Omniyat to deliver Dh1.9bn worth of projects this year

Omniyat Properties has put its overseas expansion plan on hold because of the global economic crisis and is focusing on completing and delivering projects on time, a top executive has revealed.

"We will focus on our existing portfolio and deliver in excess of Dh1.9 billion worth of portfolio in 2009," Executive Chairman Mehdi Amjad told Emirates Business in an exclusive interview.

In November 2008 the company – the real estate arm of Omniyat Holdings – framed a strategy to deliver its eight projects over the next three years, starting with the handover of One Business Bay and Bayswater in Business Bay and The Square in Deira in 2009.

It will then deliver Pad and Binary in 2010, Gemini by the first quarter of 2011 and Octavian and the Opus towards the end of 2011.

"Our portfolio remains intact in terms of delivery," said Amjad. "The strategy concentrates on delivery, construction and creating a 'lean and mean' organisational structure that has a clear and defined focus. We have a unique portfolio and believe our projects valuations are quite strong, and we are well-funded."

Omniyat has sold more than 85 per cent of its property portfolio, Amjad said.

"We have already sold more than 85 per cent of the projects and over 50 per cent of it [payments from buyers] has been collected. This has given us a solid platform to focus on delivery and construction."

The Dubai-based developer has put expansion plans on hold for the time being.

"We have a development in Bahrain and are looking at a few developments outside in consultation with our partners. It is a matter of timing and we do not see 2009 as the right time. We will look at global expansion in 2010 and beyond. Today the entire world is consolidating and so we to had to change our strategy from growth to consolidation."

One result of this is that CEO Peter Walichnowski will be stepping down from his position from June 1, with Amjad taking over.

"I invited him to join the organisation prior to the world economic tsunami as we had a big growth plan. Now we have revised our horizons and timelines for expansion on a global level and hence we need a more hands-on style of leadership that focuses on delivery and execution. That is the rationale behind the move."

Omniyat has offered many customers construction-linked payment plans for its project under construction.

"We are working with our customers to see how we can offer them easier payment plans by linking instalments to construction milestones. We are staging the construction to suit our customers' cash flow."

Asked if the company had enough funds to complete the existing portfolio, Amjad said: "These projects are well funded in terms of construction, but the timing matters. We are well mapped in terms of financing these projects through collection from our customers. In fact over 50 per cent has been collected, which gives us confidence in our customers' commitment.

"Today we can finish all our projects under construction in line with our contracted sales. We do not need any new sales to finish these projects. I think we have managed a phenomenal achievement over the last four years and we as a start-up have managed to build a strong portfolio and unique partnerships within Dubai. Today as a brand we are recognised in the market."

He said his vision for the company remained intact, adding: "We aim to be a global player in the real estate development and investment industry. It is just a matter of time – if not in 2009, then in 2010 and if not then, by 2011. As far as I am concerned this is an intact vision with a long-term objective."

Amjad believes challenging times are good for companies. "Such times are good for organisations because they make them. Challenging times are the best times to build great companies because you look at every aspect to create a much stronger company. I think it is a good challenge to have."


Recruiting for Asset Management division

An asset management arm is an important element in real estate development as it enhances the long-term sustainability of a developer, according to Amjad.

The company is recruiting for its new division, which was set up in the past six months.

"The asset management division was one of the key strategic diversification factors for us and was introduced to support our brand and customers," he said. "Besides it creates a diversified revenue-generation source for us."

Amjad said the division would cover the entire cost of Omniyat Properties' operations by 2010. "We are hiring in our asset management unit. It is a very important part of the business. If you look at all international companies, asset management is always an important part that sees good development companies through non-development times."

The company has signed partnership agreements with CB Richard Ellis Middle East and Jones Lang LaSalle for leasing its One Business Bay and Bayswater projects in Business Bay.


Projects due for delivery in 2009 

- One Business Bay: The company's maiden project is a freehold commercial tower at Business Bay. The 30-storey tower expands from an area of 11,090 sqft on the first floor to an expanse of 18,148 sqft on the top floor, while three of its upper floors extend out of the building.

- Bayswater: The second project to be launched by Omniyat is a scissor-shaped 25-storey commercial tower that will rise on a waterfront location in the Business Bay district.

The commercial tower will offer 24 floors of grade A freehold offices.

- The Square: The project is an integrated real estate compound with residential, commercial and retail components and is being built in Mamzar area of Deira. The residential component is a freehold complex consisting of seven low buildings surrounded by 6,000 sqm of gardens and water features. The buildings are named Ayka (bushy tree), Tala (small palm), Dalia (Vine) and Sendian (oak) after the foliage in the park.

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