Emirates Business 24-7, 31 July 2010

Rakeen, the real estate development arm of the Ras Al Khaimah Government, is not in the race for Dh2.2 billion ($600 million) Lombok project, a senior government has confirmed.

"I am not aware of any such proposal in Indonesia. Our focus is only on development of Ras Al Khaimah," said Dr Khater Massad, CEO, Rakeen, told Emirates 24/7.

Indonesia's investment chief Gita Wirjawan told Reuters yesterday that Indonesia has shortlisted four firms -- a unit of Indian Hotels, Qatari Diar, Rakeen, and an unnamed Abu Dhabi firm -- for a $600 million resort project in Lombok.

On July 28, however, Ray pulungan, Aide to the Chairman, Indonesia Investment Coordinating Board (BKpM), told this website, in an e-mailed statement that Emaar properties continues to express interest in the Dh2.2 billion ($600 million) Lombok project and the "seriousness of its interest is being assessed."

The Lombok project will have more than 17km of natural waterfront with a marina, luxury residences and resorts by five-star hospitality chains.

Rakeen had earlier told this website that it has no plans to seek government funding to complete its projects.

"We do not need any funding from the government to complete our projects... we are managing our cash flows well," Wahid Attalla, Board Member, Rakeen, told Emirates 24|7 in a telephone interview.
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"Infrastructure work is progressing on the Al Marjan Island, while structural and block works of the Bab Al Bahr project are competed with external plasterwork having started."
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Upon completion, Bab Al Bahr will comprise 328 studio apartments, 420 one-bedroom apartments, 172 two-bedroom apartments and 72 three-bedroom apartments.
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According to Attalla, the master developer is not forcing any investor in RAK Financial City and Gateway City project to commence work.
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"The projects have been put on hold and not cancelled... we are not pressing or compelling investors to start work on their towers considering the current market conditions."
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RAK Financial City is a 750,000 square metre project and will include towers ranging from 30 to 65 floors.
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The towers will be home to offices, residential apartments, hotels, commercial areas and related services and will BRing the concept of themed free trade zones to Ras Al Khaimah.
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Gateway City will cover 4.8 square kilometres and is intended to attract major investment in several business sectors including industry and tourism.
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Attalla said the company has been working with investors of their projects and have been offering flexible payment plans.
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"We understand the market realities and so we are not after investors to pay up. We haven't given them any discounts but have assisted them in consolidation and flexible payment options."
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Although all investors from Dana Island have been moved to Al Marjan, the master developer has not cancelled the project.
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"It has not been cancelled and we may launch the project if and when the market revive."
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Attalla said that the master developer has no plans to launch any projects in the overseas market and is quite busy working and completing projects in Georgia, Lebanon and India.
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"We are now putting a lot of efforts in research, and venturing into overseas market where it makes more sense," Attalla added.
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In October 2009, Attalla said the company had put the Kyrgyzstan project on hold.

By parag Deulgaonkar

© Emirates Business 24/7 2010