A property developer from Pune, India, has become the first company to officially acquire two projects under Dubai’s Tanmia initiative, 'Emirates24|7' can reveal.
Parvez Khan, Chairman, Pacific Ventures, in an exclusive interview with this website, said the company plans to spend Dh50 million over a two-year period to take over projects listed under Tanmia scheme.
The two acquired projects are in Jumeirah Village Triangle and have been renamed Pacific Residencia and Pacific Edmonton Elm.
In addition, the developer is close to acquiring one project each in Business Bay and Dubai Sports City under the DLD’s initiative.
Tanmia, launched in September 2011, is aimed at getting semi-government/private investors on board to get projects completed with the Dubai Land Department currently auditing over 100 projects.
Talking about the acquisition, Khan said: “It took them four months to complete purchase of the two projects.
“We are happy with the way Rera helped and assisted us. We have given them our assurance of completion, while they have assured us to assistance on all legal issues.”
Work has commenced on Pacific Edmonton Elm with 20 per cent of the project now being completed, while work is in progress at Pacific Residencia as well.
According to Khan, 85 per cent of the 50 per cent of the “old” investors in Edmonton Elm have decided to continue with the project and agreed to pay as per the new payment plan.
“The remaining 15 per cent are defaulters… we will seek cancellation of their contracts through proper legal channel.”
Pacific Residencia is 40 per cent sold and majority of the investors have agreed to continue with the project.
Price rise soon
Asked about his view on the Dubai property market, Khan believes the market is “underpriced” and price appreciation is bound to happen.
“In the next four to five months prices will move up by 10 to 15 per cent over today’s rate,” he added.
In April, Kuwait-based Global Investment House (GIH) said that property prices in Dubai appear to have bottomed out in the first quarter of 2012 and are starting to firm up despite the existing oversupply.
Villa and apartment prices saw minor increases in the first quarter after stabilising in the second half of last year.
However, the developer’s primary concern is local banks refraining from offering finance for off-plan units.
“We want banks to finance off-plan properties. Even 70 per cent is good enough, but that too is hard to find.
“I am certain the market here will rebound much earlier if end-user finance for off-plan becomes available,” he stated.