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Manazel Real Estate
to Postpone Projects

ABU DHABI - Abu Dhabi’s third largest property developer, Manazel Real Estate, is postponing and reconsidering its new projects until the nation’s depressing property market recovers, said its chairman Mohammed Muhanna Al Qubaisi.

In Abu Dhabi, the property development scene is dominated by government-owned companies like Aldar Properties, Sorouh, Manazel and Tourism Development Investment Corporation (TDIC). Tourism Development Investment Company (TDIC), a subsidiary of Abu Dhabi Tourism Authority (ADTA) has also hinted intentions to delay the development of projects which are in planning stage.

Largely the real estate sector is far from instability. The two big developers, who have a major share in $160 billion worth of developments currently under construction in the emirate, have neither delayed or postponed any of their ongoing projects nor have laid off any of their employees.

“In view of the current developments and challenges arising out of the global financial crisis, the company is adopting a risk-management plan to cope up with the existing circumstances,” said Al Qubaisi in a statement.

The strategy includes postponement and reconsideration of new projects until the market responds positively in 2009. Once the dust has settled, the fate of the projects will be decided taking into account their economic viability and market conditions after rescheduling due payments for some of the current projects.

Al Qubaisi said his company is focusing on the completion and delivery of existing residential and commercial projects according to their time-frame to avoid any delays. The company is also closely working with contractors in order to avoid costs overruns.

Manazel Real Estate, which has a paid up capital of Dh2.5 billion and has plan to launch an IPO this year, was affected only slightly by the financial meltdown due to its well-thought out and economically sound projects. The projects have got massive response with 80 per cent of the sales registered, which would help bolster steady cash flows, he noted.

Al Qubaisi said that the falling inflation and construction material prices would be taken due advantage of by offering more competitive prices for future projects. This would help in offering better prices, said Al Qubaisi.

· haseebhaider@khaleejtimes.com