10 sub-developers working on Shams Abu Dhabi

Shams Abu Dhabi, a development on Al Reem Island, is expected to be home for 45,000 residents (SUPPLIED)

Published Wednesday, November 02, 2011

By Parag Deulgaonkar

Ten sub-developers have started work on their projects in Shams Abu Dhabi, while some international projects of Sorouh Real Estate are in in their master planning stage, 'Emirates24|7' can reveal.

“We had been working closely with sub-developers to help get them started, which is now evident in the work already underway on Shams Abu Dhabi. Currently, there are 10 sub-developers who have started their projects, and so far they are more focused on residential rather than commercial,” said Gurjit Singh, Chief Operating Officer, Sorouh Real Estate.

Shams Abu Dhabi, a development on Al Reem Island, is expected to be home for 45,000 residents, according to the company website.

Asked about the progress on its Egypt and Morocco project, he said: “We do have undeveloped land in Egypt and Morocco which are in very desirable locations and consequently very valuable, as well as other international projects which are in master planning phase. Construction will launch at the appropriate time.”

The company through its subsidiary, Egypt International, is building a Sorouh City, a 500-hectare mixed-use development in New Cairo. It has already invested in Morocco through Al Ma’abar International Company, a joint venture between Abu Dhabi-based real estate companies.

According to the senior company executive, year 2011 has been the year of handovers with the company continuing to focus on delivery next year. “To date, more than 550 families (more than 1,000 people) have moved into their units in Sun and Sky Towers and are making use of the available amenities. This represents 70 per cent of all the units for handover.” Sorouh, Abu Dhabi's second-largest developer by market value, expects to hand over all units in the project by early next year.

Asked about the response to its “rent-to-own” scheme in the Sun Tower, Singh said they have received very a positive feed back from their customers so far.

“Of the 90 lease deals Sorouh has signed in Sun Tower since it announced the scheme in June, about half have been rent-to-own deals.”

Although the company is planning to extend the rent to own scheme to its other projects, it did not disclose which projects would come under the scheme. “We develop quality projects and we believe that demand will continue to increase; however, it will also be at the discretion of our customers as to whether or not they choose to exercise their option to purchase.”

Rent to own is designed to give our customers total flexibility without penalizing them, Singh added. Even though there has been increase in mortgage buyers compared to cash buyers in Abu Dhabi, Sorouh believes there is need to ease mortgage lending norms. “There has been an increase in mortgage buyers, but there is definitely more of a need for people to find ways to finance their housing. We are committed to finding innovative ways to help our customers and along with major UAE developers keen to see more competitive mortgages. This could meet the demand of potential home buyers and help stimulate the real estate market,” Singh said.

On Monday, Sorouh said net profit rose 13.4-percent rise in third-quarter to Dh67.3 million compared with Dh59.3 million in the same quarter last year aided by higher handovers and increased rental income.

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