Dubai sees US$200m cash boost

DUBAI-BASED Capital Partners has announced what is believed to be the largest single foreign direct investment into Dubai, a US$200 million injection of private equity for the company’s River Walk development at Dubai Internet City.

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By  Colin Foreman Published  July 24, 2005

Dubai sees US$200m cash boost DUBAI-BASED Capital Partners has announced what is believed to be the largest single foreign direct investment into Dubai, a US$200 million injection of private equity for the company’s River Walk development at Dubai Internet City. According to Jonathan Wride, managing director of Capital Partners: “The investment is from institutions and high net worth individuals from the US, and is the largest single foreign direct investment into Dubai.” The move may be an indicator of things to come as the US wakes up to the investment potential in Dubai. “I am a big believer in ice breakers,” says Wride. “And I believe this investment will set a precedent for foreign direct investment into Dubai.” To date almost all investment in Dubai has been from within the region, and with the UAE still to sign a free trade agreement with the US, the potential for more foreign direct investment is massive. Located on a 156,720-square-metre plot behind the EPPCO Station on Sheikh Zayed Road, Capital Partners’ River Walk development aims to leverage of its location in Dubai Internet City and create a development based on the concept of urbanism and will be completely pedestrian at ground level. Aiming to appeal to up and coming business professionals the development will offer affordable freehold property, a business hotel, together with waterfront boutiques, galleries and coffee shops. Construction work on the development has already begun with Al Habtoor Engineering working on the enabling works for phase one; a residential tower with 600 to 700 units and a built-up area of 130,000 square metres. Prequalification for the main contract is already complete and a contract award is expected within the next 90 days. Construction of phase two will start later this year and when complete will offer 220,000 square metres of built-up space. The construction of this phase will involve extensive infrastructure works, including the excavation for the projects main water feature that will create a man-made island in the centre of the development. This island will be home to some of the retail units, coffee shops, art galleries and a business hotel managed by an international chain. Work on phase three is expected to start early next year and will include work on the commercial component of the development, and the remainder of the residential and retail space. This phase will be the smallest of the three and will offer 150,000 square metres of built-up space. The construction period for each phase is two years, and the developer expects that all phases will reach completion within six months of one another. Dar Consult is the consultant overseeing the construction of the project.

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