Sunday, November 29, 2009

Al Fajer delivers first tower at Jumeirah Business Centre

The first tower, Jumeirah Business Centre 2 of Jumeirah Business Centre development by Al Fajer Properties at the Jumeirah Lakes Towers has been delivered, following restructuring of the company.

The process of re-structuring focused on the liabilities of Dh.4bn by the company and Dh.200-Dh.400billion debt, liquidating its land bank worth Dh.800mn, appointing a new management team and reducing its workforce by 30 percent. The total value of mitigated risk was brought down to Dh.3billion.

According to Shaikh Maktoum Bin Hasher Al Maktoum, CEO of Al Fajer, the construction plan by the company was accelerated to a four-day cycle per floor for phase one, comprising towers one to five of its nine commercial towers.

The development comprises nine towers on the whole, and will cater to both large local and multinational companies. The freehold offices cover a leasable area of 3.6mn square feet.

The handover of units in phase one has been going on, while the phase two comprising four towers will be completed in 2011. So far about 70 percent of the inventory has been sold.

Shaikh Maktoum revealed that the prices for units in the towers have grown from Dh.800 per square foot two months ago to Dh.1200 per square foot on inauguration.

He said that the company is expecting a maximum 50 percent default rate and minimum 20 to 30 percent rate. To counteract the problem, Al Fajer is offering discount packages to investors.

According to Sheikh Maktoum, Dubai still holds a competitive edge when it comes to commercial space.

Moreover, labour accommodation and overheads are cheap, which is advantageous to Dubai, he adds.

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