Emaar plans to fund joint project with Dubai Aviation City Corporation through equity, debt and off-plan sales
Emaar Properties plans a joint-venture development that will see more than 15,000 residences built in the Dubai South district, it was announced today.
The Emaar South project, built in cooperation with Dubai Aviation City Corporation, will feature a mix of townhouses, villas and apartments, the developer said.
Mohammed Alabbar, chairman of Emaar Properties, says the developer plans to fund Emaar South through equity, debt and off-plan sales.
Alabbar told reporters that the project would take four years to build and that it would serve people working at Al Maktoum International Airport, Aviation District and Logistics District, as well as acting as a “magnet” for the estimated 25 million visitors attending Expo 2020 in Dubai.
Although he declined to give a cost estimate for the project, when asked whether Emaar might issue bonds to finance the 7 sq km project, Alabbar did state that the developer “wanted to be conservative on debt, but that it would take advantage of current low interest rates”.
“The interest rate is so sweet,” he was quoted as saying by Reuters.
Located near Al Maktoum International Airport, Emaar South will include an 18-hole golf course and three- and four-star hotels, along with retail outlets and schools.
The first phase of the project – 50% owned by Emaar and 50% by Dubai Aviation City Corporation – is expected to be completed by 2020.
With the wider 145 sq km Dubai South airport city quickly taking shape, Emaar said that it expects demand for residences to spike.
“Emaar South is a thoughtfully planned project set in Dubai South, a purpose-built integrated urban city destination that creates a vibrant new economic platform centred on aviation and logistics services,” Alabbar said in a statement.
“The opportunities created by Dubai South will be complemented by Emaar’s new golf-course district. Through Emaar South, we are creating another world-class integrated community that is smart and sustainable, and will generate long-term economic value. We are assigning the best-in-class designers, architects and consultants for this new residential city,” he added.
Emaar South is envisaged as a smart neighbourhood, with the project expected to create several hundred new jobs in the hospitality, retail and leisure sectors. It will feature six districts anchored by the golf course and clubhouse, along with a number of community parks and dedicated retail precincts.
“We are happy to partner with Emaar, the region’s leading real estate developer. This association reflects the depth of our commitment to establish Dubai South as the premier destination to live, work and invest,” said Khalifa Al Zaffin, executive chairman of Dubai Aviation City Corporation and Dubai South.