Dubai retreats from $95 billion project
Güncelleme Tarihi:
AP
Oluşturulma Tarihi: Aralık 05, 2008 00:00
DUBAI - The newly created Dubai developer that unveiled a $95 billion real estate project just two months ago said yesterday it is reviewing its plans due to the economic downturn.
The retreat comes as a widely watched report showed property prices in the fast-growing Gulf city-state slowed considerably in the three months through September, ahead of an expected decline later this year. In reassessing its development plans, Meraas Development said in an e-mailed statement it has "seen that investor demands have changed" and that it must "quickly respond to meet these market needs."
The developer, launched by the government of Dubai in late September, said it is re-examining its business strategy and the rollout of its flagship Jumeira Gardens project slated for a central part of city. "In a worldwide economic downturn, any corporate must analyze the market and ensure its business strategy is aligned to make the most of new opportunities, as well as ensure risk management strategies take account of the new financial landscape with a focus on new market and investor demands."
Meraas announced the 350 billion dirham ($95.3 billion) Jumeira Gardens at a property expo in October. The company said at the time that work had already begun on the development, which was advertised as a "city within a city" that would include one of the world's tallest buildings and take 12 years to complete. Meraas expects to have more details on the project by the beginning of 2009. The developer is a division of Meraas Holding, whose private equity division, Meraas Capital, joined real estate investment trust Boston Properties Inc. and other investors in acquiring the General Motors Building in New York City for about $2.8 billion in June. Separately yesterday, real estate consultancy Colliers International said its index of Dubai home prices grew 5 percent year-over-year from July to September - down from 43 percent in the first quarter and 16 percent in the second quarter.
The developer, launched by the government of Dubai in late September, said it is re-examining its business strategy and the rollout of its flagship Jumeira Gardens project slated for a central part of city. "In a worldwide economic downturn, any corporate must analyze the market and ensure its business strategy is aligned to make the most of new opportunities, as well as ensure risk management strategies take account of the new financial landscape with a focus on new market and investor demands."
Meraas announced the 350 billion dirham ($95.3 billion) Jumeira Gardens at a property expo in October. The company said at the time that work had already begun on the development, which was advertised as a "city within a city" that would include one of the world's tallest buildings and take 12 years to complete. Meraas expects to have more details on the project by the beginning of 2009. The developer is a division of Meraas Holding, whose private equity division, Meraas Capital, joined real estate investment trust Boston Properties Inc. and other investors in acquiring the General Motors Building in New York City for about $2.8 billion in June. Separately yesterday, real estate consultancy Colliers International said its index of Dubai home prices grew 5 percent year-over-year from July to September - down from 43 percent in the first quarter and 16 percent in the second quarter.