Developer lease option

Dubai: Omniyat Property Service (OPS), a subsidiary of Omniyat Asset Management, has signed partnership agreements with CB Richard Ellis Ltd - Middle East and Jones Lang LaSalle to lease out two of its Business Bay projects: One Business Bay and Bayswater, which have a commercial lettable area valued more than Dh1 billion.

"We were the first to buy in Business Bay and today, with the delivery of our first two projects, we become the first to lease in Business Bay," said Mahdi Amjad, chairman and CEO of Omniyat Properties. OPS, in association with these service providers, will provide customised leasing services. fit-out offerings, rent-free incentives, and property management services in order to attract tenants to both developments.

What has prompted Omniyat to get into leasing? Lloyd Budd, commercial director of Omniyat Asset Management, says, "As the major stakeholder in every Omniyat development, it's in our best interest to see these buildings operate at higher occupancy rates than our competitors.

"Operating through the real estate value chain has always been integral to the Omniyat vision, adds Budd. "Asset management is an essential part of that value chain, and leasing is an essential part of asset management.

"With Omniyat stock over 85% sold out, very few units remain for sale directly from the developer in One Business Bay and Bayswater, the developments we plan to handover this quarter. For this reason, the marketwide drop in sales activity has had little effect on us, and has not influenced our strategy."

"With Omniyat buildings operating at higher occupancy, it will mean a better return for our investors," says Budd. "We believe this will pave the way for long-term loyalty from our customers, who we hope will buy again in future Omniyat developments.

"High occupancy rates will greatly improve the buildings' operation and ensure that Omniyat Strata Management and Facilities Management teams benefit from economies of scale. It requires a big investment on the part of the developer, in terms of intellectual property and set-up costs."