Dubai: There is still room in Deira — Dubai’s original commercial heart — for a brand new office tower and that too a freehold one. Units at the already completed Centurion Star Tower — with views of the Creek — will go on sale this week at Dh1,700 a square foot for spaces of between 800 to 1,200 square foot.
The project represents a joint venture between Royal Star International (RSI) and Centurion Residence Ltd., which is billing it as the first freehold office offering in the Deira locality. Financing facility is being provided by Mashreq Bank. (Emaar has a residential freehold project built during the middle of the last decade and adjacent to the Maktoum Bridge.)
With New Dubai’s commercial clusters such as DIFC, Business Bay and JLT reaching maturity in their development pipeline, office tenants have been gravitating towards this area. But Deira’s commercial space still retains its core clientele. There have also been a trickle of new office developments, albeit non-freehold ones.
Apart from limited new space availability, there is the fact that land values in Deira are among the priciest. But that not deterred the developer of Centurion Star Tower. Interestingly, the developer decided to launch property sales post the completion.
On the choice of Deira, Hamzah Abu Zannad, director of operations at RSI, said: “All the major government establishments — whether it is the Land Department or Economic Department — the airport and other business houses are all based in Deira. So, proximity was a key for us and we wanted the project to be in the heart of the city. We then zeroed in on Deira.”
The offices are being pitched at small and mid-sized enterprises. In all, there will be 168 offices and 22 shops, while amenities include a rooftop pool, four gyms and 375 parking bays. More than 40 per cent of the plot has been given to landscaping.
“Deira rentals are growing at a steady pace due to its proximity to the airport, the ports, metro and other commercial establishments,” said Robin Teh, country manager for the UAE at Chesterton International. “Rentals for commercial property range from around Dh80 a square foot for a shell-and-core unit to Dh150 for prime fitted out space and will grow due to the increase in demand in this part of Dubai.”
For the developer, launch of sales at Centurion Star Tower ticks one box and more are on the anvil. “Through this joint venture we are aiming to launch many other prime properties in the near future,” said Hamzah. “We wanted to go ahead with a ready property instead of going for an off-plan project. It is a great place for any business to just get in and start performing. They can be productive from day one.”