Tarek Kandil Interviewed by THE NATIONAL - June 2008 - (English)

Define to invest Dh8bn in Dubai

Designs finalised for three Waterfront developments

Angela Giuffrida

Define Properties, a Dubai-based property developer that launched yesterday, plans to invest Dh8 billion (US$2.1bn) in a mix of commercial and residential projects in the next six months.

The company has bought 13 plots of land in Dubai - one in Dubai Properties' Business Bay, on which it is developing a commercial building endorsed by former Formula One racing champion Niki Lauda, and 12 at Nakheel's Dubai Waterfront.

The design for two residential and one mixed-use development at Dubai Waterfront has been finalised, although the company declined to reveal who its partners were, or disclose any further details on the project.

"We will launch the projects and begin construction in the next five months," said Tarek Kandil, the chief executive of Define.

The remaining nine plots at Dubai Waterfront will be developed by Define itself, or with joint venture partners.

Define's entry to the market comes at a time when building materials are in short supply and cost overruns and project delays are weighing on developments.

However, the company believes it can turn this to its advantage.

"Our aim is not to have the biggest, largest share - we need to be the most credible developer in Dubai," said Mr Kandil.

He said the current market did not present too many challenges to a new business.

"Business is all about taking risks, it all depends on supply and demand. The Dubai property boom has not been affected by the global property crisis. I believe the demand for property in Dubai has not yet been fulfilled," he added.

Walid Abdel Latif, the director of sales and marketing at Define, said developments would not be sold until the schematic design had been finalised and a detailed construction plan was in place.

"Now is the time for serious players in the market, not inexperienced ones," he said.

"We have gathered a strong team of project managers and directors to help us achieve our vision."

Mr Latif added that allowances for price hikes of materials would be covered in its contracts with construction firms. "We will try to help contractors manage their risk, while they will help us by completing our projects on time."

Define is also in talks with mortgage lenders and potential partners for future projects, in the UAE and overseas.

"We are currently evaluating the possibility of engaging financial institutions to provide mortgage funds for our end users.

"And we plan to expand into other countries in the region by engaging both joint ventures and long-term partnerships," said Mr Kandil.

agiuffrida@thenational.ae