The Kuwait Projects Company (KIPCO) has started work on a real estate project worth between $2 billion and $2.5 billion, the investment firm said on Sunday.
The Hessah Al Mubarak project on the outskirts of Kuwait City will span 227,066 square metres, KIPCO said in a statement, as it revealed the brand identity of the scheme.
The project has been downsized to around half the original cost of $5 billion because the first estimate did not take into account the area for infrastructure and services required by the government, Reuters reported. A land plot of around 380,000 sqm was previously earmarked for the development, the news agency said.
IN PICTURES: Kuwait’s KIPCO reveals details of Hessah Al Mubarak project
Banks will provide financing for half of the project, with KIPCO funding the remainder directly, the Reuters report added.
The project development manager is Al Mutawir Real Estate Company, while the infrastructure contract has been awarded to Ahmadiah Contracting and Trading Company, KIPCO said in a statement. “Mobilisation on site has begun,” it added.
The mixed-use Hessah Al Mubarak development will be aimed at both Kuwaitis and expatriates, said Faisal Al Ayyar, KIPCO’s Executive Vice Chairman.
“This project offers a new approach to upper-scale, integrated, urban, mixed-use developments in Kuwait. We have taken a holistic approach to design, creating a richness and sense of connectivity through architecture and landscaping,” Al Ayyar said in a statement.
“The owners have made a commitment to quality and we will be laying down all the infrastructure within the masterplan – including public facilities and open green areas – to make sure that we deliver on this promise, now and in the future.”
IN PICTURES: Kuwait’s KIPCO reveals details of Hessah Al Mubarak project
Close to 50% of the 227,066 sqm land plot is dedicated to public services and amenities, KIPCO said. This includes gardens, open public spaces, urban plazas, streets, multi-story public parking and utilities. Gardens and green areas across the project have been allocated 23,400 sqm.
The project’s total built up area will be 381,000 sqm and includes 82 plots for residential buildings – including high, medium and low-rise apartment buildings and duplexes – along with serviced apartments, offices, clinics, health clubs, commercial units, retail and food and beverage outlets.
Tawfiq Al Jarrah, Executive Director of the development, said: “More than 70% of the built up area of the development project is dedicated to residential units. These are strategically located within the masterplan to allow residents to benefit from public spaces and amenities. The masterplan also includes a business district stretching between two anchor nodes; the food and beverage cluster to the north, and the retail and community services cluster to the south.”
“KIPCO, through its subsidiaries, will be developing 38 plots of the masterplan. The rest of the project will be developed by parties who share our vision and strive for excellence. Our first milestone will be the completion of the infrastructure, which will take 12 months. The first phase of the project, which includes properties developed by our subsidiaries, will be completed 36 months after that. As such, Hessah Al Mubarak will be inhabited by 2020.”
IN PICTURES: Kuwait’s KIPCO reveals details of Hessah Al Mubarak project