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Construction Paradise
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Discussion Starter · #2 ·
Daman announces AED 1.6 billion 'The Buildings by Daman' at DIFC

Daman Asset Management, a leading investment firm in the GCC region, today announced 'The Buildings by Daman' Project, an AED1.6-billion (USD 450 million) real estate development in the Dubai International Financial Centre (DIFC).


'The Buildings by Daman' at DIFC.
The announcement follows the acquisition by Daman of a 220,000 square foot plot of land in the DIFC following an open tender process during 2004.

The project is being financed by a US $ 100 million private equity real estate fund structured along internationally recognized lines. This unique ownership structure, along with the overall project finance model which includes non-recourse debt and re-invested project revenue, provide investors with the opportunity to participate in a major development through a special purpose structure.

The Fund will provide the equity component of the development funds for the project, which will also be funded with a significant debt component as well as re-invested project revenue.

'Real estate developments in Dubai have traditionally been funded by single owners that have invested a great deal of equity in a single project and secured financing by collateralizing assets beyond the scope of the project. In this project, Daman is bringing a globally recognized methodology in project finance to Dubai,' said Mr. Shehab M. Gargash, Managing Director, Daman.

The US $ 100 million investment was placed successfully with investors in units of $ 5 million and was successfully closed by December 30, 2004. 40% of the capital was raised from international investors and Daman has taken a 5% stake in the project.

'Investors recognized our innovative approach and the Fund was fully subscribed almost immediately,' said Mr. Gargash. 'The concept is new to the region and attracted top tier investors from around the world including select financial institutions and high net worth individuals. We expect to begin distributing dividends as early as 2008.'


The Buildings by Daman
A major mixed use development project, The Buildings by Daman will cover more than 1.6 million square feet of built up area including freehold apartments, offices, a luxury hotel and retail space.

The Fund is structured as a special purpose company that was registered in the DIFC in September, 2004. The vehicle, Daman Real Estate Capital Partners Limited, has a Board of Directors that represents investors in the Project and oversees Daman's performance as the Manager of the Project. The establishment of Daman ReCap in DIFC adds another layer of transparency to the Project, given the internationally recognized corporate governance framework that is codified in the financial centre's legal structure.

Investment returns are expected to come from both operating income generated by the lease and management of the completed properties and capital gains upon the sale of specific interests in the property.

'We have structured the investment opportunity to operate from the investor's point of view very much like any fund. Investors will contribute equity, and will benefit from dividend income as the project begins to generate cash flows and capital gains as exits take place,' said Mr. Gargash.


Architect Appointed; Planning in an advanced stage
Daman also announced that US architectural firm Perkins and Will has been appointed as the Design Architect for the project. The firm, established in 1935, is one of the world's largest architectural firms, and has completed projects in 49 US states and 43 countries around the world. It has fifteen offices throughout the United States and internationally, and is a past recipient of the American Institute of Architects (AIA) Firm of The Year Award.

UAE-based Multi-Property Development, a development management organization whose principals have over 30 years combined experience in UAE and international real estate development management, have been appointed as Development Managers. The Concept Design for the project has been completed, and detailed design is scheduled for completion by June 1, 2005. Ground-breaking is scheduled for December, 2005.


Project will generate value from vision of DIFC
The Project will generate value out of the unique vision of the DIFC as a world-class financial centre, which is anticipated to result in a steadily increasing demand for office, residential retail and leisure real estate within the DIFC. Several features governing the regulation of business establishments and persons within the DIFC will create further incentives for its development, including a 50 year tax-free treatment to be extended to establishments and persons of any nationality, as well as the ability to lease, transfer, and grant security interests, including mortgages, over property, unrestricted transfer of capital and profits from DIFC to other parts of the world and other benefits derived from its status as a legislatively-declared free-zone. DIFC's location in downtown Dubai and plans to include a metro station in DIFC that will be operational by 2009 are also features that will add value to the Project.

'We are confident that location in the DIFC adds significant value to the project, because of strongly codified freehold rights, tax exemption commitments and other free zone features, and, most of all, the strong track record of the Government of Dubai in providing the infrastructure for the private sector to flourish,' said Mr. Gargash.
 

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Construction Paradise
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Discussion Starter · #6 ·
Daman unveils Dh1.7b property venture

By C.L. Jose, Staff Reporter

Dubai: The Dubai-based investment firm, Daman Asset Management, has embarked on a $450 million (Dh1.65 billion) real estate development called The Buildings by Daman, in Dubai International Financial Centre (DIFC).
"Real estate developments in Dubai have traditionally been funded by single owners who have invested a great deal of equity in a single project and secured financing by collateralising assets beyond the scope of the project," said Shehab M. Gargash, managing director of Daman, at a press conference.

The Buildings by Daman will cover more than 1.6 million square feet of built-up area including freehold apartments, offices, a five-star 100-room hotel and retail space. The project will have an office tower.

The Buildings by Daman is being financed by a $100 million (Dh367 million) private equity real estate fund structured as a special purpose vehicle (SPV) and was registered in DIFC in September 2004. While the $100 million will act as equity, the remaining $350 million (Dh1.2 billion) needed for the project will be raised through a combination of borrowings from banks and reinvestment from the project's revenue.
 

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, , and , Fade to Black.
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is there really enough space for all these tall building
thought that were ment to large ammount of open space in DIFC
 

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DIFC will continue also on the other side of the road that pass behind Emirates Tower.
 

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Under the Burj
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the name is rather......

"up themselves" for lack of a better word.
 

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They're nice but am not sure the overlook of DIFC will be uniform, many different designs are launched. Nonetheless, some impressive components.
 

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South Straddie QLD
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this tower is the mirror (ish) of the union props tower Liberty towers. Both are L shaped buildings forming a half square plaza
 

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We will not be the last
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SA BOY said:
this tower is the mirror (ish) of the union props tower Liberty towers. Both are L shaped buildings forming a half square plaza
Yes, I think there must be a design brief for all buildings in DIFC as they all have a similar theme. (Park Towers excepted)

I think the Trade centre residence building is also L shaped.
 

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Construction Paradise
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Discussion Starter · #17 ·
Daman tower bankrolled by unique building fund


Daman’s move could pave the way for similar deals.


A unique single property fund has been set up to finance the construction of a US $450 million (AED1.6 billion) tower project in Dubai.

Investment firm Daman Asset Management believes that the move will pave the way for more similarly structured deals in
the region.

Daman has already raised $100 million from a group of 14 private investors — each contributing $5 million

This will provide the equity component of the development funds for the project, which will also include a significant debt component.

According to Daman, negotiations are currently underway with several international banks to secure a loan of $250 to $325 million for the project.

Daman managing director, Shehab M. Gargash, said: “Real estate developments in Dubai have traditionally been funded by single owners that have invested a great deal of equity in a single project, and secured financing by collateralising assets beyond the scope of the project.

“In this project, Daman is bringing a globally recognised methodology in project finance to Dubai.
“The concept is new to the region and has attracted top
investors from around the world, including select financial institutions and high net worth individuals. We expect to begin distributing dividends as early as 2008.”

Designed by US-based architect Percy and Will, the building will be a major mixed-use development project that will offer more than 160 000m2 of built-up area, including freehold apartments, offices, a luxury hotel and retail space.

The building will be made up of two main sections: A lower rise office building forming a T-shaped configuration, with a taller, 58-storey, 205 m-high residential and hotel building.

Contactors working on the project are expected to break ground in December 2005 and are scheduled to complete the building in early 2008. Multi-Property Development is project manager.

Partner Andrew Butter said that the packaging strategy has yet to be decided, but separate enabling works and piling
contracts will be let before a main contract is let to a grade A
contractor for the completion of the superstructure.

The announcement follows the acquisition by Daman of a
22 000 m2 plot of land in DIFC’s Park Avenue district following an open tendering process in March 2004.
 

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, , and , Fade to Black.
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of the more common case of almost never knowing
 
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