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


28/01/2013 09:18 AST

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.

Bloomberg
Economic and Business News
2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | News Archive
Most Viewed Companies
Ticker Price Volume
SABIC 77.76 6,151,692
SPIMACO 34.58 298,609
SAGRINSURANCE 19.01 353,868
RIBL 14.43 443,699
TAWUNIYA 79.63 239,699
ALMARAI 84.59 297,011
EMAAR 6.42 10,430,398
Recent News

Abu Dhabi's First Gulf Bank Said Raising $1 Billion Loan
First Gulf Bank PJSC, the United Arab Emirates’ third-biggest bank by assets, is seeking to raise about $1 billion from a syndicated loan to boost lending as liquidity in the economy tightens, two ba

UAE stocks higher at close of trade; DFM General up 1.61%
United Arab Emirates stocks were higher after the close on Thursday, as gains in the Services, Real Estate & Construction and Finance & Investment sectors led shares higher. At the close in Dubai, t

Emaar Pushes On With Creekside Despite Slumping Dubai Property Market
Emaar Properties is offering hundreds of new luxury homes in Dubai that could sell for as much as 3.8 million dirhams ($1 million) each just as the city’s residential real estate market posted the wo

Saudi Arabian Industrial Investments names CEO
The recently formed Saudi Arabian Industrial Investments Company (SAIIC) has appointed Rasheed M Al-Shubaili as its chief executive officer (CEO) with effect from September 1.

Abdullatif A

SABIC cuts steel prices by SR 200 in all the regions of the Kingdom
The Saudi Basic Industries Corporation ( SABIC ) announces the reduction in the retail price of rebar by SR 200 per ton in all regions of the Kingdom, effective Tuesday, September 1, 2015. Abdulaziz

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

Poll

Which of the following do you think is the best long-term investment?