Property News · April 19, 2017

Mall to be centrepiece of Zayed Sports City project


Mubadala Real Estate will look to begin talks with mall operators and investors interested in bringing forward a new 316,918-square-metre mall next to the 43,000-capacity Zayed Sports City stadium by the end of this year. The mall will form the centrepiece of the revamped Arzanah development unveiled by Mubadala Real Estate at Cityscape Abu Dhabi on Tuesday. It will comprise more than 1.9 million sq metres of built-up space around the existing football and tennis stadiums that will eventually be home to more than 30,000 people.Ali Eid AlMheiri, the executive director of Mubadala Real Estate, explained that the master plan that was unveiled was a “concept of how we believe the site could be developed in the future”, but is based around promoting an active lifestyle for families. Residential buildings, for instance, could feature rooftop tennis courts and pools and there will be football pitches spread across the site. Mubadala Real Estate will be the site’s master developer and will service the plots, which it then plans to offer to third-party developers. The new mall will be the first element to be brought forward. “Once the concept is approved by all of the authorities then we will be marketing the plot to well-known mall operators/investors – the usual players in the UAE. We’ll get into discussions with them, see who’s interested in buying it and on the best commercial terms,” said Mr AlMheiri.”We’re probably looking at some time towards the year- end. After that, once you reach the commercial agreement with them, then the clock ticks.”He said that potential investors and developers would largely decide on what went in the new mall (where a connected hotel is also proposed), but added that it is expecting the mall operator will incorporate an ice rink and bowling alley to replace existing facilities on site that will make way for the Arzanah project.The bulk of the remaining site will be made up of residential plots, although there is space for a couple of office buildings. However, Mr AlMheiri said that Mubadala was conscious of current market conditions and would not “flood the market” with new plots.”We will be servicing the plots and selling to third parties to do those developments. And the third party will not come to do the plot unless the market is there to develop. So we are both aligned.”He argued that there would be more interest in the mall, however, despite several major new mall projects now under way in Abu Dhabi, because most of these are on the eastern side of the island, while this is on the west.According to JLL, retail rents remained stable within the first quarter of 2017 at Dh3,000 per sq metre for well-located malls on Abu Dhabi island and Dh1,860 per sq metre for off-island malls, but operators have been increasing tenant incentives to try to retain retailers in a market suffering from lower levels of spending.David Dudley, the head of JLL’s Abu Dhabi office, said: “Retail spending declined during Q1 given the reduction in population growth, disposable incomes and corporate hospitality as well as increased caution among consumers.”mfahy@thenational.aeFollow The National’s Business section on Twitter

Source : thenational.ae
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