By Shane McGinley
Developer eyes new investments; already has $1.6bn worth of projects on Palm Jumeirah and Jumeirah Village Circle
SKAI Holdings, the Dubai-based real estate investment firm behind the AED3.67bn ($1bn) Viceroy Dubai Palm Jumeirah project, is planning to invest another $600 million in the Dubai market over the next six months, the firm’s group CEO told Arabian Business.
“In the last two years, as a result of the growth SKAI Holdings has enjoyed, I have been advised to diversify. I have travelled the globe and compared to Dubai diversifying into another market feels like di-worse-ifying. We have invested $1.6 billion here and are planning to add at least $600 million more in the next six months, which is putting our money where our mouth is,” Kabir Mulchandani, Group CEO, SKAI Holdings, told Arabian Business at the opening of the Cityscape Global exhibition in Dubai.
Established in 2011, SKAI has already started work on its keystone project, the AED3.67 billion ($1 billion) Viceroy Dubai Palm Jumeirah, which has sold all its available inventory and is on target for completion by 2016.
The success of the Palm Jumeirah development spurred interest in SKAI’s second project in Jumeirah Village Circle and helped it secure AED927 million ($252.4 million) worth of sales.
Officially launched in June, the AED1.2 billion project has already sold all available hotel rooms and serviced apartments in the 60-storey tower. The remaining areas such as the food and beverage outlets, meeting rooms, spa and retail will be retained by the developer.
However, Mulchandani is confident in the potential for further growth in the hotel and residences market, hence his plans to invest further over the next six months.
“At SKAI Holdings believe we have found the sweet spot by investing all our capital into hospitality projects. Dubai added 8,000 rooms in the last six months and occupancy is still at 80 percent. Add to this the fact that Emirates is taking delivering of an A380 a month, the $32 billion investment in Dubai World Central, the Mall of the World and world class theme parks together with the vision to hit 20 million tourists by 2020, it is a forgone conclusion,” he said.