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Deyaar Development, Dubai's second largest developer by market value, swung to a small profit in 2011, it said in a statement to the Dubai bourse on Sunday.     

Deyaar made a net profit of Dh37.7 million ($10.3 million) last year, compared to a net loss of Dh2.87 billion ($0.78 billion) in 2010.     

The company also posted improved fourth-quarter results, according to Reuters calculations, but remained in a loss.     

Deyaar made a Dh7.3 million ($1.99 million) net loss in the fourth quarter of 2011, according to Reuters calculations, compared with a net loss of Dh1.77 billion ($0.48 billion) during prior-year period.     

The developer's results for both periods in 2010 were hit by large writedowns.         

Chief executive Saeed Al Qatami attributed the full-year profit to the company's 'strong core operations despite challenging market conditions.'     

'The company will continue with its focus on completing the projects in the pipeline, growing the existing sources of sustainable income and exploring new business opportunities,' Al Qatami said.       

Deyaar's shares are 6.1 per cent up since the beginning of the year. – Reuters

The performance of residential mortgage-backed securities (RMBS) markets in Europe, the Middle East and Africa (EMEA) showed deteriorating trends in most countries in the second half of 2011, according to a new report by Moodys.

The two largest prime RMBS markets, the Netherlands and UK, followed a moderately stable trend over the last year, remaining the best performing in EMEA region, said the Moody's Investors Service in its latest indices report.

German and French RMBS markets deteriorated slightly, while the Italian, Spanish and South African RMBS markets remained relatively stable, it said.

The performance of the Irish and Greek RMBS markets continued to deteriorate over the past year, it added.

In the 12-month period leading up to September 2011, most EMEA markets recorded a decrease in their outstanding pool balance.

According to Moodys, the Greek RMBS market recorded the most significant outstanding pool balance fall, with a 26.05 per cent drop to Euro3.6 billion.

Dutch RMBS and Portuguese RMBS markets were the only ones that recorded an increase in their outstanding pool balance in September 2011, with a rise of 11.76 per cent to Euro274,60 billion and 20.03 per cent to Euro22.51 billion, respectively.

On a country-by-country basis, Moodys said its 2012 outlook for collateral performance in RMBS transactions in Greece, Ireland, Italy, Portugal and Spain was negative.

Rising unemployment and falling disposable incomes resulting from slowing economic growth (and outright recession in some of these countries) will weigh on households' ability to service their debts,' the ratings agency stated.-TradeArabia News Service

The total value of real estate sales in Kuwait hit KD2.7 billion ($9.7 billion) in 2011, up 35 per cent compared to the previous year, thus signaling a recovery in the sector, said a report.

The National Bank of Kuwait, in its latest GCC Brief said the country's real estate sector recovered further in 2011, with special sustained interest in the 'investment' sector ie. apartment buildings that generate income.

The NBK report pointed out that the investment sector topped the list registering a 53 per cent growth.

Investors, policy makers, and analysts expect that infrastructure spending (and indirect effects) will pick up once the new public-private companies are formed and start business in earnest, it added.-TradeArabia News Service

Union Properties, Dubai's struggling real estate developer, on Thursday said its full-year net loss widened as property values continue to drop in the emirate.

The company, which recently transferred a major portion of its assets to a local bank, said 2011 net loss widened to 1.57 billion dirhams ($426.90 million) from 1.53 billion dirhams a year-ago.

Union Properties made a fourth-quarter net loss of 68 million dirhams, compared with 779 million dirhams loss a year-ago, according to Reuters calculations based on nine-month earnings. The company recorded a loss of 1.5 billion dirhams in the nine-month period ending in September.

Revenue for the full year increased to 4.9 billion dirhams compared with 2.9 billion dirhams in the same period in 2010, the company said in a statement to the Dubai bourse. Fourth quarter figures were not provided.

Like many real estate firms in Dubai, Union Properties has been hit by the slump in the emirate's property sector which has seen prices fall by more than half and large numbers of projects cancelled or put on hold. 

The developer reached a 3.8 billion dirhams debt deal earlier this month with major shareholder Emirates NBD, where the company would transfer assets worth 1.1 billion dirhams to the bank.

Union Properties' third-quarter net loss more than doubled as it booked additional provisions amid a sharp drop in asset valuations.

In June, the company said it would repay 2 billion dirhams in 2011 and was in the process of renegotiating terms on its other obligations to extend the tenor. - Reuters

A nearly four-year decline in house prices in the UAE won't end this year, as oversupply and concerns over the health of global economy weigh on the market, according to a Reuters poll.

Growth in the second largest Arab economy is expected to slow this year to 3.1 per cent. That will not help Dubai's property prices to recover after plunging by two-thirds from their 2008 peak.

The poll of 11 respondents, including banks, investment firms and research institutions showed house prices in Dubai's beaten-down real estate sector will slip by a median 5 per cent in 2012.

Prices in the emirate, which is home to the world's tallest tower, the Burj Khalifa, will ultimately ease another 8 per cent from here, a median of nine respondents showed.

Global markets were rattled in 2009 when Dubai announced a $25 billion debt restructuring of conglomerate Dubai World , bringing its historic building spree to a halt.

Neighbouring Abu Dhabi, which was resilient during Dubai's property market collapse but is now showing signs of pressure, will see housing prices fall by as much as 11 per cent this year.

'Macro-economic concerns compounded with an ongoing supply-demand mismatch will further delay the recovery of the UAE property market,' said Patrick Rahal, manager at Doha-based investment company The First Investor.

Four respondents said Dubai's property prices will stabilise during the year, while three said they would not do so until 2013 or beyond. Others thought prices had already reached bottom.

Expectations that Dubai property will continue to fall in value come as homes prices in the US, where a spectacular collapse in the housing sector triggered the 2008-09 financial crisis, may finally be stabilising.

A Reuters poll of US home prices found a consensus for no change in the S&P/Case-Shiller home price index in 2012.

Economic growth in the UAE is expected to slow to 3.1 per cent next year from 3.9 per cent in 2011, in line with most of the other Gulf oil exporters, weighed down by a global slump.

Real estate and construction accounts for nearly 22 per cent of the country's GDP.

Dubai's aggressive building drive has resulted in oversupply, with thousands of new residential and commercial units set to enter the Dubai real estate market.

Dubai's property market is oversupplied by 30 per cent, a median of seven respondents showed. Abu Dhabi is oversupplied by 20 per cent.

'The key message is that despite some recent stability, we still have a good chunk of supply coming in 2012 and as long as new jobs are not created to absorb the new supply, we are not likely to see any recovery,' said Athmane Benzerroug, analyst at Deutsche Bank.

Rental prices in Dubai and Abu Dhabi will also see a downward trend, dropping 5 per cent and 10 per cent respectively.

Abu Dhabi, the capital city of the UAE, fared better during the downturn but is now facing challenges as a huge supply of high-end homes are expected to come onto the market.

Across the oil-rich state, which accounts for more than half of the UAE's economy, government-backed real estate, commercial and tourism projects, many conceived during the boom years of 2003-2008, are under review and in some cases being delayed or put on hold.

Abu Dhabi pushed back the opening of the much talked about local branches of Louvre and Guggenheim art museums earlier this month.

'In Abu Dhabi, the prices and rentals are expected to be under downward pressure due to increasing supply of housing units in the capital at a time where there (is) less demand,' said Sajeer Babu, analyst at National Bank of Abu Dhabi.

A median of 10 respondents in the poll said Abu Dhabi's house prices will fall 61 per cent from its peak in 2008 and 14 per cent from here.

Four out of 10 respondents expected Abu Dhabi's house prices to fall by 15 per cent and above in 2012. -Reuters

Dubai’s Real Estate Regulatory Authority (Rera) has approved the 2012 service charge budget for Oceana residential and resort community on The Palm Jumeirah, according to leading property management group Asteco.

The news comes as issues concerning the transparency and breakdown of service charges across the emirate’s property market continue to fuel debate amongst owners and developers, said the company.

Oceana is a mixed use beachfront hotel, commercial and residential resort community with 644 residences, centrally located on the trunk of The Palm.

To ensure that owners across the different asset classes of the community are being treated with parity, Asteco had retendered all building services, which included detailed negotiations with the relevant sub-contracted companies, in order to present a mutually acceptable budget figure of Dh17.50 per sq ft.

Compared to the previous figure there is a 30 per cent reduction and the budget figure is in line with similar developments on the Palm Jumeirah, said a senior official.

“This is not the first complex in the city to receive approval, but as a mixed-use resort community with multiple facets, naturally we are pleased to conclude this issue with the full cooperation and involvement of the Interim Owners Association Board,”  explained John Stevens, director of Asteco.

“In order to reach the final budget figure we had to detail the expenses for all of the buildings within the development, calculate the applicable fees for the communal areas and also the proportion of services utilised by the hotel and commercial elements, compared to the residential units,” he added.

Stevens said, “Asteco’s commitment to supporting transparency across the emirate’s real estate sector, particularly in the high profile area of service charges, saw us engage with Oceana’s developer, the Interim Owners Association and building management group through each stage of this comprehensive exercise.”

“The meticulous Asteco budgetary process is in line with the stringent requirements and spirit of the jointly owned property law, and is a model that we apply throughout our property portfolio,” he added.-TradeArabia News Service

Al Hamra Real Estate, a leading developer in Ras Al Khaimah, has maintained a positive outlook in 2012 for its Al Hamra Village project, which, the company said, enjoys 84 per cent occupancy.

The Al Hamra Village is a luxury integrated community which is uniquely located in Ras Al Khaimah in the UAE, approximately 45 minutes from Dubai.

The master planned development covers an area of 7.1 million sq ft and includes 1.5 km of pristine beaches, 1,089 villas and townhouses, 2,444 residential apartments, 5 resort hotels, an 18 hole golf course, clubhouse, a marina and a shopping mall all within a fully integrated community.

Apart from the residential comforts, Al Hamra Village also provides attractions such as the Al Hamra Fort Hotel & Beach Resort, Banyan Tree beach Resort, Al Hamra Palace Hotel & Resort, Al Hamra Golf Club, Al Hamra Marina & Royal Yacht Club, Al Hamra Mall as well as several restaurants.

Al Hamra said the coming year is set to see more new developments with the completion of the Waldorf Astoria Hotel at Al Hamra Palace and the expansion at Al Hamra Mall.

The company said it aims to complete and handover the phase three of its Al Hamra Village, which includes The Royal Breeze Residences.

The Royal Breeze Residence is a prestigious shoreline property comprising five residential towers with stunning views of the turquoise waters of the Arabian Gulf and lush greens of Al Hamra Golf Club.

It offers beach, gym and pool access to its residents and provides well appointed homes including studios, one, two and three bedroom apartments as well as stunning penthouses with breathtaking views, said the developer.

Over 81 per cent of the apartments at The Royal Breeze Residence have been sold and customers have started taking possession of their homes, it added.

Benoy Kurien, general manager of Al Hamra Real Estate said, 'From the outset we have strived towards delivering a quality product and creating a premier lifestyle community. Royal Breeze is the latest addition to Al Hamra Village.'

'It is an ideal destination for families as well as investors looking for a unique community experience in the Northern Emirates,' he added.-TradeArabia News Service

Abu Dhabi has held talks to offload all or part of a 49 percent government stake in struggling Aldar Properties in an attempt to stop its falling asset value from dragging down state investment fund Mubadala, a report said.    

According to two sources familiar with the discussions, the talks have been held at the highest levels of government for the last few months. They centre on identifying an existing buyer or setting up a new holding group that could take up the stake.    

The sources would not say whether the talks were still ongoing or had stalled, but they said recent discussions revolved around shifting the Aldar stake to an Abu Dhabi-based bank through a swap deal.     

Mubadala, which made a loss in 2010 and in the first 2011, would provide an equity bridge loan to the bank for taking up the assets, said one of the sources, both of whom spoke on condition of anonymity.     

A spokesman at Mubadala, which has stakes in General Electric and private equity firm Carlyle, denied that such discussions had taken place.     

The Abu Dhabi government has given Aldar nearly $10 billion in bailout funds, almost equivalent to the amount it extended to neighbouring emirate Dubai at the height of its 2009 debt crisis.     

While Dubai's crisis came as a shock to global markets, the Abu Dhabi reckoning has been a more gradual and incremental process as real estate values continue to slide in the emirate.     

Mubadala, with assets worth around $46 billion, also played a key role in Aldar's bailout by subscribing to a $2.8 billion bond issued by the developer last March.     

Separating Aldar away from Mubadala would improve the state fund's ability to tap capital markets, but finding a place to put Aldar has not been easy.     

'Until now, there has been a lot of pushback from other entities to take up the stake,' said an Abu Dhabi-based source familiar with negotiations, adding that Aldar was an entity that 'no one wants to parent'.      

The Aldar stake is held in Mubadala's real estate & hospitality arm which manages assets worth Dh12.36 billion ($3.4 billion) spanning 17,000 sq m, according its 2010 annual report. Latest figures were unavailable.     

Mubadala converted a portion of its Aldar bonds to equity in December, taking its stake to 49 percent. Full conversion could eventually raise Mubadala's stake to 60 percent.     

The investment fund also helped Abu Dhabi-based district cooling firm Tabreed seal a restructuring deal with creditors last year.          

Across the oil-rich state, which accounts for more than half of the UAE economy, government-backed real estate, commercial and tourism projects, many conceived during the boom years of 2003-2008, are under review and in some cases being delayed or put on hold.     

Although it fared better than neighbouring emirate Dubai which saw a collapse in its property market and the restructuring of its flagship firm Dubai World, Abu Dhabi is facing challenges now as a huge supply of high-end homes are expected to enter the market.          

Property prices in Abu Dhabi are expected to fall another 14 percent from here, or 60 percent from their peak, a Reuters poll showed.      

Late in 2010, Mubadala put on hold planned construction of a stadium in Abu Dhabi with capacity for some 50,000 people, citing 'proprietary decisions of the government'.     

Mubadala reported a sharp drop in its total comprehensive loss in the first half of 2011, thanks to higher commodity prices and increased contributions from its semiconductor business. – Reuters

Real estate consultancy Cluttons has announced the appointment of two new executives, Tom Carter and Bushra Abdulaziz, to its property management team in Bahrain.

This team expansion underlines Cluttons’ strength in the property management marketplace as it moves into its 35th year of operation in Bahrain, and will allow it to successfully lead the market.

Presently, Cluttons has some 30 buildings under management including the Al Nakheel Tower and Almoayyed Tower, both in the Seef district.

“Tom Carter has recently joined us as property manager from Century 21 Bahrain,” head of country for Cluttons in Bahrain Harry Goodson Wickes said.

“He will be looking after commercial properties across the kingdom under our management, in addition to Bushra Abdulaziz, a highly trained property manager who will look after the landmark Bahrain Chamber of Commerce and Industry building.

“Both have several years of experience in the local Bahraini real estate market as well as a record of excellent customer service, he said.

“Their experience will help bolster our property management team and maintain the highest standard of excellence for which Cluttons is known,” he added.-TradeArabia News Service

Dubai Industrial City (DI), a leading manufacturing area and a member of Tecom Investments, has launched the second phase of its warehouse and showroom development worth $204.21 million.

The new phase, which will offer state-of-the-art storage facilities, comprises 3.5 million sq ft of warehouses and retail showrooms equipped with back storage, featuring units measuring 5,000 and 10,000 sq ft.

These new facilities double the present size of the current storage facilities, and along with an additional three million sq ft of open storage yards that are equipped with asphalted tarmacs and round-the-clock security, bring the aggregate amount of current storage at the light to medium industrial destination to 10 million sq ft – the largest-of-its-kind under one area in the UAE.

Dubai Industrial City now features a total of 627 eight-meter high warehouses, and 122 retail showrooms with amenities for temperature-controlled and chemical storage, workshops for light industrial activities and machinery operation, in addition to warehouses for general-use.

Abdulla Belhoul, managing director, Dubai Industrial City, said: “There is an increasing demand for quality and specialized storage facilities in the market, with a heightened emphasis on health and safety.”

“The launch of the second phase of warehouses at Dubai Industrial City addresses such needs, and will further consolidate Dubai’s position as the current logistics hub in the UAE and the Middle East. It will also spur growth in the nation’s industrial sector, which has grown by approximately 11 per cent in 2011, making it the second largest contributor to the UAE’s economy after the hydrocarbon sector,” he added.

Belhoul continued: “The warehouses are engineered to respond to the sophisticated industrial and safety needs of the diverse light and medium industrial units operating at Dubai Industrial City such as food and beverage, machinery and equipment, as well as base metals and chemicals.”

“The units are subjected to periodic monitoring and supervision by Dubai Industrial City’s Health, Safety and Environment Department to ensure full compliance,” he concluded. – TradeArabia News Service