Developer Select Property has said that the value of GCC real estate is likely to reach US $4.43tn this year, and show a compound annual growth rate (CAGR) of 2.65% through 2028, to achieve a market volume of $5tn. It added that the GCC’s residential real estate value is on pace to grow at a CAGR of 2.85% to hit $3.43tn.

With the region appearing to have sidestepped any negative ramifications of a global recession, investors are leveraging this economic strength by seeking global investment opportunities to diversify their income, the firm stated.

Discussing the UK, the developer noted that rental prices are projected to grow by 15.9% between now and 2027, thanks to several key factors including increased investment interest from the GCC. From June 2022 to June 2023, average rental prices throughout the UK increased by 5.1%. The rental demand in prime city centre locations like Manchester is at an all-time high with rental yields of up to 8% being achieved annually.

The developer also said that the promising investment potential has contributed to a forecast of more than $3bn from the Middle East being invested in the UK’s real estate sector in 2024.

“With its resilience during economic uncertainty in recent years, the UK has maintained its long-standing position as one of the world’s smartest choices for property investment,” said Select Group CEO Adam Price.

He noted that the GCC has played a key role in spurring this growth as intelligent investors have taken notice of the market’s increasing property prices and competitive rents to capitalise on both short- and long-term returns.

He concluded, “With the GCC’s strong economic performance holding steady, the UK’s real estate sector appears poised to remain a beneficiary for the foreseeable future.”

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Source: ME Construction News

Developers Dutco and Ellington Properties have announced the launch of a new waterfront project – One River Point – at Business Bay in Dubai, which will house a collection of 295 residences with a mix of studios, one-, two-, and three-bedroom apartments and penthouses.

The announcement comes on the back of the strategic alliance announced earlier this year to develop several premium residential developments in major communities extending well beyond Dubai and the UAE.

Set for completion in the second quarter of 2027, One River Point promises to be a jewel in the heart of the thriving Business Bay neighbourhood. Beyond exceptional living spaces, One River Point offers a host of key amenities catering to the wellness-oriented and sophisticated lifestyle of its residents.

Apart from two resort-style infinity pools and a dedicated children’s pool, the building will also feature a fitness studio with provision for adult climbing as well as a yoga studio with a virtual trainer on the projector screen. Moreover, residents will also have access to an immersive experience room with a full projector screen, outdoor and indoor kids’ play areas, a pets’ wash and play area, and open terraces. All residences will boast panoramic vistas of Dubai landmarks, such as the Dubai Water Canal, Burj Khalifa, and Burj Al Arab.

Dutco Group CEO, Nelson Gibb said, “The launch of One River Point marks the onset of our long-term partnership with Ellington Properties and realisation of our shared vision to further elevate the value proposition of major residential communities like Business Bay. We are confident that One River Point with its magnificent inventory and distinctive amenities will receive a strong response from both our current and prospective audiences.”

Elie Naaman, Co-Founder & CEO (International) at Ellington Properties added, “As we continue to deliver aspirational and design-led addresses in prime neighbourhoods of Dubai, our strategic partnership with Dutco – with their wealth of experience in real estate – is further strengthening our endeavour to provide high-quality lifestyles and long-term value to more communities in the city. The launch of One River Point marks a significant step forward in our expansion plan under the Dutco Ellington brand.”

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A US $1bn credit package has been approved by the Inter-American Development Bank (IDB) for a new bridge over the Paraná River in Argentina.

The plan is to construct a four-lane bridge 9km away, featuring a 772m cable-stayed span, 5.6km of viaducts, in addition to 28km of associated highway.

According to a report, the board approved a $700mn credit line, as well as a $345mn first loan to build a bridge between Chaco and Corrientes, as well as access roads. The $345mn loan will fund the initial construction phase, project supervision, and socio-environmental mitigation. It has a 25-year repayment term and a 5.5-year grace period.

The two provinces are currently connected by the two-lane General Manuel Belgrano Bridge between Resistencia and Corrientes, but this has become insufficient for traffic demand, as per a report.

The loan will also be matched with a $100mn local contribution, the report concluded.

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Saudi Power Procurement Company (SPPC) has announced that a consortium of global clean energy leaders – Abu Dhabi Future Energy Company (Masdar), French utility major EDF Renewables and Saudi infrastructure specialist Nesma Company – has won the bid to develop a 1,100 MW solar power plant at Madinah in Saudi Arabia. The Al Henakiyah Solar Plant, which is being set up at a total investment of US $1bn, is expected to reach financial close early next year and connect to the grid in 2025.

Once operational, the Al Henakiyah Solar Plant is expected to power more than 190,000 homes per year in the Saudi city and displace more than 1.8m tonnes of carbon dioxide annually. It will help achieve the target of increasing the share of renewables in the country’s energy mix to around 50% by 2030.

“We are proud to have won the bid to develop the 1,100 MW Al Henakiyah Solar Plant, further strengthening our partnership with Saudi Arabia. The kingdom is a key strategic market for Masdar, and we are committed to supporting the Ministry of Energy and the SPPC to achieve the targets set out under Vision 2030 and the Saudi Green Initiative, as the country accelerates its green transition toward net zero emissions by 2060,” said Masdar CEO Mohamed Jameel Al Ramahi.

Set to be one of the world’s largest single-site solar plants, the project will be developed, built, owned and operated by the consortium as part of a 25-year agreement with the off-taker SPPC.

Further to this, SPCC has signed a power purchase agreement (PPA) with the winning consortium, which clinched the deal after submitting the most cost-competitive bid of $16.84 per megawatt hour.

With plans to boost the local economy, at least 19% of the equipment, materials and services will be provided by Saudi companies during the construction phase, said SPCC in its statement. In addition, during the first 10 years of operations, Saudi nationals will make up 50% of the project’s workforce. This proportion will rise to 75% during the project’s entire operational life.

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Developer IMKAN has launched retail and commercial leasing at Pixel Plaza, which the developer says is a lifestyle destination that has been developed for creators and innovators. Offering 12,000sqm of retail space, the plaza is located within the Pixel residential development, which blends contemporary design with comfort and convenience, the developer noted.

The location of Pixel Plaza is one of its biggest draws, IMKAN said. It is situated within Pixel, which is billed as the first mixed-use residential development, and the most vibrant community within the Makers District on Al Reem Island.

Pixel comprises seven towers and 525 residential units, offering a future-forward living experience to its creative-led residents. The residential towers are strategically situated around Pixel Plaza, a pedestrianised square that serves as the heart of the community. The plaza is surrounded by gardens, adding to the peaceful atmosphere of the development. It is also just a short walk from Makers Beach, Reem Island’s only beach, adding to the allure of the development, the developer explained.

“IMKAN forms partnerships that prioritise the needs of both residents and visitors, delivering exceptional experiences that surpass conventional community living standards. Our approach is defined by agility and originality, as we continuously aim to create destinations and experiences that set a new benchmark for community living. At Pixel Plaza, we have created a space that fosters connectivity among communities. From co-working spaces to homegrown restaurants, our commercial and retail offerings cater to all aspects of daily living,” explained Engineer Suwaidan Al Dhaheri, CEO of IMKAN Properties.

Pixel Plaza will cultivate a vibrant culinary culture, catering to the diverse tastes and preferences of residents and visitors. The co-working space will offer a modern and collaborative environment for remote workers, freelancers and entrepreneurs to encourage productivity and innovation. While retailers will offer a variety of products and services appealing to the neighbourhood and visitors.

With all the essentials just a short walk away, Pixel Plaza beckons as the perfect place for thriving businesses to establish their presence by offering a dynamic and strategic location. The plaza’s unique appeal lies in its potential to connect with a discerning customer base, fostering long-term loyalty and brand affinity. Furthermore, this distinctive community embodies a culture of creativity and community building, enabling businesses to partake in an unparalleled ecosystem that unlocks opportunities and propels growth, the statement concluded.

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Red Sea Global (RSG) has said it will operate its own luxury hotel brand at The Red Sea destination, Shebara. The hospitality destination is expected to open in summer 2024 and is expected to be the first resort to be owned and operated by RSG at The Red Sea destination.

Taking shape at Sheybarah Island in the Al Wajh Lagoon, the resort is home to stainless steel orbs, and is now actively recruiting a world-class operational team ahead of opening.

Shebara joins a roster of international hospitality brands operating at The Red Sea, including St. Regis and Ritz Carlton Reserve, as well as Six Senses, which is receiving guests as of this month. The Shebara reveal follows an announcement last month that RSG is also developing Thuwal Private Retreat, an exclusive, island destination that will also be wholly owned and operated by RSG, the statement from RSG noted.

“It has long been our mission to extend our pioneering approach to regenerative tourism across a wider portfolio of brands and subsidiary companies, to create an ecosystem that will drive meaningful change in the global tourism industry. Shebara is a beacon for all that RSG stands for, showcasing the very best in Saudi hospitality while setting new standards in responsible development and sustainable operations,” said John Pagano, Group CEO of RSG.

Shebara is taking shape on Sheybarah Island, which features a 30-to-40m reef drop-off, and will feature 73 keys, including overwater and beach villas. Guests can arrive either by a 45-minute boat ride from the mainland or 20-minutes by seaplane.

Designed by Killa Design, the design of the resort centres around reflections of nature. Each space has been designed to flow with its environment, with the stainless steel villas reflecting the colours and surface patterns of the ocean and the intense colors of the sky as they change throughout the day. The overwater orbs are cantilevered over the water, which creates an effect of a string of pearls levitating above the water, the statement pointed out.

Shaun Killa, Design Director and Founder of Killa Design explained, “Shebara is a wonderful example of what is possible when creating beautiful yet meaningful design. It demonstrates how innovative architecture can gracefully flow into nature, with pods that reflect and refract light from the sun, the sky and the sea to naturally blend with the environment. From the eco-materials chosen to the lunar positioning of the villas, our priority has been to honor the natural beauty that exists here, while creating a resort that embodies modern luxury.”

Development of Shebara is said to be taking place at pace, with all 38 stainless steel overwater villas now in place. While the first overwater villa took nine hours to install, the developer perfected this process so that the last villa was in place in under two hours. So far 25 of the beach villas have been installed, and substantial progress has been made on the other front and back of house structures and infrastructure.

As with the whole of The Red Sea, Shebara will be powered by sunlight, day and night with its own dedicated solar farm, which includes more than 11,000 PV panels. In total, RSG has constructed five solar farms to power the first phase of the destination, with more than 760,000 PV panels installed, the statement explained.

Last month The Red Sea welcomed its first guests. Two of its hotels are now open for bookings and the Red Sea International Airport has been receiving a regular schedule of flights since September. Upon full completion in 2030, the destination will comprise 50 resorts, offering up to 8,000 hotel rooms and more than 1,000 residential properties across 22 islands and six inland sites. The destination will also include luxury marinas, golf courses, entertainment, F&B, and leisure facilities, the statement concluded.

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Jubail Island has revealed an extensive line-up of key amenities that are ready to launch across the island’s six communities. It will feature a range of entertainment, dining, recreational, and educational facilities, and will bring the best of enhanced waterfront living to its residents, said its developer Jubail Island Investment Company (JIIC).

Of the island’s amenities, commercial areas will include over 18,000sqm of office space across four buildings, as well as over 8,000sqm of floor space for retail outlets. Furthermore, four community centres will be available within walking distance to serve the island’s residents, workers and visitors.

Managed by LEAD Real Estate Developer, Jubail Island will house a collection of six residential village estates between Yas Island and Saadiyat Island. The low density, low-impact destination is located in the heart of Abu Dhabi’s mangrove forest, with broad vistas of surrounding nature offering a holistic residential experience.

Jubail Island Community Management (JICM) will oversee and support ongoing activities throughout the lifestyle destination, using state-of-the-art software solutions to drive resident engagement, streamline operations and provide unparalleled convenience.

With a commitment to environmental management and sustainability, as well as a dedication to community engagement and high-quality service, JICM aims to enrich residents’ experiences by creating a vibrant community that exists and operates in harmony with nature.

The management team’s decision-making will impact all of Jubail Island, ensuring a holistic approach to lifestyle standards across the several residential communities.

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A franchise agreement for a second Vignette Collection hotel in Dubai has been signed by IHG Hotels & Resorts (IHG). The deal is in partnership with The Heart of Europe, the flagship project of the Kleindienst Group. According to a statement, the Marbella Resort Hotel, Vignette Collection The World Islands Dubai is scheduled to open in January 2026 and will be a significant milestone for The Heart of Europe, whilst simultaneously solidifying IHG’s presence within The World Islands.

According to a statement, the Vignette Collection brand allows owners of world-class independent hotels to retain their distinctive identity, while benefitting from IHG’s global scale and luxury and lifestyle expertise.

The Marbella Resort Hotel, Vignette Collection The World Islands Dubai, is taking shape in The Heart of Europe, which is billed as a self-sustaining holiday destination spanning across six islands, each blending European architectural charm with top-tier hospitality, embracing luxury and innovation on shores of tranquil beaches.

“We are excited to partner with The Heart of Europe to bring the second Vignette Collection resort to Dubai, a testament to IHG’s commitment to delivering exceptional stays and experiences for our guests. Marbella Resort Hotel, Vignette Collection The World Islands Dubai will significantly reimagine luxury and set future regional hospitality benchmarks. We look forward to welcoming travellers worldwide upon the hotel’s opening in 2026,” said Haitham Mattar, Managing Director – India, Middle East and Africa, IHG Hotels & Resorts.

Once completed, Marbella Resort Hotel, Vignette Collection The World Islands Dubai will feature 150 rooms overlooking the Arabian Gulf. In line with the Vignette Collection brand, the property will seamlessly merge exclusivity with community and locality, and feature a unique Andalusian-inspired design with contemporary architecture.

With the property currently under construction, Marbella Resort Hotel, Vignette Collection The World Islands Dubai is expected to become a key proof point in IHG’s ambition to create unparalleled guest experiences and set new standards for luxury in the region, the firm stated.

Josef Kleindienst, Founder and Chairman of Kleindienst Group and The Heart of Europe added, “It is an honour to partner with one of the world’s leading hotel groups to bring the Vignette Collection brand to The World Islands Dubai. This collaboration aligns with our vision of creating a unique destination in one of the world’s most iconic cities, and true to our commitment to excellence, Marbella Resort Hotel, Vignette Collection The World Islands Dubai promises to offer guests a remarkable and distinctive stay, drawing inspiration from the rich cultural heritage of Dubai and presenting a perfect blend of luxury, innovation, and the beauty of the UAE.”

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The advisory for a syndicated ten-year loan of US $195.78mn for Orascom Development Egypt’s (ODE) subsidiary Orascom for Real Estate (ORE) has been successfully completed by EFG Hermes’ investment banking division. EFG Hermes served as the sole financial advisor, lead manager, and bookrunner for ORE; the loan will finance ORE’s Cairo – O West project.

According to a report, the transaction marks an important milestone in the development cycle of the O West project, and is a testament to its strong financial profile. The loan will support ORE’s plan to accelerate the pace of construction and continue the delivery programme, which started earlier this year. $49mn will be directed to refinance the bridge facility obtained last year for the project.

The transaction follows EFG Hermes’ successfully closing numerous sizeable debt transactions over the last year in general and in the real estate sector in particular.

“This transaction serves as a testament to the enduring partnership forged between EFG Hermes and ODE, marked by a series of successful advisory assignments over the past few years, including the $49mn facility agreement conducted last year and ODE’s $265 million multi-currency syndicated debt. The transaction also demonstrates EFG Hermes’ ability to secure highly competitive funding packages from a distinguished group of lenders despite challenging market conditions to fund leading projects,” said Maged El Ayouti, Managing Director and Deputy Head of Investment Banking at EFG Hermes.

Despite prevailing market conditions and a high-interest rate environment, the debt market remains open for leading corporates who can raise capital at competitive terms. EFG Hermes has also successfully concluded debt advisory transactions with leading developers in Egypt, namely TMG, as well as Palm Hills Developments, Orascom Development Egypt, Madinet Masr (previously Madinet Nasr for Housing and Development), Marakez, SODIC, and Misr Italia Properties, amongst others, the firm noted.

The bank noted this is in addition to debt financing transactions concluded with leading mortgage providers, including the Egyptian Mortgage Finance Company (EMRC), Bedaya Mortgage Finance, and Al Taamir Mortgage Finance.

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Source: ME Construction News

A new US $100mn loan agreement has been signed by the Saudi Fund for Development (SFD) in support of a potable water development programme in the Córdoba province of Argentina. With this new funding, Argentina has become the 93rd beneficiary of SFD, thus signifying its commitment to sustainable development in Latin America.

According to a report, the funds will help develop the Interprovincial Aqueduct Santa Fe – Córdoba Project (Phase 1, Block B-C) in Argentina. The agreement will also boost Argentina’s economy by supporting potable water development in Santa Fe and Córdoba, creating jobs, and advancing socio-economic development.

The project will also enable the realisation of the UN SDGs, specifically SDG 3, Good Health and Wellbeing, and SDG 6, Clean Water and Sanitation, the report stated.

The agreement was signed by SFD Chief Executive Officer Sultan Al Marshad along with the Province Governor of Córdoba Juan Schiaretti and the Province Governor of Santa Fe Omar Perotti, at the SFD headquarters in Riyadh, Saudi Arabia.

Schiaretti explained, “It is a great honour to sign this $100mn aqueduct agreement, benefiting Santa Fe and Córdoba, and forging the first economic development corporation between the SFD and Argentina.”

Under Phase 1 of the project, the development activities will take place from Coronda to San Francisco, providing more than 410,000 people with access to safe water and fostering development in Santa Fe and Córdoba.

Perotti pointed out that the SFD collaboration will change lives for the better, thus marking a historic step towards long-lasting development.

Al Marshad added, “Safe water, sanitation, and hygiene are essential for health and well-being. We are proud to support projects that improve access to potable water in developing countries and positively impact the lives of many.”

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Source: ME Construction News