DUBAI At a time when many developers and investors are involved in disputes over service fee dues, a top official of Union Properties has told XPRESS that it has been able to recover 80 per cent of the charges owed to them.
Ahmad Al Marri, UP general manager, said: “Unlike other developers, we didn’t use tactics like cutting electricity to get our money. Instead we sat down with our investors and discussed their concerns. The Real Estate Regulatory Authority (Rera) too intervened and helped us recover most of our dues.”
UP has been building communities in Dubai since 1987. It started out under the name Union Property Private Limited and later floated a public limited company in 1993. With over 24 completed projects, the company has created a mixed portfolio of commercial, residential and leisure developments such as The Control Tower, Green Community, Uptown Mirdif and MotorCity.
Excerpts from the interview:
Will there be any further increases in your service fees, given that they are thought to be already high?
Rera sets the service fees after liaising with our company auditors. Even if we do increase the fees, it will be within the approved limits of Rera. As a developer, we try to be as transparent as we can with our customers. I personally sit and discuss financials of the community with investors if they wish to know more.
How do you deal with defaulters? How much have you been able to recover?
We have recovered 80 per cent of our pending dues. Unlike other developers, we didn’t use tactics like cutting electricity or banning parking permits to get our money. Instead we sat down with our investors and discussed their concerns. Rera too intervened and helped us recover most of our dues.
Tell us about your upcoming projects.
We have six projects in Dubai – three under construction and the rest in the design stage. Our focus is largely on residential and retail development. The Uptown Mirdif Mall is being expanded to add 46,761 square feet of leaseable space. First phase of the project will be ready by June. ‘Ribbon’ is another mall in MotorCity with 42,000 square feet of leaseable space that will be ready by July-end. On the residential front, we are building 210 luxury three-bed townhouses and 16 duplex apartments as part of DIP Green Community third phase. Construction started in May for an August 2017 completion.
Vertex, another residential project in MotorCity, comprises five high-rise towers with 700 apartments and 65,000 square feet of retail space. The first two towers will be handed over by end-2017. Oia Residence, a G+5 development with 269 apartments and over 300 town-houses and apartments in MotorCity Green Community are other residential projects that we will hand over in the coming years.
You seem to be developing cautiously in Dubai. Any reason?
We are learning from our past experiences and don’t want to overbuild. We conduct feasibility studies before launching a project. For example, we have been getting positive feedback on DIP’S Green Community, prompting us to expand the project. Residents are happy living there and want to bring their extended families into the community. It is an established place with all necessary infrastructure and amenities. We cannot go wrong in this project. Similarly, in our other projects, we are picky about what we build.
Why is retail such an important aspect of your development?
Today developers cannot just build towers and villas. They have to build integrated communities with amenities like supermarkets, pharmacies, shopping outlets and malls. Retail is therefore a very important aspect of realty development.
What are your thoughts on the real estate market?
People are waiting to see what changes occur in the UAE and outside. There is strong population growth in Dubai and there is definitely a good demand. Plus the market is far more mature with Rera’s rules and regulations than before.
Can you tell us which projects you have off-loaded and why?
We sold the Index Tower, Lime-stone and Ritz Carlton in Dubai International Financial Centre. Our motto is ‘develop to sell’. If we find the profit margin of a project low, then we keep it until the market picks up. But if we have achieved our target profit, then we sell it.
