Emaar joins initiative on stalled projects

The total number of companies joining Dubai Land Department’s (DLD) Tanmia initiative touched 13 with the latest entrant being Emaar Properties, a publicly-listed company. Under the agreement, the DLD will propose investment opportunities to Emaar, which would in turn will review the projects and take proper decisions in accordance with its strategy. The Tanmia programme, launched in September 2011, aims at revitalising the real estate market by focusing on the incomplete projects under all categories. Emirates 24/7 reported in April that ICD-Brookfield, a $1-billion Dubai-based real estate fund, had joined the initiative. It was Wasl Asset Management Group, a subsidiary of Dubai Real Estate Corporation, which was first to join the initiative. The DLD has already appointed a number of audit firms to undertake technical and financial audits on number of stalled projects. In the planned Dubai sovereign bond prospectus, DLD said that a total of 291 projects were on hold in Dubai as of March 31, 2012 – but each of these registered projects were likely to qualify for either the Tanmia or Tayseer initiative, the DLD stated in the planned sovereign bond prospectus. In July 2010, the land department had launched Tayseer initiative, which aimed at facilitating financing for purchasers in certain pre-qualified projects. To date, only two projects have been financed under this scheme. Majida Ali Rashid, Manager-Real Estate Investment Management & promotion Center, said in a statement: “The agreement will strengthen mutual cooperation links between both parties as part of the Tanmia, which is an investment development program that seeks to provide unique investment opportunities and helps Emaar take informed decisions by providing a proper investment environment and by saving time, effort and money.” Ahmad Al Matrooshi, Managing Director, Emaar Properties, added: “Tanmia is an investment development program that seeks to create comprehensive investment opportunities and offer excellent services to new investors. Through the agreement, Emaar will co-operate to help make informed decisions on real estate investment, leveraging the excellent investment environment in Dubai facilitated through the initiatives of the department.” In October 2011, Sultan bin Butti bin Mijren, DLD Director-General, said that the Tanmia will cover 100 projects in 2012 and the initiative will be continued for the next three to four years. Emirates 24/7 reported earlier that Santevill, a Dh400 million 25-storey tower in Business Bay, was to be the first recipient of funding under Tanmia, but no official statement has yet been released.