Al Attar Properties acquires office tower for Dh180m

Ahmad A. Rahim Al Attar Properties, one of Dubai's leading developers, has acquired the landmark office tower Kendah House on Sheikh Zayed Road for Dh180 million.

The deal confirming the change-over in management was finalised on April 21.

The tower was originally developed and managed by a Saudi investor, and had the distinction of being the second tallest office tower on Sheikh Zayed Road after the office block of Emirates Towers.

During this period, it has become one of the most sought-after addresses for office space in Dubai, and currently has on its roster names such as British Airways, Ernst & Young, Saks Fifth Avenue and Allianz among the 100 companies in it.

The 40-storey Kendah House originally cost over Dh200 million, including the cost of land, when it hit the market just about four years ago. "We became interested in acquiring the property immediately after the original owner decided to put it to the market," said Ahmad Al Attar, chairman of the Dubai-based firm.

"It has always been our intention to develop and manage upscale projects on Sheikh Zayed Road, which remains a coveted destination for companies to base their offices. We felt the price of Dh180 million was just right to close the deal, and we did it."

There will be a formal change of name shortly to 'Al Attar Business Tower'.

However, the new management does not intend to bring in any major changes to the existing system at the facility. According to Al Attar, two leading banks have approached the management to book space at the tower.

"The policies of the government have ensured that more international companies are coming in with their regional operations," said Al Attar.

"Last year saw a steady increase in demand for prime office space, and this year promises to be no different. I would say that demand and supply for prime developments are running neck and neck. It is the best situation to be in for a developer."

On Sheikh Zayed Road, office space leases for well above Dh60 a square metre, depending on the building and the type of amenities that they offer.

Al Attar believes that the broader high-end office space market in Dubai should see a firming up of rates in the medium term.