November 2009
At Cityscape this year, Deyaar showcased Central Park, a $2 billion joint venture with Dubai Properties Group, which is 64 percent complete. Located within the Dubai International Financial Center (DIFC), it includes a commercial tower and a residential tower, as well as retail space.
Markus Giebel, the company's CEO, explains that all other Deyaar projects are 100 percent sold and Central Park is the only new project remaining. Since the sales market has not picked up yet, Giebel says that the company will switch to the rental market, which is fairing better in the current situation. "For rental, there is interest, but to sell a new property is very difficult," he says.
As a part of its promise to deliver seven projects this year, Deyaar has already delivered four and has three to go. Giebel explains that it is easy to deliver on time these days, mainly because construction companies are not packed with work and thus have the resources to finish on time. Moreover, since Deyaar is paying all its bills, there is no reason why delivery should be delayed. "If your operating cash flow is positive, and you have cash, and if you pay all your bills, you are in a very solid position," he says.
As for future projects and as a part of its 2015 plan, Deyaar is considering two major changes in strategy. First, it will target low income housing, which represents the biggest chunk of the current demand. Deyaar is even considering such a project in Lebanon, with its partner Solidere, but nothing final or specific has been agreed upon yet. The company also launched a new research division to find the best way to construct low-income housing. The second change is to develop high-end retirement homes. "For the aging population, there are solutions needed and there is very little competition," says Giebel. Deyaar would, for example, build retirement homes in both Dubai and Germany, and occupants could travel back and forth according to the weather and their convenience.
Central Park
Location: DIFC, Dubai
Value: $2 billion
Specifications: A 45-level commercial tower, (426 units, 267,000 square meters), a 47-level residential tower (170,000 square meters) and retail space
Status: 64 percent completed (for rent only)
By Nada Nohra © Executive 2009
At Cityscape this year, Deyaar showcased Central Park, a $2 billion joint venture with Dubai Properties Group, which is 64 percent complete. Located within the Dubai International Financial Center (DIFC), it includes a commercial tower and a residential tower, as well as retail space.
Markus Giebel, the company's CEO, explains that all other Deyaar projects are 100 percent sold and Central Park is the only new project remaining. Since the sales market has not picked up yet, Giebel says that the company will switch to the rental market, which is fairing better in the current situation. "For rental, there is interest, but to sell a new property is very difficult," he says.
As a part of its promise to deliver seven projects this year, Deyaar has already delivered four and has three to go. Giebel explains that it is easy to deliver on time these days, mainly because construction companies are not packed with work and thus have the resources to finish on time. Moreover, since Deyaar is paying all its bills, there is no reason why delivery should be delayed. "If your operating cash flow is positive, and you have cash, and if you pay all your bills, you are in a very solid position," he says.
As for future projects and as a part of its 2015 plan, Deyaar is considering two major changes in strategy. First, it will target low income housing, which represents the biggest chunk of the current demand. Deyaar is even considering such a project in Lebanon, with its partner Solidere, but nothing final or specific has been agreed upon yet. The company also launched a new research division to find the best way to construct low-income housing. The second change is to develop high-end retirement homes. "For the aging population, there are solutions needed and there is very little competition," says Giebel. Deyaar would, for example, build retirement homes in both Dubai and Germany, and occupants could travel back and forth according to the weather and their convenience.
Central Park
Location: DIFC, Dubai
Value: $2 billion
Specifications: A 45-level commercial tower, (426 units, 267,000 square meters), a 47-level residential tower (170,000 square meters) and retail space
Status: 64 percent completed (for rent only)
By Nada Nohra © Executive 2009
