Dubai-headquartered Emaar Hospitality Group has opened its first ever luxury hotel property under its Address Hotels and Resorts brand outside the UAE, according to a statement from the company.

Earlier this month, Emaar Hospitality launched the Address Istanbul in Turkey. This is the third hotel under the Address brand to launch this year. Earlier this year, the hotel group opened the Address Beach Resort in Dubai and Address Beach Resort Fujairah for guests.

The upscale 48-storey Address Istanbul has 182 rooms, two dining outlets, an executive club lounge, and a spa offering a Turkish Hammam experience.

It also features a restaurant on the 48th floor, as well as the Emaar Square Mall, which will have over 400 retail stores, and the Emaar Aquarium and Underwater Zoo.

Emaar Hospitality kicks of expansion with Turkey and Bahrain

Emaar Hospitality is gearing up to launch a second property outside the UAE, the Address Beach Resort in Bahrain. The hotel will be located within Bahrain’s USD 3 billion Marassi Al Bahrain development.

The group is also in the process of launching its Vida brand for the first time outside the UAE. The hotel, Vida Beach Resort Marassi Al Bahrain, is located in the same development as the Address Beach Resort Bahrain.

Earlier this year, it was reported that Emaar Hospitality had plans to open 12 new properties this year as it expands regionally. The group was looking to grow its portfolio “organically,” Kirby told The National.

Alongside new property launches in Bahrain and Turkey, Emaar Hospitality also has plans to expand within Saudi Arabia, Kirby added.

The GCC is a key market for the group, with 44% of its business in Q1 coming from this region. Of this, its UAE business constituted 34%, with staycations gaining popularity in the country.

At the same time, Kirby noted in the report that the group was also focusing on expanding its footprint to new markets not just across the Middle East, but also Central Asia and perhaps even Europe.

“Emaar Hospitality Group has a strong history of successful operations in the Middle East market. With our captivating portfolio, premium lifestyle hospitality at iconic locations and world-class facilities, we are now ready to be a striking edition to the skyline of Istanbul. Istanbul is the urban retreat city for travellers, with its diverse and rich history attracting travellers from around the globe,” Mark Kirby, Head of Hospitality at Emaar Hospitality, said about the Address Istanbul.

 

_{Photo credit: https://tr.emaar.com/en/properties/address-residence-istanbul/}

Ain Dubai, the world's largest and tallest observation wheel, opened to the public this week. Tickets for the day of the launch were completely sold out, according to The National.

Ain Dubai is owned by Dubai Holding under its entertainment portfolio and is located on the Bluewaters Island in Dubai. The 250-meter-high wheel has a total of 48 rotating cabins, each with a capacity of 40 passengers. However, the passenger limit per cabin is currently set at 10 to 12 per cabin due to safety considerations.

Visitors can choose from Observation Cabins, Social Cabins and Private Cabins, and can also access customisable experiences at the tourist attraction.

The observation wheel opened with an inaugural rotation that took 38 minutes. Guests included those that had pre-booked the experiences, as well as winners of the Ain Dubai treasure hunt around Bluewaters competition.

"It was a proud moment for us to host such a celebration to officially welcome the world, allowing so many visitors the chance to experience much of what Ain Dubai has to offer,” Ronald Drake, General Manager of Ain Dubai said in the statement.

Plans for Ain Dubai were approved in 2013

Ain Dubai displaces the Las Vegas High Roller to become the world’s tallest observation wheel in the world. The High Roller has a height of 167.6 metres. Ain Dubai is also nearly twice the height of the London Eye, which stands 135 metres tall.

Plans for the wheel were approved in 2013 as part of the USD 1.6 billion Bluewaters Island development project. The London Eye served as its inspiration, and the wheel was originally estimated to cost AED 1 billion, with a height of 210 metres.

Meraas Holding won the contract to develop the Bluewaters project, including the wheel. Last year, it was announced that Dubai Holding would fully acquire Meraas.

Meanwhile, Hyundai Contracting and Starneth Engineering were appointed as primary contractors for Ain Dubai (they also helped to build the London Eye).

The observation wheel was scheduled to open last year, to coincide with the launch of Expo 2020.

Similar to Expo 2020, Ain Dubai is an addition to a growing number of efforts in the UAE to boost the competitiveness of its tourism sector in the post-COVID era. 

According to a recent report, the country leads in terms of tourism FDI projects in the MEA region, accounting for a third of all tourism FDI investments as well as tourism capital investment.

Wealthy Indian buyers continue to flock to the Dubai real estate market due to long-term visa schemes, Arabian Business reported.

Local property consultants have seen a surge in senior executives from India, including banking and financial professionals, interested in buying a second home in Dubai. But the Dubai real estate market is not the only one in the country to see such an uptick. Abu Dhabi has also been attracting Indian HNIs.

A key driving factor behind this outpour of interest is the launch of new long-term visas in the UAE, that provide residency options to entrepreneurs and professionals, as well as medical, scientific, research and technical specialists.

With property prices still leaning towards the bottom-to-mid end of the barrel in the UAE, these individuals have found a ripe opportunity to buy a second home, especially a luxury property, in the country.

“This steady decline in residential prices (over the years) has now made the Dubai property market amongst the most attractive and affordable in the region. In fact, it is regarded as one of the most affordable markets for luxury housing amongst all world cities today,” Arabian Business cited Shajai Jacob, CEO (GCC) of Anarock Group, as saying.

Jacob added that most of the demand is focused on properties valued between USD 266,500 to USD 800,000.

A continuing trend from 2020 for the Dubai real estate market

It was reported in August last year that Indian HNIs, particularly business communities, were re-focusing on the Dubai real estate market due to favourable market conditions and “deal sweeteners.” Based on Dubailand data from Q2, Indians emerged the top investors in Dubai residential properties.

Further, in July this year, this demographic continued to emerge as top investors in second homes in Dubai. Q2 data shows that Indian HNIs, namely entrepreneurs, professionals, and SME owners, continued to drive residential sales.

The trend reflects a resurgence in interest from Indian investors in the Dubai real estate market, a “perennial favourite” amongst these investors as the Arabian Business report points out.

In 2019, Indian buyers contributed 16%, or AED 8 billion (about USD 2 billion), to residential sales in the Dubai real estate market. Even in 2018, Indian investors made residential buys to the tune of USD 1.6 billion in the first half alone.

Prior to this, it was reported that Indian investors had spent over AED 83 billion (or USD 22.6 billion) on real estate properties between 2013 to 2017.

Asia-based omnichannel home interior and renovation tech platform Livspace is making its GCC entry, starting with Saudi Arabia, according to a recent statement.

Livspace offers a tech-enabled platform that brings together homeowners, design professionals, vendors and brands. The India and Southeast Asia-focused company will now be bringing its platform to the GCC market, looking to connect contractors, designers and home improvement professionals to customers digitally.

The company has secured a joint venture partnership with Saudi’s Alsulaiman Group, with investments of about USD 50 million, the statement said. Alsulaiman Group is a retail and retail-related services group. Its business activities are spread across omnichannel retail, e-commerce and home services, and retail real estate.

Livspace is expecting to launch its services in Saudi Arabia by H1 next year. It is also looking to onboard 500 design partners from across the GCC by 2022.

Livspace will enable Alsulaiman Group to “expand the customer journey”

The joint venture comes at a time when Alsulaiman Group is expanding its products and services through investments and partnerships with companies and startups.

Meanwhile, it has actively been managing IKEA in Saudi Arabia and Bahrain, Flow Progressive Logistics, and Ehteraf real estate development. It has also made a “major investment” in Salasa, an e-commerce fulfilment company.

Saud Alsulaiman, CEO of Alsulaiman Group, noted that the joint venture with Livspace would allow the company to “expand the customer journey” from design to execution. Livspace counts IKEA as one of its investors.

“The companies of Alsulaiman Group – IKEA, Flow, Ehteraf, Salasa and other emerging investments – will continue to grow as an integrated ecosystem to enhance customers' lives through better experiences whether they access to our products and solutions online or through stores,” Alsulaiman also said.

Livspace also offers mobile app solutions, retail applications of artificial intelligence and machine learning, and virtual reality offerings for home development.

The startup was founded in 2014 by Anuj Srivastava and Ramakant Sharma and is headquartered in Singapore. It has been on an expansion spree, making 60 new market entries across the Asia Pacific region.

Since its launch, Livspace has been able to deliver over 100,000 rooms, with more than 7.5 million SKUs sold on the platform.

The company has raised well over USD 200 million in funding, with investors such as TPG Growth, Goldman Sachs, Kharis Capital, Venturi Partners, FFP, EDBI, Bessemer, Jungle Ventures, Helion Ventures and UC-RNT.

The Vida Beach Resort Marassi Al Bahrain will be opening before the end of the year, according to The National.

This will be the first Vida beach resort property to be launched outside the UAE. There are currently a total of five Vida properties in the UAE. Vida Hotels and Resorts is operated by Emaar Hospitality.

The superstructure of the Vida Beach Resort in Bahrain was completed in 2019 by developer Eagle Hills Diyar, a joint venture between UAE’s Eagle Hills and Bahraini developer Diyar Al Muharraq.

Mark Kirby, head of Emaar Hospitality, said that the group anticipates expanding its Bahrain portfolio beyond the Vida property.

“We are delighted to bring Vida Marassi Al-Bahrain to one of the most influential markets in both travel and business. The serene beach resort property will soon be one of the most sought-after holiday destinations in Bahrain while serving as a testament to our warm hospitality,” Kirby also said.

Vida beach resort will be part of the USD 3 billion Marassi Al Bahrain development

The Vida Beach Resort Marassi Al Bahrain will feature 157 rooms, as well as 141 serviced residences. Apart from this, it will also be home to restaurants, a temperature-controlled rooftop infinity pool, and a sea-facing pool bar.

The hotel will be part of the USD 3 billion Marassi Al Bahrain development. It will have direct access to the yet-to-open beachfront mega-mall Marassi Galleria, a private shoreline stretching for a kilometre, and a two kilometre-long promenade as well.

Marassi Al Bahrain is a luxury development that will have premium homes, high-end shopping, leisure, and entertainment options. The development will include 6,600 apartments, 250,000 square meters of retail space, and the Marassi Galleria as well.

Marassi Galleria, set to open in 2022, will have attractions such as a 8,199 square metre Marassi Aquarium and Underwater Zoo, and the first ever Reel Cinemas in Bahrain.

In addition to the Vida Beach Resort, Marassi Al Bahrain will also feature a second hotel, the Address Beach Resort.

The National report notes that a number of other hotels also lined up for a launch in Bahrain. These include the Avani and Tivoli brands by Minor Hotels at Bahrain’s Bilaj Aljazayer, which will open its doors in 2024.

Elsewhere, luxury eco-resort Mantis Bahrain Hawar Island is also scheduled to open in 2024. The waterside Shangri-La Hotel Bahrain at the Bahrain Marina is also expected to open by next year.

 

_{photo credit: https://www.marassialbahrain.com/projects/vida-residences}

The total value of Oman real estate deals has grown by 14.2% as of August 2021, compared to the same period in 2020, the official news agency of Oman reported.

Total property transactions reached OMR 1.74 billion (about USD 4.5 billion) for the period, the report said, citing preliminary statistics by the National Centre for Statistics and Information (NCSI).

This continues the growth trend in Oman real estate deals from May this year. The NCSI reported that the total value of Oman real estate deals as of the end of May 2021 had grown by 32.2% from the same period last year, reaching OMR 1.1 billion (USD 2.86 billion).

Oman real estate sales see an increase, mortgages fall

A total of OMR 50.3 million (USD 130.65 million) was collected in government transaction fees from Oman real estate for the period. This represents an increase of 21% compared to the same period last year.

The traded value of sales contracts also saw an increase, although that of mortgages slipped. Sales contracts grew by 51.1% in trade value, reaching OMR 770.7 million (a little over USD 2 billion), and 74.4% by number, totaling 56,611 contracts. The Oman real estate sector saw 32,460 contracts for the same period in 2020.

On the other hand, mortgage contracts dropped by a marginal 0.6% in traded value for the period, amounting to OMR 959.6 million (USD 2.49 billion), as compared to OMR 965.1 million (USD 2.5 billion) last year.

They did, however, record a total of 12,402 contracts as of the end of August 2021, growing by 55.2% from last year’s 7,989 contracts for the same period.

Title deeds also registered a significant increase in number, especially those issued for GCC citizens. A total of 165,417 title deeds were issued as of the end of August 2021. This represented an increase of 54.3% over last year, where 107,192 title deeds were issued.

Deeds in favour of GCC citizens saw a marked increase growing by 94.3% to a total of 443, from 228 deeds during the same period last year.

At the same time, the traded value of exchange or barter contracts saw a steep decline, falling by 73.7%. This represents a further drop from the 2.7% decline seen in barter contracts during the end of May this year.

Barter contracts recorded OMR 13.8 million (USD 35.84 million) by end of August 2021, compared to OMR 52.5 million (USD 136.36 million) last year.

A recent Knight Frank survey found that in the Middle East, ESG considerations are now a top priority for real estate investors.

When it comes to ESG factors, environmental aspects have traditionally received the most attention. Last year, global carbon emissions fell by a record-breaking 5.8% yet at the same time, 2020 also saw the highest concentration of carbon in the atmosphere to date. As the global economy rebounds post-pandemic, C02 emissions worldwide are forecasted to grow by 4.7% over the next year.

With temperatures in Kuwait reaching a record-high of 53 degrees last summer and sea levels rising in many Middle Eastern countries, environmental factors pose significant threats to the region. Where real estate is concerned, climate change incurs high costs and both physical and transitional risks.

The building and construction sectors account for 40% of global carbon emissions and one third of the world’s energy consumption. With global building stock projected to double by 2050, the demand for energy and construction is also set to continue rising.

Social and governmental factors are also gaining importance in real estate development and investment choices. In the Middle East, governments are increasingly introducing regulatory guidelines and state initiatives to facilitate the sustainable growth of the sector.

The link between climate change and policy

In 2017, the UAE recognised climate change as a key policy, approving the National Climate Change Plan (2017-2050) which focusses on three pillars: mitigation, adaptation, and opportunity.

“Currently, around 50% of energy in the UAE goes into cooling and air conditioning systems. As temperatures rise, we require more cooling. This needs to be from sustainable sources” Qais Bader Al Suwaidi, Director of Climate Change at the Ministry of Climate Change & Environment said in a recent Savills panel discussion.

Environmental factors are now driving policy change in the region, for example, the UAE recently pledged to reduce emissions by 25% by 2030 to mitigate the effects of climate change.

Expo 2020: Promoting sustainability

This trend is also reflected in Expo 2020 which aims to encourage global interaction around the theme of sustainability via a specific sustainability pavilion named Terra. Once the event concludes, the site will be repurposed into a mixed-use development comprising commercial, residential, leisure and hospitality spaces, known as District 2020.

“80% of the Expo 2020 buildings will be repurposed into District 2020 … The site has received glowing recognition from CEEQUAL, becoming the first project in the Middle East to be rated excellent,” Nadimeh Mehra, Vice President, District 2020 said.

Considering social factors, District 2020 aims to provide residents with a good work-life balance featuring multiple leisure spaces such as bike and running tracks, parks, and restaurants.

“We have built a public realm that engages communities to come together. The commercial ecosystem is centred around the ability of residents to collaborate with one another, so our buildings allow for ease of interaction,” Mehra added.

Private sector – Brookfield

ESG and sustainability considerations are also gaining importance amongst real estate developers in the private sector.

In the region, a growing number of LEED platinum rated buildings have emerged over recent years as companies strive to achieve the highest rating that can be given by the US Green Building Council.

“It is increasingly important for developers to align with a globally recognised building system, so that [the industry] can work towards a global ranking,” Rob Devereux, CEO of ICD Brookfield Place, a new lifestyle and business development in Dubai, said.

Seeking to achieve a high sustainability rating, the construction of the development will use 48% less water than the industry baseline and will be made up of 30% recycled materials. Regarding social factors, ICD Brookfield Place features over 4 acres of green space, arts and events programs, and air quality that is 80% above national standards, Devereux added.

_{Photo credit: https://www.expo2020dubai.com/en/understanding-expo/participants/special-pavilions/sustainability}

Thailand-headquartered global hotel operating and investing chain Minor Hotels is marking its entry into Egypt with its Oaks brand, according to a recent report. The residential property will be owned by private real estate developer Margins Development.

The Oaks Egypt New Capital Apartments and Suites will be located in Egypt’s New Administrative Capital. Construction will commence early next year, and the property is expected to open in 2025.

The residential property will feature about 400 apartments and suites, spread across two wings. They will be centrally connected via the rooftop, and on the ground floor, which will also have a retail area. One of the two wings will have a mix of suites and studios, as well as branded one- and two-bedroom apartments. The second wing will be dedicated to 203 branded suites.

Other facilities include restaurants, a lobby lounge, a spa and gym, meeting and co-working spaces, as well as a rooftop pool deck accessible by both guests and residents.

Minor Hotels is growing its MENA footprint

The Egypt foray is “strategically important” for Minor Hotels, which aims to grow its presence in the MENA region, Group CEO of Minor International and CEO of Minor Hotels Dillip Rajakarier said.

The hotel chain recently launched its Bahrain operations, in August this year. It signed an agreement with the Bahrain Real Estate Investment Company (Edamah) to develop two hotels in Bahrain under the Avani and Tivoli brands. The hotels will be located in Bilaj Aljazayer and will open in 2024.

Minor Hotels has a portfolio of 527 hotels and resorts across 55 countries. Of these, 31 hotels and resorts (both operational and in progress) are located in the MENA region. These represent the group’s Anantara, Avani, Tivoli and Oaks brands.

Minor Hotels also has plans to launch two new brands in the MENA region, NH Collection and NH Hotels.

“We are looking to invest in this relationship with Minor Hotels to launch new properties soon in other areas in Cairo and on the North Coast,” Sherif Khalil, CEO of Margins Development, said about the collaboration.

“Oaks New Capital Apartments & Suites is the first branded residence in the New Capital strategically located at the main spine of the central park with magnificent views of the green river. Minor Hotels are a reputable hotel group worldwide and we are delighted that their first property in Egypt will be in cooperation with Margins Developments,” Khalil added.

Wafra Capital Partners has acquired a contract to purchase 720 West End Avenue, a 16-story building in the Upper West Side in Manhattan, according to the Commercial Observer.

Headquartered in New York, Wafra Capital Partners is an affiliate of Wafra Inc. The investment firm manages investments made from sovereign institutions based in Kuwait and other Gulf states, in the US market.

Wafra Capital Partners will be buying the historic 720 West End Avenue from Netherlands-headquartered Brack Capital Real Estate in a deal that is sized at around USD 165 million, reports suggest. The sale is expected to close in the next few weeks.

720 West End Avenue is situated in a prime location, close to the 96th Street subway hub, Riverside Park and the Broadway Corridor. The building, which was constructed in 1927, was put up for sale in June this year. It will be delivered vacant and gutted.

Redevelopment plans for 720 West End Avenue include condos, senior housing

Potential uses for the building put forward by bidders included condos and senior housing, although it is unclear how Wafra Capital Partners intends to proceed.

Brack Capital Real Estate was considering converting 720 West End Avenue into a series of luxury condos designed by New York-based architecture and interiors firm Morris Adjmi Architects.

Plans included a slew of luxury facilities built into the building, such as a squash court, lounge, pool, fitness center, yoga and pilates room, spas for men and women, an ”adult" lounge, and outdoor and roof terraces. It would also feature facilities such as a dog wash, a music room, a library, a spin room, and a wine cellar.

Further, amenities for children were also included in the plans, such as a children’s sports court, tween play area, party room, gym, playroom, and a "mind lab." This was all in addition to building features such as parking, a laundry room, residential storage, and a bike room.

Plans for the redevelopment were approved by the Department of Buildings and Landmarks Preservation Commission in 2018.

Based on these approvals, Wafra Capital Partners is permitted to add 14,933 square feet above grade and 3,782 square feet below grade if the firm chooses to do so.

Brack Capital Real Estate had earlier acquired the building for US$108 million in 2015. Prior to the acquisition, it was being used as a 352-unit Salvation Army facility for senior housing.

Bahrain-headquartered alternative investment company Investcorp has exited from its investment in a Germany-based multi-let commercial campus, according to a statement.

The company sold its long leasehold interest in Bürocampus Wangen (the Campus), located in the Stuttgart submarket of Wangen, to real estate development and investment company Art-Invest Real Estate.

This is Investcorp’s first European exit, the statement said. Financial terms of the deal were not disclosed.

The Campus is located in a 15-acre (653,400 square feet) plot with a total built area of about 550,000 square feet. It comprises 12 office and research buildings as well as a DIY store. Facilities at the Campus include state-of-the-art research and development space, data centres, a restaurant, and conference rooms.

Investcorp had previously acquired the freehold interest in the Campus from BEOS Corporate Real Estate Fund Germany I, managed by BEOS. The deal was valued at approximately EUR 80 million (about USD 93 million).

This was Investcorp’s first real estate investment in Germany. The acquisition was made in 2018, after which Investcorp re-structured the title and sold the freehold to an institutional investor. It retained the long leasehold interest.

The Campus is home to “several well-known tenants” from the technology and automotive sectors, the statement said.

Investcorp is looking to expand further in continental Europe

“We are pleased to see continued positive momentum within our European real estate portfolio with the first exit of a European asset. The sale demonstrates our expertise in identifying attractive assets in resilient sectors and our success in creating value through restructuring and active asset management,” Neil Hasson, Managing Director, Investcorp European Real Estate, said.

Hasson added that Investcorp had deployed over EUR 1 billion (USD 1.16 billion) in investments over four years. He also said that the company was looking to further its expansion in continental Europe by making “high-value investments in the industrial space and peripheral urban office asset classes."

Investcorp’s European real estate business was launched in 2017. It has since made investments into 80 properties located in the UK, Germany, the Netherlands, Italy, and Belgium.

Earlier this month, it acquired two industrial assets in Scotland and the West Midlands for a combined price of EUR 15.5 million (about USD 18 million). In the same month, it also acquired Via Mecenate, 91, an office property near Milan’s Linate airport. Valued at EUR 70 million (about USD 81.5 million), the deal marked the company’s entry into Italy.