Zirve Eki - ISTANBUL REstate

16-17 Haziran 2010
When it was here, the peak, the cost was so expensive for a lot
of people. But today if you go to Dubai, you will get excellent life,
excellent lifestyle at an affordable cost. And this is all the story of
Dubai, affordable for everybody with a brand that is giving you
the excellent service and the excellent retail.
Ahmet Kayhan: Perfect. We just talked about where we were
before. Okay. And we have just talked about where we are right
now, what we have done, where you see. The 2015, there is Abu
Dhabi 2013, right? There was Dubai 2020. The vision changed,
right? Most like the Deira Palm is not coming soon. We saw the
Jebel Ali Palm is not coming, we see the world islands won't be
there tomorrow, right? So, the vision changed? Where do you see
yourself as the governor side and as a resident as well? I want to
hear that as well. Where is Dubai heading right now? What is
going to happen with Nakheel? what is going to happen with all
those projects?
Marwan Bin Ghulaita: What I think and truly think about the
project that is in Dubai. The world is still there. Palm Jebel Ali is
still there. It is an existing structure. It is there. But the game is
finished. We have proper plan now. The planning is better now
for Dubai. That growth was not natural. But if you look at the
graph from the start to today with a proper regulation, it will be
a natural growth, because as you guys all knows, real estate is
about long term investment. And this what is going to happen in
Dubai. Palm Jebel Ali will be there. The World is already there. And
the development has started and the Al-Nakheel to come new
approach by that by consolidating those island together and come
with new ideas. And all those land is sold to investors where they
are going to build it. But the base is going to be, will study. It is
not going to like before that. Everybody is rushing everything. No.
Now there is proper plan to make sure from my side or from land
department side to make it a sustainable natural growth. It is not
like before. So we have learned a lesson that a natural sustainable
growth is 100 times better than a jump like that. So this is what
we promise. This is what we are introducing. This is where we see.
Dubai experience...
Ahmet Kayhan: This is the government's view as well.
Gayrimenkul Zirvesi 10
Marwan Bin Ghulaita: This is a government view. Dubai
infrastructure, Dubai brand, it is there for a better tomorrow. It has
not vanished or not stopped because, as they said, if have the hope,
you will continue working for the better tomorrow.
Ahmet Kayhan: Doctor, I am going to ask you from another
perspective. Unfortunately, we don't have Mr. Alex here. I will be
blaming Mellah because of leverage. There are other bankers I can
play them as well. But foreign developers perspective, the leveraging
game is not there any more. You don't have off plan sales. I know
that you are trading. You are investing right now. You are buying
or yield generate your land and the game changed heavily for you,
right? How do you see, how do you angle yourself for the future
in Dubai?
Mosab AlJassim: As you said Ahmet, there are still opportunities
in Dubai but the game has changed. So the private sector is always
very dynamic. We have created our own solutions and created
trades that will still make money for us. We, for example, we do
consolidations, we do swaps, where for example an off plan
developers comes and launch a project. And today he is not able
to continue building this project. We have, on the other hand, other
developers who have fully completed buildings but with no buyers.
So as investments house, for example, we go and acquire these
ready buildings and take the buyers from the off plan building.
Make the off plan developer happy. He is getting rid of his liabilities
and satisfied, the ready building developer because he is going to
sell it today. So this makes a lot of money for us as well. On the
other hand, today we can acquire asset at a very attractive prices
and we can basically yield 12 to 15 percent per annum which is
very attractive for us as investors when it comes to rental year. So
this another sector. When it comes to...
Ahmet Kayhan: And these are around like 10-12 percent, right?
Mosab AlJassim: Yes. It is even sometimes you can get 12 to 15
percent and with an institutionalized back up. When you have and
the other real estate trendlers. Now we develop with an off take
agreement. So we have off takers from today like hyper markets.
Ahmet Kayhan: Emirates.
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