Sunland expands in Dubai
The purchase increases the Gold Coast-based developer's exposure to the emirate with a development portfolio of $3.3billion out of its total $5.73 billion work book.
Sunland, which developed the world's tallest apartment tower, Q1, on the Gold Coast, plans a $1billion twin tower residential project, serviced apartments and 5000sqm of retail.
Sunland managing director Sahba Abedian said the group was confident of growth in Dubai and the United Arab Emirates.
"I don't believe we are heading for an oversupply or a bubble environment," Mr Abedian said of the rash of construction in progress in Dubai.
He said migration to the emirate was about 25,000 people a month, which was underpinning demand for housing.
Sunland's latest acquisition is a 1.6ha site at Dubai Waterfront and is next door toa site it bought in February for $107million to be developed with joint venture partner British/Arab consortium Becfar.
No discussions had been held with Becfar on the new site, Mr Abedian said. However, he did not rule out finding a partner for the project or syndicating it.
The group's other Dubai projects are all with joint-venture partners.
Sunland had planned to raise $200 million to fund its first $860million Dubai Waterfront development, but in May Becfar paid $33 million just to come on board and will share 50-50 in the costs and profits or losses of the development.
Mr Abedian said Sunland had looked at syndication or a fund for the Dubai projects, but decided that the market's appetite would determine if such a move would go ahead.
In the next few months, Sunland expected to raise capital for its second domestic land project, which would hold land subdivisions on the eastern seaboard, he said.
Sunland bought both Dubai Waterfront sites from the Dubai ruling family's Nakheel, run by former Investa CEO Chris O'Donnell.
The site purchase will be paid for over three years.
The developer plans to start work on the project, a 10-minute walk from the Dubai Downtown site and nearby the new Jebel Ali International Airport, in the second half of 2008. It is scheduled to be completed in 2013.
Paul Shepherd, investment director of top 10 Sunland shareholder Seymour Wealth Management, said he expected the Dubai and UAE's residential market to be quite strong in the next few years, buoyed by the need to house an increasing workforce.
"In the tourism industry alone, an extra 1.3 million employees will needed by 2010," Mr Shepherd said.
"The new international airport will be the largest in the world. The workforce for all these projects has to be housed, watered and fed."
Sunland, which is also developing a Palazzo Versace and D1 apartment tower in Dubai, last week sold a one-third stake in its Business Bay project to Dubai-based Sheth Estate (International) for $40 million. Sunland shares closed yesterday at $4.25, up 9c. Source
Sunland, which developed the world's tallest apartment tower, Q1, on the Gold Coast, plans a $1billion twin tower residential project, serviced apartments and 5000sqm of retail.
Sunland managing director Sahba Abedian said the group was confident of growth in Dubai and the United Arab Emirates.
"I don't believe we are heading for an oversupply or a bubble environment," Mr Abedian said of the rash of construction in progress in Dubai.
He said migration to the emirate was about 25,000 people a month, which was underpinning demand for housing.
Sunland's latest acquisition is a 1.6ha site at Dubai Waterfront and is next door toa site it bought in February for $107million to be developed with joint venture partner British/Arab consortium Becfar.
No discussions had been held with Becfar on the new site, Mr Abedian said. However, he did not rule out finding a partner for the project or syndicating it.
The group's other Dubai projects are all with joint-venture partners.
Sunland had planned to raise $200 million to fund its first $860million Dubai Waterfront development, but in May Becfar paid $33 million just to come on board and will share 50-50 in the costs and profits or losses of the development.
Mr Abedian said Sunland had looked at syndication or a fund for the Dubai projects, but decided that the market's appetite would determine if such a move would go ahead.
In the next few months, Sunland expected to raise capital for its second domestic land project, which would hold land subdivisions on the eastern seaboard, he said.
Sunland bought both Dubai Waterfront sites from the Dubai ruling family's Nakheel, run by former Investa CEO Chris O'Donnell.
The site purchase will be paid for over three years.
The developer plans to start work on the project, a 10-minute walk from the Dubai Downtown site and nearby the new Jebel Ali International Airport, in the second half of 2008. It is scheduled to be completed in 2013.
Paul Shepherd, investment director of top 10 Sunland shareholder Seymour Wealth Management, said he expected the Dubai and UAE's residential market to be quite strong in the next few years, buoyed by the need to house an increasing workforce.
"In the tourism industry alone, an extra 1.3 million employees will needed by 2010," Mr Shepherd said.
"The new international airport will be the largest in the world. The workforce for all these projects has to be housed, watered and fed."
Sunland, which is also developing a Palazzo Versace and D1 apartment tower in Dubai, last week sold a one-third stake in its Business Bay project to Dubai-based Sheth Estate (International) for $40 million. Sunland shares closed yesterday at $4.25, up 9c. Source
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