UAE's Al Fajer Properties eyes Indian realty via JV

New Delhi, May 2 2007: Al Fajer Properties, one of the leading realty developers from Dubai, today announced its India investment strategy which will include developing world-class realty projects in India through a joint venture and creating a real estate fund to facilitate investments by small investors in Dubai properties.

The announcement follows its successful participation in the recently concluded Asian Real Estate Show in New Delhi. "We are convinced that there is ample opportunity for us to support healthy cross-border investments between the two countries both by developing projects in India through a joint venture, as well as by facilitating Indian small investors buy into high-yielding Dubai properties," Dr. Shahram Abdullah Zadeh, Chief Executive Officer of Al Fajer Properties.

He said Al Fajer Properties will enter the Indian realty market with an outlook to develop three types of projects including commercial, gated residential community and townships.

Dr. Shahram said the Al Fajer is in talks with two leading real estate developers in India and the joint venture will be finalised soon.

"We have been monitoring the Indian real estate and investment scenario for over two years now. Despite the current price fluctuations in the real estate and property prices, our decision to enter this growth market is driven by our confidence in the strong economic fundamentals of India," he said.

"We have looked at several locations - Gurgaon, Hyderabad, Gujarat, Mumbai and Chandigarh - for investments up to US$1 billion through a joint venture. We will be entering the Indian market once the joint venture deal is finalised with the right project at the right time," he added.

The decision of Al Fajer Properties to enter India also closely follows the recent state visit of His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President, Prime Minister of the United Arab Emirates and Ruler of Dubai to strengthen bilateral relations and explore ways to increase two-way investment flows between the two countries.

"The opening up of the India real estate sector has fuelled significant interest among overseas realty players and we are keen to be part of this dynamic scenario," Dr. Shahram said.

Al Fajer Properties currently has a portfolio of over US$1.5 billion worth of projects in Dubai with its Jumeirah Business Centre Towers "� the region's first five-star freehold office chain in the heart of Dubai's new business and residential district. It is also looking at expanding into hospitality and residential sectors soon.

Jumeirah Business Centre was showcased at the Asian Real estate show in New Delhi where Al Fajer Properties had the largest stand among exhibitors. The project attracted substantial interest from Indians, including a sizeable number of small investors, who are keen to invest in Dubai properties. The five sold out Jumeirah Business Centre Towers have a built-up area of 3.1 million sq. ft and offers flexible office units ranging from 800 sq. ft to 11,000 sq. ft.

"We were surprised to receive thousands of inquiries from small investors from India keen to invest in our Dubai projects as it offers an attractive proposition to maximise returns with projected rental yield in excess of 20 per cent per annum,. In fact, our decision to create an Indian small investor-focused Al Fajer real estate fund is in direct response to this demand scenario," Dr Shahram Abdullah Zadeh added.

He said small investors were attracted to Jumeirah Business Centre because of the reputation of Dubai as a growth-oriented economy and a safe investment destination. "Additionally, our one of a kind proactive mortgage scheme under which investors need to pay only 30 per cent of the asset value during construction and 10 percent on completion guarantees minimal investment with maximal return on completion," Dr. Shahram explained.

Under the developer guaranteed Al Fajer-ADCB mortgage scheme, the rest 60 per cent of asset value can be paid over 10 years after the investor moves into the property. "We have gone the extra mile to ensure hassle-free acquisition in our property by giving the necessary guarantees to Abu Dhabi Commercial Bank on behalf of the investors. In addition to the attractive mortgage scheme, the Jumeirah Business Centre tower is being built in a free zone allowing 100 per cent repatriation of profits. In fact the unique free zone and freehold combination, allows 100 per cent ownership of the property as well as the company, which is why an office in Jumeirah Business Centre Towers is the most sought after property," he added.

About al Fajer Properties

Al Fajer Properties LLC is a subsidiary of Al Fajer Enterprises - established in the year 1965, by its Group President His Highness Sheikh Hasher Bin Maktoum Al Maktoum. Al Fajer Enterprises has rapidly grown to a diversified business entity delivering high quality service to its wide range of clients. With more than 12,000 employees, the Group's business interests over the past 40 years include a leading construction company, property maintenance and management services, engineering and consultancy, international fairs and exhibitions, manufacturing, travel & tourism, pharmaceuticals, general trading and investments & development. For more information, please visit: www.alfajerproperties.com