Union Properties, Dubai Financial Market-listed developer, is planning to launch a new $109 million (AED400 million) mixed-use project in Motor City, Dubailand.
“The project will have residential and retail components unlike the Oia Residence in Motor City, which is only residential. Currently, it is in the concept design stage,” said Isam Ababneh, chief construction officer at Union Properties.
The project is likely to have between 250 and 300 units, with retail spread across the ground and mezzanine floor. The construction cost is estimated between $54.49 million (AED200 million) and $68.12 million (AED250 million).
“We are looking at having smaller unit sizes to make it more affordable in terms of prices for smaller families,” he said.
Although the developer owns plots of land in other Dubai master communities, it is focusing on developing its own land, particularly in Motor City.
“The big part of investment comes from land and we have land available to us… so we might invest in it. Motor City is well-known secondary location and why we should we go elsewhere,” Ababneh said.
The developer has already signed a $79 million (AED290 million) project finance facility with Ajman Bank and National Bank of Ras Al Khaimah for construction of its $123 million (AED450 million) Oia Residence.
China State Engineering Corporation Middle East has commenced work on the 269-unit project which is set for completion by end-2017.
The developer’s net profit more than doubled to $31 million (AED113.8 million) in the first six months of 2016 from $13 million (AED47.5 million) reported in the same period last year. Total income rose to $161 million (AED593.3 million) from $156 million (AED576.3 million).
On Wednesday, company shares closed at AED0.693, down one percent.
In October this year, property consultancy CBRE said the Dubai residential market is showing early signs of improvement with the sales market expected to recover ahead of the rental segment in 2017.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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