#APPROVED: AL ODAID BEACH RESIDENCES (Shams Abu Dhabi)

Launch «ALADAED BEACH TOWERS» billion dirhams

Abu Dhabi Emirates Today

Many real estate company launched yesterday a draft «ALADAED BEACH TOWERS», which includes seven residential and commercial towers on the island at a cost of two billion dirhams Remo.


The Executive Chairman said the company «many», Mahmoud Shebani, in a press statement «the new project will consist of 2400 housing units and commercial, and work will start in the third quarter of the year 2008 while the project will be completed in 2011». He pointed out that Alshibani «was booking the full project by investors and businessmen», pointing out that «will be displayed figurative and models of the project during the exhibition City SCIB Abu Dhabi which will be held during the next few days».


Shebani denied the rumours of a slump in demand for real estate units in the next few years Abu Dhabi, explaining that «the demand for real estate units in Abu Dhabi is still considerably weak and beyond will be provided housing units in the coming period».


He added that «the company intends to increase its investments in Dubai in particular, expansion outside the UAE in countries such as Egypt, Saudi Arabia, Yemen and other», pointing out that «the company currently studying a project includes 3000 Villa in Dubai Land project at an investment cost of not less than six billion dirhams» .

He pointed out that «will start to be implemented early next year and will be put up housing units and villas during the exhibition City SCIB next». A Alshibani «capital amounts to several real estate companies 800 million dirhams, the company has implemented since its founding five real estate projects is the Burj Jeon in the draft Dana Abu Dhabi and tower climber in the draft towers Sahara in addition to three office towers within the project Saraya Abu Dhabi which will be held on the island of Abu Dhabi at a cost Total value of four billion dirhams

kay jay said:

You are absolutely wrong Flares..... Have you even been to AUH to even think of making such a wild thoughtless comment.

Reem Island is in a prime location it is directly opposite AUH mall.

Building work has only commenced and it will no way take 20 years.

I am not going to elaborate to give any "trade secrets " away but please refrain from posting speculation.

Regards,

KJ

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Yes thanks I live here, work here, spend half my time on Reem Island. Misplaced my rose tinted spectacles a long time ago and have severe bouts of pessimism re the delivery of all this which is probably normal for someone so closely involved!! My statement about the island being a dusty construction site is based on fact. Do people really think all those Citiscape models will just suddenly appear overnight and apartment owners will suddenly be living in an 'exquisite slice of natural paradise'? The island is effin' huge, the big 3 developers Sorouh, Tamouh, Reem will need a hell of a lot of help from other sub-developers if they are going to fill the island in the way depicted at these exhibitions. Can't see them getting it or being able to ramp up their in-house teams to cope to be honest. Fair enough in about 5 years time you may have a competed Tameer Towers, Skytower, Tamouh Plot 1, part of City of Lights but what about the other acres and acres - dusty building site. I doubt any of the towers masterplanned for plot 4 will be started at this point. Saying that in 2030 it will probably look half finished.

flares said:

Yes thanks I live here, work here, spend half my time on Reem Island. Misplaced my rose tinted spectacles a long time ago and have severe bouts of pessimism re the delivery of all this which is probably normal for someone so closely involved!! My statement about the island being a dusty construction site is based on fact. Do people really think all those Citiscape models will just suddenly appear overnight and apartment owners will suddenly be living in an 'exquisite slice of natural paradise'? The island is effin' huge, the big 3 developers Sorouh, Tamouh, Reem will need a hell of a lot of help from other sub-developers if they are going to fill the island in the way depicted at these exhibitions. Can't see them getting it or being able to ramp up their in-house teams to cope to be honest. Fair enough in about 5 years time you may have a competed Tameer Towers, Skytower, Tamouh Plot 1, part of City of Lights but what about the other acres and acres - dusty building site. I doubt any of the towers masterplanned for plot 4 will be started at this point. Saying that in 2030 it will probably look half finished.

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Thanks for the in depth analysis, Flares !
When there is work in progress in any place be it a property, small estate, or huge development as Al-Reem Island "it is building site" surely that is the nature of the beast?
I agree if you are constantly going on Al-Reem Island then your perspective is different to someone like mine who goes to AUH every 3/4 weeks. I can actually see progress bring made purely as I do not see it every day and that is not a criticism of you but human behaviour around our surroundings.

Just a small example " R " Tower and (I am sure you know which one I mean) is way way ahead of Schedule. The glass is already going in,yet it does not need to be complete until 9 months time. Now there are others e.g T T which have nothing commenced.

Still I think your estimate of 2030 is slightly exxagerated....

Anyway I'll be there in 10 days so will report the latest.

Regards,

KJ

Meeting with the CFO of Al Odaid

Hello,

On the 1st of November I met with the CFO/Sales Director of Al Odaid Real Estate (part of Al Ghaith Holdings) to talk to him about progress on this project. I am still awaiting independent verification of what he said, but wanted to share a summary of the meeting.

He described themselves as 'putting in the foundations so that they could deliver quickly':

New exterior design: I saw new approved designs of the building facades, which were in my view an improvement. They were 'flowing' and more modern. These new designs will be the basis for a marketing relaunch. (Expect to see the project advertised).

Construction status : Awaiting final approvals from the municipality. He is frustrated by the delay, is ready to build and expects to begin construction in Q1 2009. Delivery, he predicts will be in Q1 2012.

Construction tenders : No tenders will be required as in September Al Ghaith completed the purchase of a controlling stake in WTorre Emirates Construction Company, which is a subsidiary of WTORRE S.A. [needs to be verified]. They have staff (40 engineers and 300 labourers) and are ready to start.

95% End user Finance now available to owners : In June/July they completed corporate loan arrangements with Union National Bank, and have in place a company facility for AED 1.6 billion to meet their construction needs. As one of their most significant customers, they have been able to negotiate 95% LTV mortgage terms for Al Odaid Beach Residences [details to follow].

Al Ghaith holdings : Are one of the largest commercial landlords in Abu Dhabi, own steel companies and have the agency for Aston Martin in the UAE.

In my view construction risks are reduced, there remains some risk of delay, but the availability of end user finance significantly improves mid-term prospects for price-appreciation and liquidity in this project for investors looking to retail.

cheers,

GCC_RE_Analyst