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GERMAN PROPERTY DEVELOPER ACI REAL ESTATE TO PURCHASE DEFINE PROPERTIES

Wednesday, 14 Jan 2009

The German builder that is constructing several projects on property in Dubai for celebrities is currently in negotiations to purchase the local real estate development company, Define Properties. In June 2008, Define Properties was launched, mere months before the international financial crisis became a problem for the Dubai property market. After buying twelve plots of real estate in Nakheel’s Waterfront project, the firm committed to spending $2.1bn to build a selection of commercial and residential projects.

A Define spokeswoman said, “We have entered negotiations for the sale of Define Properties with ACI.” She added that the negotiations were focused on the sale of the Dubai property at the Waterfront and some other Define assets. Define’s director of sales and marketing, Walid Abdel Latif, attested to the veracity of this, and remarked that the sale’s finalisation would take place within one month. Another Define spokesperson stated that ‘talks were ongoing’.

Define Properties was the developer that delivered a commercial development project that Niki Lauda, the former Formula 1 racing driver, endorsed in the Business Bay accommodations in Dubai. ACI has now taken over the Twin Towers project for Niki Lauda, however, because Define Properties could not find sufficient funding for the construction. The contract has since been given to Saqer Engineering and Contracting Enterprises, which is scheduled to begin construction any day now.

The firm’s managing director, Mahmoud Younis, said, “We’ve already mobilised to the site and are waiting for the local authorities to finalise the permit. ACI is the client now, Define is out.” The Define spokeswoman remarked that future employment of the firm’s staff was a crucial point of the negotiations for the sale of Define. This deal is another sign of the ongoing trend that seems set to consolidate the Dubai property sector, which is destined to be an important feature in 2009 as developers battle to stay afloat in these hard times.