Meydan projects ready for takeoff

Dubai: It has been a very busy week for Saeed Humaid Al Tayer, Chairman and CEO of Meydan City Corporation. And, it's not just because Meydan is hosting the Dubai World Cup, the world's richest horse race.

On Monday, Meydan announced that a gated community of 528 townhouses is to be built for Emirates' pilots. The properties will have facilities, like a clubhouse and commercial centre, and more might be added later.

On Tuesday, he set out some of the details of the $120 million (Dh440 million) long-term, syndicated loan funding for the project from the Indian government-owned, IDBI.

In a show of confidence in Meydan, the bank inked a financing agreement with the corporation last month. Now it has backed its words, with its money. The agreement opens the way for other Indian — and international banks — to support Meydan as it expands its operations and rolls out projects in China, among other targeted destinations. Already new potential backers are knocking at the door.

But, Meydan is not a one trick pony. While it is perhaps best known for the hotel and racecourse, the corporation is building a brand that that will be exporting its property development and management skills to Asia and perhaps beyond.

Since the beginning of the year, Meydan Hotels, has taken over the management of the corporation's two properties, The Meydan and the boutique desert hotel, Bab Al Shams.

"We are fairly satisfied with the average occupancy [of the hotels]," says Al Tayer, "but there is always room for improvement."

The corporation has invested in being able to manage its own marketing and services as it expands the facilities and plans for Meydan City. Rather than just being a seasonal horse racing venue, it will be a year round sports, entertainment and lifestyle destination.

"We have elected to manage our hotels and create a hospitality team to ensure that the facility is not just for the racing season," explains Al Tayer. Increasing the number of meetings, incentives, conventions and exhibitions (Mice) that are hosted at the hotel will be a priority.

Facilities

Meydan City is also planning to increase the range of facilities that will complement the hotel and make use of its management and hospitality services. Horse racing, that remains the soul of the project, will be joined by other equestrian sports. A nine-hole golf course will soon be opened, with a clubhouse and restaurant that will need hospitality services. An international standard soccer field is also on the list of other possible facilities that might be opened around the hotel and grandstand to keep it busy. Spa and health facilities are also on the agenda.

Meydan is also looking at providing the UAE with a big-stage entertainment venue. "We tested the facility last year and the response was very positive," says Al Tayer. Meydan plans to team-up with promoters or bring in big name shows themselves, if necessary. "We are trying to create a lifestyle location that has certain advantages: less density than other projects and the added value [like the hotel and hospitality services] that they can use. We have invested in advance in infrastructure, so [developers can have] a plug-in approach," he explains.

The constant development of Meydan and its business model is part of the forging of a brand that will be taken to international markets — something that has been on the drawing board since the start. The Dubai World Cup race meeting, followed by millions across the world, is in part an essential component of building the brand. No matter the cost of hosting the event, Al Tayer describes the exposure for Meydan as priceless.

Soon after the event was held last year, Meydan signed an agreement for the development of an estimated $4 billion Tianjin Horse City, in China. Al Tayer says the project is on track and they are now waiting for approval by some of the authorities.

China has a reputation for being a very different business environment, but Al Tayer is happy with the experience of Meydan, so far. "The main thing as we move to China is that every party has to be totally satisfied when they raise questions — it's not a small project. I have the utmost respect for their knowledge and their energy and we can assist them in achieving their objectives as soon as possible."

He points out that the Chinese especially like the Meydan business model because it does not involve betting on horses.

With partners in India, that fast-growing economy is also a very important future market for Meydan. "We have established a relationship with financial institutions that will allow us to learn more [about the market] and be major anchors if there are opportunities," says Al Tayer. "I think if we successfully anchor in both [China and India], the rest of the Far East is of keen interest to us," he adds.

As the annual racing season at Meydan reaches its climax, Al Tayer expects the coming year to remain busy on the business front. Asked if more big developments are in the pipeline, he says: "Absolutely. We are in negotiations on one or two projects and hope to make an announcement soon."