First Tayseer funded project in Dubai completed

The Lakeside Residence in Jumeirah Lake Towers - the only project that was publicly announced to have got funding under the Tayseer initiative has been finally completed and is ready for handover.

The Dh300-million project, developed by Al Manal Development, had got approval for a Dh65-million funding under the Dubai Land Department’s (DLD) guaranteed-funding scheme from Mashreq in March 2011.

The 35-storey tower, comprises 358 one- and two-bedroom units, four levels of basement parking, and retail on the ground floor.

“The bank was more comfortable to provide funding for the project under the Tayseer,” Juma Ahmed Majid Al Ghurair, Managing Director, Al Manal Development, told Emirates 24/7 when asked how important it was for them to get funding under Tayseer.

However, it was not the only alternative that the company was working on. He disclosed: “If we hadn’t got funding under Tayseer, we would have explored other venues as we wanted to complete their project.”

But how did the company manage to retain 80 per cent of its buyers all through the turbulent times when projects got stalled and investors refused to fulfill their contractual commitments.

Al Ghurair said: “We managed to retain buyers as our selling price was competitive and as our payment plans too were very attractive.”

Al Manal has retained 20 per cent of the inventory in the tower, which it plans to lease and not sell.

In his view about the Dubai property market, Al Ghurair said: “The real estate market is on the way to recovery, with established quality communities showing increase in values.

“Good quality property in good locations in Dubai is helping the emirate’s real estate market get back on its feet. The market is seeing strong interest from buyers in good quality real estate, well positioned and well-designed properties.”

Tayseer, a guaranteed funding initiative, was launched in June 2010, and initially covered 40 projects across Business Bay, Dubai Marina and Jumeirah Lake Towers, but was extended to 114 projects over time.

Majida Ali Rashed, Senior Counsel Strategy, DLD, had told this website: “Tayseer is a sophisticated formula for funding which links banks on one hand and real estate projects with high guarantees and feasibility on the other. The programme is designed to move the real estate sector towards a new development stage through support and offering financial facilities on the basis of specific criteria.”

For projects to be selected and accredited with Tayseer, they should be registered at the land department; the project should not be less than 60 per cent complete; a trustee account should be in place and the project should have a solid infrastructure and competent contractor to deliver on time.

In April 2012, the DLD said in the planned sovereign bond prospectus, that a total of 291 projects were on hold as of March 31, 2012, but they were likely to see the light of day as all qualified for either the Tayseer or the Tanmia initiative.

The Real Estate Regulatory Agency, in the same prospectus, had revealed that 165 projects have been completed since the beginning of 2009; 291 projects were on hold ; 291 projects were likely to be completed in due course, while 29 projects have not yet commenced.

The Tanmia initiative was launched in September 2011, aims at revitalising the real estate market by focusing on the incomplete projects under all categories. Over 100 projects are listed under the scheme.

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