Ajman One project on track for 2011 completion

The initial phase of the development has completed 30% of Phase One which is the residential component of the project, and handover of the units to investors will take place in the first quarter of 2011.

Ten of the 12 residential towers of the Dhs2.7bn ($720m) mixed-use development have already been completely sold out. Comprising 72,000 square metres, the complex consists of residential, business and hotel facilities.

"We aimed from the beginning to build a long-term strategy, based on three key elements: professionalism, by partnering with reputable contractors; sustainability, by developing self-funded projects; and pro-activity, by offering a unique and flexible payment scheme which can meet our clients' needs under any circumstances. Despite the current tough situation, our investors, who are mostly end-users, can look forward to receiving their keys without any hassles. This strongly demonstrates our forward-thinking values and strategic plans are well in place,"

said Rami Dabbas, CEO of Aqaar.

As a fact, Aqaar is one of the first developers to register with Ajman Real Estate Regulatory Agency (ARRA). It is also one of the first developers to sign an agreement with the Abu Dhabi Commercial Bank for a major financial package to assure construction of the Dhs2.7bn project. Under the terms of the deal, Abu Dhabi Commercial Bank has provided a fixed term loan of Dhs600m.

With full commitment from its investors, Ajman One has zero defaults in payments and is one of the few developers who did not face any serious investors' problems.

"Our clients are our key assets and we value a long, fruitful relationship with them. This can be achieved only by working closely with them, listening to them and openly communicating ideas that can help those who faced difficulty in paying. Aqaar has offered different flexible solutions based on the clients' specific individual needs," Mr. Dabbas explained.

He stressed that the market witnessed confusion due to costs of developments. "Most of the investors are wondering why the developers are not re-considering their prices with the current reduction in price of construction materials. The fact is that the developers are unable to pass on the cost saving to end-users, even if they want to, because the contractors have been fully paid at market prices applicable during the time the companies have signed the contracts," Mr. Dabbas concluded.

Two years ago, Aqaar developed a competitive finance scheme which has provided affordable access into the UAE's freehold property market. The six year scheme initially required investors to pay only 30% of the total property value before the project's completion through one pre-completion payment. This was followed by small monthly installments and a final payment upon completion. Once the project is handed over the remaining 70% of the value is paid in fixed monthly installments over a three year period.

Ajman's One Phase One targets the mid-range segment and prices are highly competitive. The 3,000 apartments will have the highest quality finishing throughout including large fully equipped bathrooms and balconies.

Infrastructure work on Phase 2 of the project has also been completed. This comprises three office towers, a convention centre, and a world-class four-star business hotel with serviced apartments.