Related, Gulf Capital to build $1 billion mall in Abu Dhabi


28/01/2013 09:18 AST  Bloomberg

Related Cos, the New York developer founded by billionaire Stephen Ross, and its partner Gulf Capital plan to build a $1 billion shopping mall focusing on department stores in Abu Dhabi.

Gulf Related, the joint venture undertaking the project, is also aiming construct two towers connected to the mall that will include a 300-room hotel as well as 120 serviced apartments, Kenneth Himmel, president and chief executive officer of Related Cos told reporters in Abu Dhabi on Sunday.

Sowwah Central, as the project is named, is the venture’s second development on Sowwah island, which will be the location for a financial district and Abu Dhabi’s stock exchange.

The mall, due to be completed in 2017, will be financed by a combination of equity and debt, Himmel said. Gulf Related bought the land last year from Abu Dhabi’s sovereign investment fund Mubadala Development Co, which hasn’t yet decided whether it will invest in this project, Himmel said.

Gulf Related may assume debt to fund as much as 60 per cent of the development, designed to include cinemas, health clubs and restaurants, Himmel said. He declined to specify the amount of equity Gulf Related plans to invest in the project or the price of the land.

“Gulf Capital and Related are anchoring this project,” said Karim El Solh, chief executive officer of UAE’s private equity firm Gulf Capital. “We are approaching investors such as sovereign wealth funds, pension funds, insurance companies, financial institutions and family owned companies who are looking for a long-term cash yield.”

The response has been positive, helped by the company’s ability to get commitments for seven- to 10-year leases from retailers it’s in discussions with, El Solh said. Investors should expect an annual yield of 12 per cent to 13 per cent once the mall is fully occupied, he said.

Economic and Business News
2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | News Archive

JAN | FEB | MAR | APR
Most Viewed Companies
Ticker Price Volume
SECO 14.32 2,905,570
GFH 0.19
STC 65.96 1,623,412
DARALARKAN 13.04 97,819,880
EMAAR 10.8 38,418,273
AKHI 40 1,183,119
QIBK 88.5 381,783
Recent News

NBAD Stars Loyaltycard Named Best Prepaid Card
The National bank of Abu Dhabi’s NBAD Stars Prepaid Card has won a prominent recognition as the best prepaid gift card at a recent industry awards event.

The NBAD Stars Prepaid Card, a loy

Emirates NBD Beats Estimates With 25% Quarterly Profit Jump
Emirates NBD PJSC (EMIRATES), the biggest bank by assets in the United Arab Emirates, beat analysts’ estimates with a 25 percent jump in first-quarter profit as interest income and fees growth offset

Dana Gas’ shows strong annual growth
Dana Gas, the Middle East’s largest regional private sector natural gas company, held its 8thAnnual General Meeting (AGM), Chaired by the Company’s Honorary Chairman H.H. Sheikh Ahmed Bin Sultan Al Q

Aldar launches sale of Penthouse Collection at Gate Towers
Aldar Properties, Abu Dhabi’s leading listed property development, investment and management company, has launched the sale of 21 exclusive duplex penthouse apartments at Gate Towers, the Penthouse C

RTA holds two awareness workshops for First Aid, kidney patients
Employees of all sectors and agencies of the Roads & Transport Authority (RTA) commended the awareness campaign recently held by the Administrative Services Department, RTA Corporate Administrative S

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend

Poll

Are you satisfied with your full-service broker?