Dubai: Leading South Korean developer Axon is investing Dh2.56 billion ($700 million) in Dubai's real estate market, its top official said.
Axon Gulf, the company's regional subsidiary, yesterday inked a Dh367 million ($100 million) investment deal with Dubai Sports City to develop a large commercial tower.
"This is the first of our seven projects that we are investing in Dubai involving a total of $700 million," June-Soo Kim, Axon Gulf's chief executive told Gulf News yesterday.
"This is pure Korean investment coming to the UAE. Dubai is a safe and stable market for foreign investment, where the economy is growing.
"Besides, the average return on investment is much higher and faster than many other places. So, we felt this is the right place and time for us to invest in the emirate's real estate sector."
The 30-storey commercial tower will have a built-up area of 431,154 square feet, and will be completed by the first quarter of 2008.
Korea's Heerim has designed the tower while Korean contracting company Shin Sung, has been chosen to construct the project.
Construction of the project will be started in July.
"Price of office space will range from Dh800 to Dh850 per square foot. We are going to start the sale of the tower's commercial space in a few week's time," he said.
"We have two more projects coming in the Dubai Sports City while a further four commercial towers will be built in the Business Bay," Kim said. He said, Axon Gulf is the first Korean property development company to have been registered in the UAE.
Korean investment in the UAE is growing at a staggering rate. Korean investment commitments have crossed $850 million in recent months.
Recently two Korean developers announced major investment in Dubai. Bando and Sung Wong - two construction companies have pledged $350 million each in Dubai's real estate with more investment to come.
However, Korean construction companies, such as Samsung Corporation, Hyunday, Doosan and others are very active in project execution and construction. Korean companies last year secured Dh31.92 billion ($8.7 billion) worth of contracts in the UAE, up from Dh10 billion ($2.7 billion) in 2004.
Finally a good tower for sports city :cheers: