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Dubai Festival City to be financed largely by banks
- December 9, 2005, 8:45 am
Banks will finance nearly 60 per cent of the Dh40 billion needed to develop Dubai Festival City, which is under development, said a senior company official.
“The rest 40 per cent would be financed by Al Futtaim Group’s own resources,” Marwan Shehadeh, managing director of Al Futtaim Capital told Gulf News on Tuesday.
Al Futtaim Group, the developer of the project, is also studying the possibility of establishing an urban rail network that would be connected to Dubai Metro rail network.
Dubai Festival City (DFC) is expected to generate about Dh3.6 billion in annual revenue.
“The annual return on investment has been calculated at around 9 per cent of the total investment, once completed,” he said.
“About 30 per cent of the DFC will be completed by 2007 while the entire project will be ready by 2012.”
The project includes an 18-hole golf course, two schools, a residential community, a large shopping arcade, office blocks, retail district and five hotels with 2,500 rooms.
“We are currently finalising deals with two operators for two hotels, one of which will be offered on a time-share basis,” he said. “We are waiting for the UAE’s timeshare law to be implemented so that we can go ahead. It is likely to be managed by the leading timeshare operator in the world.”
DFC has already signed up InterContinental Group of Hotels to manage two of the large hotels one under InterContinental and the second under Crowne Plaza brands. A third hotel will be managed by Toronto-based Four Seasons Hotels and Resorts.
“When completed, it will house 75,000 residents and will be a complete community,” he said. “All components of the projects are offered on a lease and rental basis.”
Al Futtaim Group last month opened the region’s largest Ikea store at the DFC, to be followed by a new hypermarket.
Dubai Municipality is building a major bridge and road network over the DFC to ease traffic congestion.
Workers are currently laying pipe-lines for irrigation that stretches 40 kilometres while 17 kilometres of road network is also under construction.
Once completed. DFC will have 70 million square feet of gross built-up area.
About 9.5 million cubic metres of earth has already been used for the project. At its peak, about 15,000 workers are engaged at the site.
Source - Gulf News
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