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Dubai Properties launches Dh40b 'Mudon' project

DUBAI — Government-owned Dubai Properties yesterday announced the launch of a Dh40 billion ($10.9 billion) mixed-use development in Dubailand.

Called Mudon, it is the company's largest master development so far and will cover 73 million square feet. Dubai Properties' next biggest project is Business Bay covering 64 million square feet, said CEO Mohamed Binbrek, speaking at the project's launch.

Mudon, meaning 'cities' in Arabic, will incorporate five historic cities — Baghdad, Beirut, Damascus, Cairo, and Marrakech — within one large city. The architecture of each of the cities will resemble its real-life counterpart, providing 50,000 residents with an authentic living experience and a modern and luxurious lifestyle, said Haiyan Murjarkech, chief officer for business development and project owner.

All the five cities within Mudon will be a separate community developed around a signature golf course. Each will feature a distinct town plan including designated downtown areas. There will be 3,200 villas and town houses and 8,500 apartment units. There will be traditional townhouses with shared, landscaped courtyards, stand alone villas featuring three, four, five and six bedrooms and high end 'signature' villas and apartments overlooking the fairways, he explained. The downtown section of each city will also include residential buildings, retail shopping, restaurants and hotels, In total, there will be five community centres, 10 hotels, 64 mixed-used buildings and four sub-stations, Murjarkech said.

These include supermarkets, clinics, launderettes, and various other shared services located between the individual cities.

The project is being developed in phases over a period of five years. Work on the site has been going on for the past year and the earthworks have been completed. The first phase, which includes the show homes and sales centre, is due for completion by 2009 and work on the second phase has already started. Downtown Cairo will be completed in the second phase followed by Downtown Damascus, Downtown Marrakech, Downtown Beirut and Downtown Baghdad.

The company is also in negotiations with contractors and "will announce shortly all those that have been awarded," he said.

Binbreck commented that he was "very bullish" about the real estate market and believed that it had an "upside."

Next year would see the announcement of another mega project, he added.

"Dubai Properties will also continue to be self-financing," he continued, "we do not seek outside funding and this will continue to be the case."

He also rejected any possibility of an initial public offering (IPO) in the near future.

"Dubai Properties does not intend to IPO at this stage. We can categorically say 'no' within the next three to five years."

With a current portfolio of Dh350 billion, Binbeck said that the company's portfolio is still "too small" and that it aimed to grow the portfolio to above Dh500 billion.