Al Mazaya sees minimum default in JLT project

Al Mazaya Holding, a real estate development company, has commenced handover of two towers in its Business Avenue project in Jumeirah Lakes Towers (JLT) and expects default rates to be minimal, a company executive told Emirates 24/7.

“Majority of our customers have already paid 80 per cent. Besides, the units were sold at a very decent price and so we don’t expect them to default,” said Khaldoun Abdul Kader, Executive Vice-President - Dubai Office Operations, Al Mazaya.

Business Avenue consists of three 45-storey towers, which are linked to a four-storey commercial centre with retail spaces.

“The two buildings, which have been sold completely, are being hand over. We still hold a lot of units in the third tower, which we plan to lease.”

Kader said the company is looking at the option of converting some floors in the third tower, where it owns a number of floors, to serviced offices.
 
“Companies are looking for a smaller office space. We have certainly studies the market and it does look good. We will start with one floor and test the market.” Naif Al Awadi, CEO of Al Mazaya's Dubai Operations, said, “We have reduced sale and lease costs in order to offer attractive options that reflect the market's current situation, as well as the project's strategic location at JLT, the availability of appropriate infrastructure among other aspects.”
 
Al Mazaya has appointed a special services company to manage services at Business Avenue, as well as a building director to represent owners, define work and internal rules and obtain approvals from official bodies where necessary.

Company Chairman Rashid Yaqoob Al Nafisi said early April that the past year had been challenging in most regional market especially Dubai where it was taking back properties where investors had defaulted. The company reported a loss of Dh112.5 million in 2010 after booking provisions totaling Dh181.8 million.

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