Star power cashes in on desert glitz

Stars have been flocking to Dubai over the past few years, having their names attached to real estate projects.

The reasons these celebrities have been getting involved are varied, but the reason their names are in demand is simple, according to Ahsan Hassan Darvesh, managing director of the Darvesh Group, a Mumbai-based company associated with the construction industry.

"People want to feature themselves and consumers want value. And value is added by a name."

The opportunity to see an investment grow significantly is also driving the need for names, said Michael Tolan, executive vice-president of Dubai-based PKN Group.

"In the United States if you have a $10 million-plus investment portfolio, there are only a few things you can do with your money to make it appreciate fast. For example, if you put your money into Greenland, chances are that there isn't going to be a big lunge.

"And if you put your money into California right now, it's a depressed market with all the trickle-down economics of subprime lending. There's an economic meltdown in the real estate market," he said. "But then there's this amazing place called Dubai which is going great guns."

Since most celebrities lack knowledge of property development, being a spokesman seems to be the primary way for celebrities to get involved in the real estate market.

"It's more about a partnership," said Ivana Trump when she announced her alliance with Darvesh Group. She is getting ready to embark on several property projects across the region.

Trump said celebrities often don't have experience in construction or interior design. "They are really just the spokesperson for the project and investors come because a name does have a value. It has a certain cache to it."

Ivana herself blends star status with genuine business know-how in her field, as she has oceans of experience in the development and design of real estate, such as Trump Casino in Atlantic City.

Launching in Dubai, Trump's Le Diamond tower will be the first of 'Brand Ivana' that will be replicated in various locations around the globe.

The celebrity boom isn't just in Dubai. As Dubai skyrockets in all sectors and the borders strain at the seams as more people want to join in, the PKN Group plans on bringing the joie de vivre spirit of Las Vegas to Ajman with the PKN Princess Resort.

The mantra

While comparisons between Las Vegas and Ajman aren't glaringly obvious at first, Tolan said the "If you build it, they will come' spirit that drove Las Vegas is the answer to the cynics who wondered who would bother to go out into the middle of nowhere for fun.

"It's kind of what Dubai's mantra should be," Tolan said.

The first star to invest in the PKN Princess Resort is Patrick Swayze. And more celebrities will have signed up to be involved in the investment by June, according to Tolan.

Most of the celebrities partnering with real estate developers are coming not from Hollywood but from playing fields.

The Trilogy project in Business Bay, involving sporting legends Boris Becker, Michael Schumacher and Nikki Lauda in conjunction with ACI real estate, recently sold all the units in its Dh2.2 billion towers.

"I'm very fortunate these days to travel around the most beautiful destinations, and I've seen what's good and what's going to be hot," said former tennis great Boris Becker, speaking at the launch of his tower nearly two weeks ago.

"When I came to Dubai for the first time during the 90s, it was for tennis. I've been fortunate enough to have one career, but in any athlete's life there comes an end."

Retired Formula One driver, Michael Schumacher said that, now his racing days are over, Dubai offers plenty of potential, as many things are changing so quickly in the city. Ernie Els and Tiger Woods have their respective golf courses.

Then there are those who are buying properties privately. Giorgio Armani is currently developing his Armani hotel in the Burj Dubai with Emaar. The Beckhams already have property in Dubai, with the rest of the England squad rumoured to be keen as well.

Rod Stewart and Sir Richard Branson already signed up for islands on The World, as it emerges from the Gulf, adding to Nakheel's celebrity bank.

A Dubai-based celebrity website has reported that Brad Pitt and Angelina Jolie are also buying an island on The World, in the shape of Ethiopia. Tommy Lee Jones and Pamela Anderson missed out on buying "Greece," as a European aristocrat has already snapped it up.

"These people who have a high net worth and a high profile can buy a villa for example, hold on to it for a while and let it appreciate, and when they flip it, because it was their villa, they make money off that," Tolan said.

"Star power and the association to star power gives people an enhanced feeling of self-worth in some strange way."