Celebrities bring stardom to Dubai towers

It was headline news when rumours broke that Hollywood stars Angelina Jolie and Brad Pitt had bought Ethiopia in The World man-made island development off the coast of Dubai.

Later it was claimed this was a PR stunt as sources close to the two stars revealed the news wasn't true, but no matter to the developers - superstardom had brought attention to its ambitious islands.

State-owned Nakheel, the firm behind The World, declined to comment on the matter, stating that the issue was 'highly confidential'. When AME Info probed for names of other stars or celebrities that had bought World islands it declined to divulge any, saying they were confidential - unless the celebrities themselves chose to reveal their identity of course.

However, there is no doubt that in the recent years Dubai has drawn heavily on the power of star names, attracting celebrities not only to buy property but also to design golf courses and borrow their name for towers.

Now names like former formula one champions Michael Schmacher and Nikki Lauder, and golf stars such as Tiger Woods, Ernie Els and Gary Player are synonymous with property in Dubai.

Star branding

Malcolm Thorpe, Marketing Director for Sports Business, Dubai Sports City believes that 'branding' projects with star names is not enough to attract the public. 'People know the difference between a good golf course and a bad one, and just having a star's name associated with a project doesn't mean the development is good,' he said.

The 18-hole Ernie Els course in Dubai's Sport City was opened to the public in January. 'And so far we have been getting a very positive response from the public,' said Thorpe. Currently a golf club is being developed that will carry Els's name.

'Ernie is a highly ranked and still active golf player and so far he has been very pleased with the results he's seen…so his name is not merely a badge on the wall but the course itself adds value to golf players,' he added.

Yet there is little doubt that having a celebrity name associated with a development project has a direct impact on the level of profits made. 'Just having the Tiger Woods signature on any golf course adds value and profits not only to the course but to all the property surrounding it,' said St John Kelliher, Director of Business Development for Dubai Golf, which is responsible for the Dubai Creek Golf & Emirates Golf Club projects.

The Tiger Woods Dubai is being developed by Tatweer, a member of Dubai Holding. The course is designed by Woods himself and runs across a 55 million square foot area in Dubailand, the region's largest tourism, leisure, entertainment and lifestyle destination.

According to Tatweer, the course will be open by September 2009 and will include 197 residences. Despite several attempts made by AME Info no one from Tatweer was available to comment, citing that the project is 'very exclusive'. 'The prices of property are 100 per cent influenced by the Tiger Woods name,' added Kelliher.

Palm Jumeirah

Even though the connection between having a star name associated with a project and the amount of profits made might seem obvious, determining the extent of its effectiveness might be a little bit tricky.

'It's difficult to say whether celebrities can have a direct effect on the value of properties, but what we have seen is a dramatic increase in the value of homes on The Palm Jumeirah over the last year as we move from concept to reality and more and more families move into their homes where they can experience the lifestyle to be had on the island,' said Manal Shaheen, Director of Sales, Marketing & Customer Services at Nakheel.

Even though Pitt and Joile did not buy Ethiopia, Shaheen confessed that Nakheel has been giving tours to celebrities that are interested in exploring the man-made islands. 'We often host celebrities at the Nakheel sales centre who are keen to see what we are creating with their own eyes, but I'm afraid I couldn't possibly divulge any names,' she said.

Nakheel hopes the Palm Jumeirah island will become one of the world's premier resorts. It offers villas, apartments and beachfront townhouses; residents can choose from the 2,000 villas and 2,500 apartments in a variety of styles and surroundings.

'The Palm Jumeirah was always going to attract worldwide attention due to its sheer innovation and concept; however, having David Beckham and 12 other members of the England World Cup squad own villas on the Palm Jumeirah has certainly drawn press attention in the UK and raised further awareness of the development. The same goes in India for Bollywood star Shah Rukh Khan, who owns one of our signature villas on the island,' said Shaheen.

During the 2002 World Cup it was rumoured that Beckham, Michael Owen and nine other members of the England squad had received hefty discounts, but the subsequent hype helped Palm Jumeirah to sell out, with more than a quarter of properties going to British buyers.

Michael Schumacher

Alternative Capital Invest (ACI), a UAE based real estate developer, has also recognised the power that celebrities have on the value of property and has been branding its projects with legendary sport champions, including Boris Becker, Michael Schumacher and Nikki Lauder.

'We have chosen to work with celebrity icons, not merely celebrities. Icons reflect an uncommon commitment to excellence that takes them to the top of the game and keeps them there. They set high goals and consistently achieve them,' said an ACI spokesman.

ACI's projects include Michael Schumacher Business Avenue, which comprises 29 storeys and provides you with prestigious office space in Dubai's prime Business Bay area, The Boris Becker Tower and the Nikki Lauder twin skyscrapers.

'We have seven towers coming up in various parts of the UAE, including Dubai and Abu Dhabi. At this stage it's a little too soon to reveal more.' said the spokesman to AME Info.

Speaking about the tower carrying his name, Schumacher told AME Info: 'We had the idea some years ago and finally we found the right position and time to develop and construct it. Dubai is one of the fastest growing places in the world and you have to look where the demand is. ACI did a study and it's the right place to start.'

Yet sustaining the success of these projects is another issue that developers have to factor into their calculations, as the emirate is soon to be oversaturated with celebrity names on towers that perhaps might eventually lose their lustre. But for the time being most developers are confident that this is far from happening.

'The key to maintaining success is to deliver a product that is of value to people,' said Dubai Sport city's Thorpe. And in the meantime Dubai is a star on its own.

'Dubai as a city is herself a celebrity that attracts headlines wherever she appears,' said the ACI spokesman.