Global Viewpoints

CDL China Real Estate Opportunity Fund (CDLF) Sponsors REIW Asia 2009 Conference, Announces Road Show

Edited: Jennifer Brenner Andrade
Source: CDL China Real Estate Opportunity Fund L.P.

Dr. William Yip, managing director of the CDL China Real Estate Opportunity Fund L.P. (CDLF), announced CDLF’s sponsorship of the Real Estate Investment World Asia (REIW) 2009 conference and its June road show.

“The global economic downturn and numerous fundamentals have set the stage for one of the most lucrative investment opportunities in the history of Chinese real estate,” said Dr. Yip, chairman of Canada Land Limited and a published author and international businessman known in academic and business circles as an authority. “Capitalizing on the current correction in Chinese real estate requires extensive market analysis, due diligence, focus on quality over quantity, an investment strategy that’s weighted toward multi-family, multi-tier residential developments, and an ability to leverage strong relationships with Chinese government authorities and the local real estate community.

“Based on CDL’s success in Chinese real estate and our alliances with other highly esteemed experts worldwide, our team is exceptionally well-positioned to leverage the emerging opportunities in Chinese real estate.”

REIW takes place June 23-24 at the Raffles City Convention Center in Singapore. There, Dr. Yip will participate in a panel discussion titled, “Country Chronicles: Exploring Direct and Distressed Real Estate Investment Opportunities.” CDLF’s road show for potential investors, which kicks off June 22-25 in Singapore, includes Hong Kong (June 26-29) and Shanghai (June 30-July 2).

CDLF invests in distressed Chinese real estate and other real estate opportunities in Greater China. The Fund, with a $1 billion target size, leverages a seasoned group of more than 400 professionals in Greater China and global real estate and finance partners.

Dubai: Al Fajer Properties Releases Progress Report

Edited: Jennifer Brenner Andrade
Source: Al Fajer Properties

Al Fajer Properties recently released further details of the RERA-approved third party construction audit.

The report shows that Phase I of its Jumeirah Business Centre projects has neared 80 per cent completion and 15 per cent has been completed on Phase 2, which includes Ebony and Ivory Towers.

His Highness Sheikh Maktoum bin Hasher Al Maktoum, President of Al Fajer Properties said: “We are proud to publish the results of this audit. We have set ourselves a high performance bar for our projects and from our management. In releasing this information we are delighted to share our performance and achievements with our partners and customers.”

Being the first developer to release the construction audit results to the public, Al Fajer Properties has again achieved a first in the real estate sector where it is the first company in the UAE to publish an independent construction. This will surely be a precedent for other strong developers in the country to follow which will ultimately lead to the highest levels of transparency leading to increased confidence in the real estate sector.

Al Fajer’s progress on the construction front follows an aggressive managerial restructuring of the company which it initiated last year to turnaround the company with prudent practices. The restructuring also included financial streamlining that resulted in a strengthening of the balance sheet by AED 3.2 Billion. The restructuring involved removal of inefficiencies and strengthening of the company’s operational capabilities culminating in a four day construction cycle per floor and the building of Phase 1 in record time. Phase 1 is due for hand over in the last quarter of this year.

AFP is also the first developer in Dubai to use the Oqood system in its entirety indicating high level of compliance to prudential norms set by the authorities.

Earlier, His Highness Sheikh Maktoum bin Hasher Al Maktoum, President of Al Fajer Properties, had said that only those companies “with a strong focus on management and performance as their core competencies will be able to excel in the current market conditions. I am confident that we will continue to deliver measurable results through our performance and dedication.“

Foreign Investors: US Real Estate to Recover in Q2, 2010

Edited: Jennifer Brenner Andrade
Source: Association of Foreign Investors in Real Estate (AFIRE)

Foreign real estate investors say they expect to see a recovery in the U.S. real estate market by the end of the second quarter of 2010, according to the results of a new survey released today by the Association of Foreign Investors in Real Estate (AFIRE). Completed in the past month among the association's nearly 200 members, the survey was conducted by The James A. Graaskamp Center for Real Estate, University of Wisconsin - Madison. This is the first mid-year survey to be conducted by AFIRE.

Respondents projected their investments for the remainder of 2009 will substantially out-strip investments completed year-to-date. On the debt side, survey respondents say they expect to invest three times more than current investment levels year-to-date; equity investors expect they will place seven times more than current year-to-date investments. Overall, three quarters of the survey respondents had not yet invested in 2009; however, more than two-thirds of them plan to invest some debt or equity in U.S. real estate before the end of the year.

Survey respondents continue to be optimistic in their investment projections. Thirty-one percent said they were more optimistic than at the beginning of the year; 16 percent said they were more pessimistic; and 53 percent said they felt about the same as at the beginning of the year.

In the 17th Annual Survey, released in January, respondents named Washington, D.C., New York, and San Francisco respectively as the top three cities for their investment dollars. "In this survey, respondents echoed those choices saying they expected the same three cities to lead the recovery," said James A. Fetgatter, chief executive of AFIRE. "However," he added, "The perception that Washington, D.C. will be the first to recover has risen dramatically since the Annual Survey. Twice as many respondents named Washington as their city of choice over second-place New York." Boston, which has not appeared among investors' top five cities since 2001, was selected as the fourth city and Los Angeles, fifth.

Survey respondents also said that the office sector would recover first, followed by the multi-family and industrial sectors. This is a shift in investor perception from the results of 17th Annual Survey in which investors expressed an interest for multi-family over office buildings as the preferred property type for their real estate investment dollars.

AFIRE members have a common interest in preserving and promoting investment in cross-border real estate. Founded in 1988, AFIRE has nearly 200 members representing 20 countries.

MGM MIRAGE and New Giza for Real Estate Development Announce Agreement to Include MGM Grand Resort at Development Outside Cairo

Edited: Jennifer Brenner Andrade
Source: MGM MIRAGE

MGM MIRAGE and New Giza for Real Estate Development - an Egyptian company building a luxury, mixed-use community near the base of the famous pyramids - today announced plans to develop the MGM Grand New Giza. All equity funding for the development will be provided by New Giza for Real Estate Development. MGM MIRAGE will provide management services and brand fees through MGM MIRAGE Hospitality.

Conveniently located 40 minutes from the airport on the outskirts of Cairo, the 550-room MGM Grand will provide spectacular views of the city of Cairo and the famous pyramids of Giza. It will be connected via electric train to the new and highly anticipated Egyptian antiquities museum, currently under construction.

"The New Giza community presents an opportunity for us to be part of an extraordinary new master-planned development near Egypt's famed pyramids," said Gamal Aziz, President and CEO of MGM MIRAGE Hospitality. "Our partners share our focus on luxury, excellence, customer-oriented design and unparalleled service. Together with this spectacular location, this new resort will quickly become a tourism and conference destination that is both in high demand and fully reflective of the MGM Grand brand."

The New Giza development marks a new beginning for luxurious, master-planned communities in Egypt. Built over 1,500 acres of land, it will incorporate elegant homes, three resort hotels, lavish restaurants, shopping malls, all-inclusive sporting facilities and a high-end golf course designed by Thomson Perrett & Lobb. Built on graded elevations, approximately eighty percent of the 2,500 villas and townhomes will enjoy all-around views of Cairo and the Pyramids of Giza. Developed as nine individual neighborhoods, the community will be surrounded by endless greenery, parks and lakes.

"We are delighted to have the MGM Grand anchor our hotel and hospitality sector in New Giza," said Mahmoud El Gammal, CEO of New Giza for Real Estate Development. "MGM's reputation for quality living, dining, entertainment, spa and nightlife offerings will provide the amenities, excitement and energy that reflect the lifestyle of this unique development."

MGM Grand New Giza is currently under design, and the resort is anticipated to open in 2013.

Real Estate Industry Veterans Join Forces To Form Unique Asset Management Alliance

Edited: Jennifer Brenner Andrade
Source: Real Estate Fiduciary Services (REFS)

Real Estate Fiduciary Services (REFS) has formed a special Asset Management Alliance in response to the growing number of real estate investors, lenders and owners with financially distressed and underperforming assets. Led by REFS President John Baczewski and comprising eight senior-level real estate practitioners from diverse backgrounds and cities, the alliance provides comprehensive services designed to protect and preserve real estate investment value in today's ever-challenging marketplace.

"This alliance is unique in both the breadth and depth of the asset management expertise it offers," said Baczewski. "It joins together seasoned real estate veterans whose experience covers all disciplines of the profession - across all capital structures, product types and markets - and through multiple industry cycles. Combined with our strong business connections, we can provide cost-effective workout solutions to any financial or operational challenge a client's portfolio may face."

In addition to Baczewski and REFS principal Francis Decker, the alliance includes: Bruce Fernald and Mark Briggs, principals of Black Diamond Capital Advisors, an Atlanta firm that provides capital sourcing and advisory services for commercial real estate clients; David Lester, president of Lester & Associates, an Atlanta marketing-communications firm specializing in real estate; Debra Williams and Ned Williams, principals of Vector Real Estate Advisors, an asset management and consulting firm based in Virginia Beach, Va.; and Hunter Richardson, CEO of Richardson Development Group, a real estate development and project management company in Reston, Va.

Baczewski added that the alliance's services are available on an episodic or ongoing basis. "We can focus on a specific project, augmenting the client's internal staff," he explained, "or we can act as the in-house real estate team, managing the client's entire portfolio. And because of our interdisciplinary skills-set, we can address portfolio and asset issues super efficiently. This not only helps clients to better manage overhead and staffing costs, it also saves them time - which is critical in a period of declining property operating fundamentals and capital availability."

Based in Boston and founded in 2005, REFS provides individual and institutional investors with independent and co-fiduciary services encompassing the development, implementation and monitoring of real estate investment strategies aligned with overall asset allocation and investment objectives.