Armada Group plans Dh100m Sharjah project

The Armada Group is raising its profile in the local property market with a new 20-storey residential development in Sharjah's Al Khan area.

Investments in the project, which is in the final stages of design planning, will be about Dh100 million, according to a top official with the developer.

The project will be commercially launched in the market by 2007. There are also plans to get into the retail space, which would most likely be in Dubai.

The Armada Group is already committed to a Dh1 billion development of three residential towers in the Jumeirah Lake Towers project promoted by Nakheel. The towers will put 1,200 apartments on the local market.

Then there is the 57-storey Al Salam tower in Sharjah, on course to be the tallest in the emirate. Entailing investment of Dh400 million, more than 70 per cent of the 280 apartments in the tower have been sold to UAE and GCC nationals.

The promoters expect to wrap up the rest before the year is out.

"The market for landmark shopping facilities in Sharjah is rather limited," said Dr M.R. Hakmi, chairman of Armada Group. "We did have some negotiations with the authorities there, but nothing concrete has emerged.

"What is being seen in Dubai on the property development side happens once in the lifetime of a city. Even with all the projects that have been announced in Dubai over the last two years, there is still a lot of space for further growth compared with infrastructure density in cities, such as Singapore and Hong Kong.

"It is our group's estimate that the level of growth Dubai has been recording on the property development side could continue for well over the next five to ten years.

"On the pricing front, too, there has been a certain amount of firming up in the last six months in Dubai - again, we believe, there is lot more room to grow before Dubai rates can catch up with international ones.

"The majority of the projects that are already under way will be launched fully into the market in stages over the next two to three years."

The Armada Group has primarily been real estate investors. The promoters have in the past been active in United Kingdom property.

In the UAE, it did have investments in the Sharjah industrial and mid-sized residential space. It was with the Al Salam venture that the group went into high-profile mode.

Recently, it announced interest in putting together a Chess City - conceived as a series of high rises with a chess-board theme. "There is nothing concrete on the project as of now," Hakmi said.

"What has been stated is the commitment of the group to undertake such a signature development in Dubai.

"Our investment strategy is founded on doing it with our own funds. We do not carry any debts on our books."

In the meantime, the Armada Group has also committed to setting up a "five or six storey" facility in Dubai Internet City for its headquarters.