ANC Holding LLC
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Mirdif Hills, a gated mixed-used master-planned community will be built on a 1 million square feet plot of land next to the existing Mushrif Park. The project, announced last year, will be offered on freehold sale to buyers — the only freehold community in Mirdif area.
The launch is happening at a time when the real estate transaction level declined due to the economic slowdown owing to lower oil price and low investor confidence. It is going to be built at a locality that is very popular among the UAE nationals. However, we are just waiting for all the permissions. The development is spread across 3 components: The project, with a built-up area of 4 million square feet, will also host a speciality hospital, to be operated by Abu Dhabi-based NMC Group.
DIRC has registered Dh million net profits last year. It has so far delivered 2, apartments at the Dubai Investment Park, 90 units at Al Nahda, in addition to delivering 3, staff accommodation units at various locations within Dubai. DIRC has also diversified its presence in the hospitality through its subsidiary Al Mujama Real Estate and tapped into the sports fitness sector through its partnership with Al Qudra Sports Management.
Enabling works for the project has already started. Al Salami said, his company is negotiating with a consortium of three banks to raise Dh1. He, however, declined to divulge their name. The project will be developed in four phases by As soon the building permits and other formalities are over, we will award construction contract for the full project.
He said, the sale value of the residential units are expected to range between Dh1, — Dh1, per square feet. We do not want to give the entire project to one company only.
In an exclusive interview with Gulf PropertyAl Salami elaborated his thoughts on a number of issues. Y ou are launching this massive project at a time when things have slowed down in the UAE. What are your thoughts on commercial launch of the project?
Despite the current market situation, Dubai will continue to attract property buyers and investors. The current market situation is a result of lower oil price and low investor confidence.
Yes, the global slowdown affects the real estate market in the region as well as that of Dubai. However, we see a strong demand for Mirdif Hills units. Ever since we launched the project at the Cityscape last year, we have been receiving inquiries for the update on sales campaign and pricing. There are lots of buyers who are waiting for us to launch the sales campaign so that they can start booking apartments.
Most of the inquiries are coming from the UAE nationals as Mirdif is quite popular among the emiratis. This is also the only freehold property being offered to foreigners as well.
So, it will attract investors and buyers. I am not worried about selling out of the project. Then why are you seeking bank finance for the project? As a large developer, we have strong relationship with the banking community. For such large construction activities, we usually engage banks for smooth development and delivery of the projects, regardless of the market condition and sales activities. In case of Mirdif Hills, we will do the same.
This basically guarantees the smooth and timely delivery of the project and we could then fulfil our obligations on the quality of the property and timely delivery. How do you describe Mirdif Hills project from the quality and price point of view? As part of our development culture, we do not compromise on the quality of construction and finishing. Over the last nine years, DIRC has launched projects which offer unparalleled quality and value for money.
Mirdif is one of the most sought-after residential neighbourhoods in Dubai and the Mirdif Hills project offers a unique blend of attractions, complemented by world-class amenities — effectively a self-sustained township, providing tenants a comfortable community living experience in harmony with nature.
What would be the payment plan to ensure that the end-users are not deprived by the wholesale investors in purchasing the apartments at Mirdif Hills. The rest will have to be financed by the buyers. However, we have started talking to the banks and the UAE Central Bank to allow us to develop a better payment plan that will help the buyers to purchase the apartments without having to take too much pressure.
For a 1, square feet apartment, a buyer has to shell out Dh, as 50 per cent payment — if we calculate the price of the apartment at Dh1, per square feet. Then the buyer has to pay 4 per cent of the property value as registration fee and two per cent brokerage commission.
That adds another Dh72, in direct expenses in addition to other charges and fees. It makes property purchase a heavy burden on end users, unless they have the ready cash available. An end-user might be able to pull together 20 per cent of the value of the property during the construction phase.
Somewhere we need to bridge the gap of 30 the balance per cent so that the end-users can dream of owning a quality home in Dubai for living. You have a large inventory of assets that needs to be managed.
How are you managing them? Initially, we used to outsource most of the works — such as cleaning, maintenance and security. However, due to the nature of the outsource business, it becomes a tough choice. For example, when a new batch of security guard is assigned to our properties by the private security service providers, they do not know the residents. That becomes an issue.
On the maintenance side, we have faced multiple problems with suppliers. Some of them do not train their workers and also do not pay well. So, the performance is also not as expected. Besides, in case of a breakdown or urgent maintenance needs, our residents do not get proper services. We have already started to build up the team and we are expanding our operations.
This move will help us to take control of our facilities and manage them more professionally. Sunday, April 8, 6: Rates Latest News Contact.