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Omniyat chairman upbeat despite senior departures
Omniyat chairman Mehdi Amjad on Wednesday remained upbeat about his company’s future despite the high-profile departure of the chief executive and managing director last week.
Arabian Business revealed last week that Omniyat CEO Peter Walichnowski and managing director Alex Andarakis had stepped down from their positions amid claims the former had clashed with the chairman.
But in an interview with Arabian Business, Iraqi born Amjad, who takes over as CEO on June 1 when Walichnowski leaves the company, said: “The shift in strategy of leadership is essential for any organisation today.
"Any leadership or any business has to have a much more hands on involvement. It is a challenging time for any company. The way you deal these challenges is to be lean, mean and focused.”
In November the developer said it had axed 69 positions due to the global crisis and last week announced it was concentrating on delivering projects rather than launching new ones.
“My strategy is to focus on delivery and execution of the current portfolio. Today Omniyat is financially strong because 85 percent of our portfolio is sold and more than 50 percent is collected,” Amjad said.
Developer Omniyat has nine projects in Dubai, all of which are under-construction. The group will deliver AED1.9bn of units by the end of 2009 out of a total portfolio of AED10bn.
Omniyat said it was also relaxing and adjusting payment plans in line with construction milestones to help investors.
The chairman dismissed claims of a row with Walichnowski and said his resignation had been prompted by the company’s shift in strategy from growth to consolidation triggered by the property slump.
“The target last year was to triple Omniyat’s portfolio in the next three years and hence with that growth strategy I invited two key executives to join the company. Last summer the tsunami hit and left the world in a very different shape. Our strategy had to change,” he explained.
Walichnowski last week also denied his resignation was linked to a boardroom bust-up with Amjad.
The chairman was bullish on the future of Dubai and said the real estate market was close to the bottom, adding that prices had come off between 25 percent and 30 percent depending on location.
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Posted by ROHITH, DUBAI, UAE on 9 May 2009 at 11:04 UAE time
I have invested in The Binary, one of Omniyat's projects and 60% has already been paid. Today the project stands at Podium 1 and the builder is still demanding the balance inspite of not showing any progress in the construction for couple of months. If 60% of the payment is taken from the buyers atleast show that 30 to 40% completion is done. How can you expect to take further payments when there is conflicts within the management and contractors. Show us where have you put the the buyers money. There is absolutely no transperancy in ESCROW account.
Posted by James, Dubai on 16 April 2009 at 20:03 UAE time
What worries is the fact they have collected so much (he said 50%) and not built as much. And the money is not in escrow accounts because most of Onmiyat's projects launched before the law came for the escrow account. Yes maybe he sold 85% of his inventory but people are bailing out because it's negative equity. The price they bought at is now not worth half that price. So if they continue pay they will lose. Many customers are cancelling because better lose 30% of what they paid than to lose 50 or 60 percent.
Posted by DCB, Dubai, UAE on 16 April 2009 at 10:50 UAE time
As someone who has invested with Omniyat, I actually appreciate the transparency is showing as well as their effort to streamline and adapt. In a time when everyone is strapped for money, they’re adding additional amenities to One Business Bay and investing in services that will help me once I’m ready to sell or lease. They are one of the only developers out there rolling with the hard times and continuing to better itself, rather than just ride out the storm.
Posted by Lama Khalil, Dubai, UAE on 16 April 2009 at 10:49 UAE time
When all the newspapers and portals are focusing on this particular company “Omniyat” it somehow makes me think about the status of the other developers. Did the media neglect them? What happened to the BIG names that were dominating the news? Is anyone following on them at all? What happened (and what is happening) with Tameer, Union Properties, ETA Star, Tanmiyat, Limitless, … I am very sure that they also had major changes in strategy that involved redundancies and senior management transformations and for some reason no one is talking about it!
Posted by scc on 16 April 2009 at 10:02 UAE time
Given his remarkable track record in a "real" company Al Masa, Mr Amjad deserves respect. At present, however, this site and others give enormous amounts of column inches to individuals and companies whose views vary from simply unsound to the profoundly suspect.
Mr Amjad said to Arabian Business only 12 months before the troubles began "There is no bubble and I don't believe markets will see a sharp bust. We keep hearing that the supply and demand will be realised in 2008 or 2009, but while I believe that demand will become less extreme, it will continue to outweigh supply."
We all make mistakes but if virtually diagnostic statements such as this are made and shown to be rubbish (please note never with a post event apology or Mea Culpa) why accord respect to their new forecast?
This may be the result of scarce supply of news items, editorial bias, political leverage. Who knows? I take no personal swipe at Mr Amjad, who is entitled to his viewpoint and has a business to talk up but this is widely prevalent.
In very simple terms, nobody got the cataclysm right and nobody knows with accuracy when a market bottom will be reached and to what extent the recovery will takeplace. I suggest you put health warnings on all these statements and treat the readership like consumers of cigarettes!
Posted by Libby Mowen, Dubai, UAE on 16 April 2009 at 00:59 UAE time
Omniyat could see this as an indication that the compnay holds a strong presence, otherwise why would people care that a senior exec has left when many senior execs are leaving or being fired in hundreds of companies in the region every day.
Posted by Anthony Smythe, Dubai, UAE on 16 April 2009 at 00:51 UAE time
I believe that the CEO has been with Omniyat for under 8 months. Nobody expected that the economic crisis would impact the region to that extent. We can’t blame the CEO for leaving, nor can we blame Amjad for making such an economic decision. At least Omniyat has been candid with their comments... Any real estate company would agree.
Posted by Suleiman, UAE on 15 April 2009 at 23:17 UAE time
When the property market was doing well no one complained about it, and everyone took pride in being part of Dubai. Contractors, brokers, agencies, publications, outdoor media, investors, employees, etc. Everyone made money.
Unlike other developers, Omniyat is openly talking about the challenges and their plans to tackle them... I give them credit for that.
Posted by Geriant, Dubai, UAE on 15 April 2009 at 23:13 UAE time
With not one project in Dubai completed the chairman of Omniyat has reason to be mean, as these are very mean times indeed. In spite of his claim that 50 per cent is collected, the gaping hole of the balance must be keeping him up nights. Relaxing payment terms is a desperate attempt to stop skittish investors bailing out and taking their losses on the nose, like sensible folks.
When you have decapitation of a company like this there is a never a straight story. The CEO might be leaving to pursue his own interests, but to lose the MD as well smacks of a night of the long knives.
Omniyat sought a high profile image to peddle its wares, so now the scrutiny is returning to bite the company on its newly lean posterior.
Posted by Kaptain, Abu Dhabi, United Arab Emirates on 15 April 2009 at 17:11 UAE time
Well daily publishing of property related news, interviews suggests that it's a feeble attempt to sustain of whatever remains as confidence of public in the sector.
The sector is riddled with scams, liquidations, resignations, frauds, hiring and firing, poor labour camps, inflated prices
Why then the rosy pictures?