Business | Investment
Reem to spend Dh2b over two years on projects
Abu Dhabi-based Reem Investments plans to invest in phases at least Dh2 billion over the next two years to develop its two mixed-use real estate projects in the emirate - Najmat and Rawdhat - a company executive said on Thursday.
- By Himendra Mohan Kumar, Staff Reporter
- Published: 00:38 May 16, 2008
Abu Dhabi: Abu Dhabi-based Reem Investments plans to invest in phases at least Dh2 billion over the next two years to develop its two mixed-use real estate projects in the emirate - Najmat and Rawdhat - a company executive said on Thursday.
"The way prices are going up, maybe we'll end up spending more than Dh2 billion. This year alone, a minimum Dh600 million will be spent on both these projects to develop their infrastructure," Naseem Seddiqi, chief operating officer of Reem Investments, told Gulf News in an interview at Cityscape Abu Dhabi 2008.
"This year we have to complete the infrastructure for Najmat and Rawdhat," he said. "End users may start getting possession of their units by the end of 2010 on Najmat."
Najmat is being built on Abu Dhabi's Al Reem Island. The estimated Dh30 billion project will occupy approximately 20 per cent of the island, occupying 16 million square feet. It will house around 80,000 residents. The project is 80 per cent residential, while the remaining is commercial - a mixture of office and retail segments.
The Rawdhat project, located near the old Abu Dhabi airport, is the UAE's first dedicated "develop to lease" community, master planned for the professional expat lease market. It is 85 per cent residential and 15 per cent commercial.
Seddiqi said Reem, the master developer for Najmat, will begin handover of the plots there to the sub-developer next week. "By June, we should be able to do the plots for Rawdhat," he said.
Expansion
Seddiqi also said Reem has started activities in Morocco and has co-invested with other developers in Pakistan.
"We are now looking at India," he said, but declined to say which Indian cities Reem is eyeing. "We have many options that we still have not announced, so I would like to hold back," said Seddiqi.
He added that Reem is a zero debt company. "We have a paid-up capital of Dh1.55 billion. We have used our money judiciously and don't have to raise debt."
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