Dubai South is not just selling plots

Dubai South Apartments for Sale - DWC

The master-developer Dubai South is playing the perfect host. It is not only providing land to build the sprawling logistics and warehousing facilities for future tenant needs but also helping get third-party investors to put in the funds to build these assets.

The build-to-suit facility “is perfect for those operators who do not want to have the properties (and the associated costs) listed on their books,” said Tahnoon Saif, Vice-President of Aviation at Dubai South within the 145 square kilometre Dubai South.

Dubai South was formerly Dubai World Central and home to the world’s largest airport, Al Maktoum International).

“These things, especially investment on hangar facilities for aircraft maintenance, can run into the hundreds of millions of dirhams.

“Our role then is to connect potential tenants with the right partners and the funds to build on their behalf.” (One such facility belongs to the Swedish do-it-yourself furniture and home accessories retailer IKEA, and located in the Logistics District.)

The Aviation District — which was formally launched in 2013 — alone takes up 6.7 square kilometres. As of now, 30 per cent of the District’s land has been developed and the rest should be ready by 2019 ‘with the completion of an aircraft maintenance ecosystem, which forms Phase 2,”, Saif added.

There is no scope for any residential component within Aviation District. Such offerings will come within its own cluster, the Residential District. This is where ‘The Villages’ are going to be, easily one of the most anticipated projects in Dubai’s realty space now. The Villages will create multiple communities and with the stated aim of being an affordable location for its residents. In time, it is to emerge as the bedrock of the mini-city forming around Dubai South.

While eschewing residential, Aviation District will, however, have a hospitality component sighted strategically by the airside facilities. “We have two phases related to hospitality with a total of five hotels planned across the Aviation District,” said Saif. “Phase 1 has been sold out and will launch Phase 2 in Q3 of 2016.

“We are currently allocating the land parcels for hotels very close to (future) Air Shows. The five hotels between them will have 2,000 keys.

“On the airside, we will soon be launching aircraft hangar facilities, terminals for private and VIP jet operations. And also breaking ground on a paint shop for aircraft. The scope is huge — We are creating elements that form a powerful ecosystem for aviation and aerospace.”

Content courtesy: GulfNews

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