acceptance. employer’s terms of acceptance are, process or in their respond to
assumptions and interpretations And it is usually provided that until in substance, different from its own tender invitations.
should then be discussed with the a formal agreement is executed offer or bid, otherwise the employer Even though it seems that the
employer during tender clarification between the parties the letter of may encash the tender security construction market in the UAE
meetings. If the employer finds acceptance shall form a binding or bond on the basis that the is currently in a depressed stage,
it necessary, the appropriate contract between them. tenderer has failed to comply with it is certainly an opportune time
addendum or clarification may be However, for the employer’s its obligation under the tendering for employers to capitalise on the
issued to all tenderers in order to acceptance to be binding on the contract. lower construction costs and for
58 remove or minimise any ambiguity successful tenderer, the terms of The tenderers also need to infrastructure projects to catch-
in the tender documents. the acceptance must in substance be aware that there would be no up with the building industry.
LEGALLY SPEAKING
T
he economic meltdown is a ways that developers can raise equity of the investor or at the occurrence the introduction of such investors.
global phenomenon which capital, each having its disadvantages of a predetermined event, such loan Additionally the master developer
has had a knock-on effect and advantages. is convertible into shares. of the project in question must
on the Dubai property Developers may issue ordinary The rights and obligations of the be notified as most plot purchase
market. This article will consider how shares to investors in return for investor and the developer, as well as agreements require approval for
external equity investment can be a invested equity funds. Dividends the rights and restrictions attaching change of control or sale of shares in
viable source of finance for property are distributed only if the company to shares issued, as discussed above, a development company.
developers as an alternative to bank is profitable and when the directors are generally agreed and specified Given the low valuations of
debt financing and in the absence of so choose. A potential pitfall in the memorandum and articles property development companies
unit purchaser payments. of this approach is caused by a of the development company that have resulted from the global
The global recession has resulted shareholders’ right to participate in and in a shareholders agreement. recession, equity financing can
in reluctance by unit purchasers to voting. An investor who purchases A shareholders agreement is a provide a viable solution to the
make timely payments to developers. more than 50 per cent of the shares contract governing the relationship dilemma of the lack of financing for
It has also resulted in reluctance of the development company will between the shareholders including property development companies
by banks to make available debt generally be able to control dividend the financial relationship, process of in these difficult times.
financing to developers. As an declaration, allotment of shares, decision making and mechanism for The above information is
alternative, equity financing and appointment and removal of transferring and selling shares. Such not legal advice and is neither
provides investment funds to a directors, (and thus control of the an agreement is a private agreement intended to create nor creates a
developer in exchange for a share of board). In such scenario, if developers between the shareholders and is lawyer-client relationship. Neither
the development company. Equity issue ordinary shares they should generally expressly agreed to take the writers nor Afridi & Angell are
financing is attractive for developers strive to retain more than 50 per precedence over the memorandum responsible for anyone relying on
because no interest expense is cent of the shares in order to retain and articles of association of the the above information. You are
incurred on funds invested and control. company. recommended to take independent
investor influence over the business To avoid some of the drawbacks It is important to bear in mind that legal advice.
can be curtailed. Generally, an associated with issuing ordinary approval from relevant governmental Shahram Safai is a lawyer,
investor obtains returns on an equity shares, developers may consider organisations such as Dubai’s Real a professional engineer and a
investment through dividends issuing non-voting shares with the Estate Regulatory Agency and the partner at the law firm of Afridi &
which are payments made out of contractual right to a dividend of Land Department are required for Angell in Dubai.
the company’s profits. However, a fixed percentage in priority over
in this way, a developer also gains other shareholders. Since the shares
access to much needed capital from carry non-voting rights, investors
the investor with no immediate cannot influence the running of
commitment to provide returns until the company. However, developers
the company is profitable. But an could issue such preference shares
DUBAI REAL TIMES
investor also gains in such scenario with the right to appoint board
as the investor has made an equity members thus granting a certain
investment in the development level of minority board control to
company at a rock bottom valuation such investors.
given the economic cycle: he stands Another option that a developer
to benefit from significant capital may consider is convertible debt,
gains as the economy improves and which is a compromise between
the valuation of the development debt and equity financing. An
company increases. investor’s loan to a developer may be 59
Technically, there are a variety of structured such that at the discretion
LEGALLY SPEAKING
Decree no. (1) of 2009 c- If the rent value in year 2008 was 46 per cent to 55 per cent
We, Mohammed bin Rashid Al Maktoum, Ruler d- If the rent value in year 2008 was less than 56 per cent of the
average similar rent; the maximum rent increase shall be equal
of Dubai;
to 20 per cent of such value.
After perusal of Law No. 16 of 2007 establishing the Real Estate
Regulatory Agency,
And Law No. 26 of 2007 regulating Relationship Between Article (3)
Landlords and Tenants in the For the purpose of this Decree the similar rent value of the
Emirate of Dubai as amended, property unit means pursuant to “The Rent Index of the
And Decree No. 2 of 1993 establishing Special Judicial Emirate of Dubai” applicable on the date of renewing the
Committee for settlement of disputes between landlords and tenancy contract.
tenants, as amended,
And Decree No. 27 of 2007 regarding rentals in the Emirate of
Dubai. Article (4)
1- The similar rent value shall be set pursuant to the Rent Index
Issue the following Decree: of the Emirate of Dubai which is attached to this Decree.
2- The Real Estate Regulatory Agency shall review and update
Article (1) the Rent Index of the Emirate of Dubai periodically.
There should not be any rent increase in 2009 for tenants who
were leasing property units in 2008, which includes residential Article (5)
and non-residential properties, if the rent in 2008 was equal to The Real Estate Regulatory Agency shall coordinate with the
or 25 per cent or less below the average similar rent. Special Judicial Committee for settlement of disputes between
landlords and tenants to set the relevant procedures to
implement the provisions of this Decree.
Article (2) Article (6)
As an exception to the provisions of Article (1) of this Decree, Any other provision in any other local legislation shall be void
the maximum rent increase percentage of property units in to the extent it contradicts with the provisions of this Decree..
the year 2009 for tenants who were leasing such units in 2008
shall be as follows:
Article (7)
a- If the rent value in year 2008 was 26 per cent to 35 per cent This Decree shall be published in the Gazette and enforced on
less than the average similar rent; the date thereof.
DUBAI REAL TIMES
60
Law No. 33 of 2008 residential, commercial or professional purposes or any other
legal activity.
Landlords & Tenants in the consent, the right of disposal of the property and to whom the
title of the property is transferred during tenancy period or to
61
Article (9) Article (25)
1. Landlord and tenant must specify rent value in the tenancy 1. Landlord may demand eviction of tenant prior to expiry of
contract. If both tenancy period in the following cases:
parties have not specified the same or if it becomes impossible a. If tenant fails to pay rent value, or part thereof, within
to prove their thirty (30) days of landlord’s notification for payment;
agreement then rent shall be as per the similar rent. unless parties agreed otherwise.
2. The Committee shall specify the similar rent in accordance
with the standards of b. If tenant subleases the property, or part thereof, without
specifying the rent increase percentage applied by the Agency landlord’s written approval and in such case eviction shall
and in accordance be applicable to the tenant and the subtenant, and the
with the general economic circumstances in the Emirate, and subtenant’s right to refer to tenant for compensation
pursuant to the shall be reserved.
property status, the similar market rent in the same area and in
accordance with c. If tenant uses, or allows others to use, the property for
any valid legislation in the Emirate regarding properties’ rent illegal or immoral activities.
and any other d. If the leased property is a commercial shop and the
factors the Committee may decide. tenant left the same without occupation and without legal
reason for 30 continual days or 90 non-continual days in
one year; unless the parties agreed otherwise.
Article (13)
For the purpose of renewing tenancy contract, landlord and e. If tenant causes changes that endanger safety of
tenant upon expiry of the the property in a way that it cannot be restored to its
tenancy contract may amend any of the contract’s terms or original condition or if he causes damage to the property
review the rent whether by intentionally or due to his gross negligence to take proper
increase or decrease. If the parties do not reach an agreement precautions or if he allows others to cause such damage.
regarding this, the
Committee may decide fair rent considering the standards f. If tenant uses the property for purposes other than
referred to in Article No. (9) of the purpose it was leased for or if he uses the property
this Law. in a way that violates planning, building and land using
regulations.
Article (14)
If either party of tenancy contract wishes to amend any of its g. If the property is in danger of collapse, provided that
conditions pursuant to landlord must prove such condition by a technical report
Article (13) of this Law, then he must notify the same to the issued by Dubai Municipality or accredited by it.
other party not less than 90 days prior to expiry date, unless
both parties agreed otherwise. h. If tenant fails to observe legal obligations or tenancy
contract conditions within (30) days from date of
notification by landlord to abide by such obligations or
Article (15) conditions.
DUBAI REAL TIMES
62
2. Landlord may demand eviction of tenant upon expiry
of tenancy contract limited to the following cases:
Article (36)
a. If the owner wishes to demolish the property for The Chairman of the Executive Council shall issue the
reconstruction or to add new constructions that prevent necessary regulations, bylaws and
tenant from benefiting from the leased property, decisions to implement the provisions of this Law.
provided that necessary licences are obtained.
Article (42)
b. If the property requires renovation or comprehensive This Law is to be published in the Gazette and enforced on
maintenance which cannot be executed while tenant is the date thereof.
occupying the property, provided that a technical report
issued by Dubai Municipality or accredited by it is to be
submitted to this effect. Issued by us in Dubai on 1 December 2008
Article (26)
If the Committee decided for the landlord to recover the
property for his own use, or use by his first degree next of
kin pursuant to the provision of paragraph (c) of clause (2) of
Article (25) of this Law, then landlord shall not rent the
property to others for at least two years for residential
properties and three years for non-residential properties
from date of recovery of the property, unless the Committee
decides less period for reasons considered by it, otherwise
the tenant shall have the right to request the Committee to
order proper compensation to him.
DUBAI REAL TIMES
Article (29)
1. Tenant shall have priority to return to the property if it is
demolished and reconstructed or if it is renovated, provided
that rent value shall be fixed in accordance with Article (9)
herein.
2. Tenant shall benefit from the above mentioned priority
right within thirty (30) days from being notified by landlord.
63