Construction work on the much-delayed Yas Mall project in Abu Dhabi is imminent, according to developers Aldar Properties.

An artist's impression of Yas Mall, Abu Dhabi

The builder said in its May Progress Update posted on its website that it is set to award the construction contract in June.

“Since January, construction contract bids have been received, with a contract award scheduled for mid-June 2011,” the developer said.

But the size of Abu Dhabi’s new shopping mall has been further reduced, according to the report.

The gross leasable retail space in Yas Mall is given as 230,000 sq m in the May Progress Update posted on the website of the Abu Dhabi builder.

The original plan for the shopping centre included retail space of 300,000 sq m. That was cut to 250,000 sq m last year and then in March, it was reduced again to 235,000 sq m.

The latest size reduction will see less than 500 shops occupying the shopping mall, compared to the 700-plus announced in the original plan.

The report said the mall would house “over 400 stores, including hypermarket, restaurants, food court, multiplex cinema and family entertainment centre”.

The shopping mall project, which was launched in late 2008, originally was slated for completion this year but the impact of the global slowdown has resulted in a number of delays.

The project is now set to open in late 2012 or early 2013.

The revision of Aldar’s plans comes as Abu Dhabi’s retail space is set to boom.

A report by Cushman & Wakefield earlier this year said the UAE capital is expected to double its retail offering to almost 1.8 million sq m by 2015.

Aldar announced last year that it had signed a long term year lease agreement with Retail Arabia to develop the first Géant hypermarket in Abu Dhabi as part of Yas Mall.

It said Géant Hypermarket will be spread over an area of more than 16,000 sq m, and will stock and sell over 65,000 products.

Aldar, the city’s largest real-estate developer by market value, received a $5.2bn bailout from the government in the first quarter, but managed to return to profit after the sale of assets including the Ferrari World theme park.

The builder of the Yas Marina Formula One circuit posted a first-quarter net profit of AED189.1m ($51.50m) compared with a loss of AED314.2 min the same period last year.

Aldar Properties, Abu Dhabi’s biggest developer, expects to open Yas Island water park by first quarter of 2013 and will soon be awarding a construction contract for Yas public beach.

Ferrari World Abu Dhabi

In its project progress update report for May, the developer said: “With construction firm Alec signed on as the main contractor, since January all permits have been received from the Abu Dhabi Municipality, with a new completion date for first quarter 2013.”

The outdoor water park, which will have 40 rides and attractions once completed, was expected to be completed by third quarter of 2012.

In March, Alec, UAE-based contractor, was awarded a $165 million contract for the Yas water park. The water park, situated next to the Ferrari World Abu Dhabi theme park, occupies an area of 13.77 hectares and total gross floor area of 21,000 square metres.

The company said technical bids are currently under review for Yas public beach and the construction contract will be awarded “very soon.”

Aldar mentioned in the report that phase one of the Motor World development will be fully operational by October 1.

The development is made up of three phases. Phase one includes 100 pre-owned car showrooms, two cafes and an Adnoc Vehicle Inspection and Registration Centre. The 100 showrooms have been already leased, the report said.

Last month, Aldar Chief Executive Officer Sami Asad said the company was in a “stable condition” and won’t need any further financial help from the government.

In January, Aldar agreed to sell real-estate assets including a Ferrari theme park and convertible bonds to the government for Dh19.2 billion to reduce its debt.

The developer plans to deliver over 2,500 residential units this year at its Al Muneera and Al Zeina projects on the Al Raha Beach Development. It reported a Dh189.1 million net profit for the first quarter 2011, compared to a Dh314.2 million net loss in the corresponding period last year.

Company shares were trading 0.02 per cent at Dh1.36 on Abu Dhabi Securities Exchange at 11 am.

Abu Dhabi real estate giant Aldar is parading its completed and upcoming projects on Yas Island during Dubai’s Arabian Travel Market 2011.

Future projects on the Abu Dhabi island include major retail complex Yas Mall and Yas Water Park, which are both scheduled for completion in 2013.

Yas Island has already made steps towards becoming a major retail destination with the completion of the largest IKEA store in the MENA region, which opened its doors in March 2011.

Projects that were launched on the island in 2010 include Ferrari World Abu Dhabi – the world’s largest indoor theme park – as well as Yas Links Golf Course and The Yas Yacht Club, a dining and nightlife destination.

Mohamed Al Mubarak, deputy chief executive officer and chief commercial officer, Aldar Properties, commented, “It is great to be returning to Arabian Travel Market to showcase the further developments at Yas Island and explore collaboration opportunities with the wider tourism industry.”

He continued, “Over the past two years, a range of exciting new attractions have allowed Yas Island to establish itself as a destination catering to a diverse variety of visitors from business travellers to family leisure visitors.”

Arabian Travel Market 2011 runs from 2-5 May 2011 at the Dubai International Convention & Exhibition Centre.

World class aquatic architecture firm, Aquatic Design and Engineering, with the support of international water feature specialist Crystal, has created one of the world’s largest and most spectacular, customised water features at the Yas Island Welcome Pavilion in Abu Dhabi.

This multi-million dollar development by Aldar Properties serves as the gateway to Ferrari World, the covered entertainment city on the planet. With its incredible effects, the theatrical water feature sets the stage for the excitement visitors will experience at the Ferrari inspired theme park, including the fastest rollercoaster on earth and an array of luxury hotels, retailers, restaurants and sports facilities.

The choreographed dancing fountain is located in pools on either side of the entrance adjacent to the Ferrari Theme Park. The water feature covers 89,000 sq ft./8268 sq m and is visible from the Welcome Pavilion’s car park. The fountain greets visitors as they arrive and puts on an awe-inspiring show to remember when they leave at night. It uses the very latest LED Lighting and water nozzle technology to provide an endless array of moods and shows.

Thousands of LED lights and nozzles (2,100 Crystal LED Lights, 750 nozzles and 91 custom Crystal CheoreoSwitchesâ) were installed in geometric patterns symbolizing a racetrack to create unique choreographed sequences of water and light. The water feature has a calm, passive daytime mode, utilizing only 10% of power. Throughout the evening, the fountain builds every 30 minutes, dazzling visitors when every light and nozzle is running.

The water feature’s pools are constructed in a series of raised platforms, or steps, that are lined with LED Lights, adding to the geometric effects that the pattern of lights and nozzles create. The fountain can be reprogrammed at any time to produce customised sequences of water and light. For example, the LED Lights can display the colours of a national flag on a particular evening, or perform a tailored one off water show for a special guest. Water and light effects can also be choreographed to “dance” to music. Over the years the fountain will be reprogrammed many times to ensure that visitors never see the same display.

The water feature incorporates a range of different nozzles that are individually programmed to form animated sequences. Aerator Burst Jets shoot water up to 100′/30.4m in the air, and generate a tight stream that rises rapidly but disperses at its peak to fall in a gentle, controlled manner. Aerator Cascade Jets produce geyser-like eruptions of foamy, aerated water that bursts from the surface of the pool and falls heavily in a conical pattern.

LED Lights work to create an endless kaleidoscope of changing colours including Crystal’s LED Ring Lights. These are the latest in LED Lighting technology and consist of a sealed “ring” of individual LED’s, with an allowance in the middle to accommodate a water nozzle. Due to the circular nature of the lights, water effects are surrounded 360 degrees creating intense lighting from all angles.

“Working together with the team from Aldar, ADE had a great development partner who allowed us to create a dynamic and engaging water feature. This will serve as one of ADE’s signature projects for years to come with its innovative look and energy efficient design. Crystal’s products helped us turn our visions into reality,” said Ken Martin, President & Managing Director of Aquatic Design & Engineering

Paul L’Heureux of Crystal commented, “Working with ADE continues to be a privilege. Yas Island could be described as the Las Vegas of the Middle East and the fountain certainly rivals anything you would see there. We employed the most contemporary engineering to help ADE create a fascinating water feature and are delighted with the results.”

Resident parking charges illegal

Tenants in Abu Dhabi were reminded this week that charges by landlords for car parking spaces in residential buildings are prohibited. Under laws issued by the Department of Transport, each tenant has the right to one free parking space in the garage of their building of residence. The law says that unless there is a surplus, landlords are not allowed to lease spaces to tenants who are willing to pay for more spots.

The practice of charging for spaces is still common, however, with some landlords charging up to Dh10,000 per year for a parking space. A common complaint from those forced to pay extra is that their leases did not specify parking charges but when the tenancy contract was due to be signed, the total cost of their rent was increased.

Although some landlords have insisted that the law, which was enforced from November 2009, does not apply to tenants with contracts signed before that date, the DoT said it applies to all tenants.

Building owners can rent additional parking spaces to residents only if surplus parking is available. In buildings that combine residential and commercial space, the law says that residential needs must come first.

Bridge boon for Dubai commute

The opening of the Sheikh Zayed Bridge, which has shortened the drive time between Dubai and Abu Dhabi, is helping Dubai retain the number of commuters who work in the capital, according to a new report by the estate agents Cluttons.

The bridge, which opened in November linking Sheikh Zayed Road with Salaam Street, has shaved an average of 15 to 30 minutes to and from Abu Dhabi, eliminating the need for drivers to take the slower, more congested, routes over the Maqta or Musaffah bridges.

Recording the trends in the Abu Dhabi property market in the fourth quarter of 2010, the report says that despite the recent decline in the rental market, like-for-like properties are still on average 20 per cent cheaper in Dubai, with the Marina and the Greens Community the areas most popular with commuters.

Despite the recent drop in rents in the capital, there is so far little sign that those who work in capital are making the move back.

Analysts believe many are holding out for the expected rent falls of between 10 per cent and 25 per cent that will be precipitated by the release of hundreds of new residential units in Reem Island and Airport Road, expected by the end of the second quarter of 2011.

More taxis needed at new Ikea

Ikea is to enter talks with Abu Dhabi transport authorities in an effort to establish a permanent fleet of taxis outside its store’s new premises on Yas Island.

The low number of taxis currently operating on Yas Island could mean that customers without their own vehicles may face a long wait for transport back to Abu Dhabi city centre. The store says there currently are no plans to provide a customer bus service running from the city centre to Yas Island, similar to that in Dubai.

The Yas Island store is due to open on March 15, the day after Ikea closes its current premises at Abu Dhabi’s Marina Mall for good.

Occupying a space of 33,000 square metres, the new flagship store will be the largest in the Middle East. It expects to serve 1.3 million visitors in the first year of operations.

Acknowledging that the lack of transportation could pose a problem for some shoppers, a spokeswoman for Ikea said the company was making every effort to address the situation. She said the company would be submitting a request to TransAd that a fleet of taxis would be stationed at the store’s exit.

Abu Dhabi is planning to build new shopping malls on Reem Island and Yas Island, according to a recent report by property brokers Cushman & Wakefield.

The projects, to be developed over the next five years and create an array of contract opportunities, will almost double Abu Dhabi’s retail space from 936m² per 1,000 people currently, to a total of 1,700m² in 2015.

By this time, Abu Dhabi will surpass even the per capita retail concentration in Dubai, which presently offers more retail space than any other city, with 1,400m² per 1,000 residents.

Lagging behind will be the US and European countries, which offer around 1,000m² and 200m² per 1,000 people respectively.

Speaking about the report, a representative from the London-based property broker said, “Community developers envision well-planned town centers that serve not only as places to shop, but also as places for fine dining and other leisure activities.”

According to other property consultants however, the increase in retail space will most certainly saturate Abu Dhabi’s retail market.

A report by Colliers International particularly highlighted that by 2013, there will be an oversupply of more one million square metres of gross leaseable area (GLA).

This is contrast to many other Middle Eastern markets, where retail is one of the few sectors that continues to offer contract opportunities.

In Qatar and Egypt for example, demand is far exceeding supply.

The iconic Ferrari World project in Abu Dhabi was named Overall GCC Project of the Year at the MEP Awards 2010, held last night at the Westin in Dubai.

The judges commented that “Voltas demonstrated strong design development focus on what was a colossal undertaking to deliver the very bespoke Ferrari World, across many different facets of the delivery chain and, in many cases, across design, development and value engineering also.

“Ferrari World is the winner for the sheer scale, diversity, depth of project delivery and skill outlined by Voltas in its submission,” said the judges.

Voltas executive VP and CEO Shaukat Ali Mir said: “It is a really great project. The beauty of it is that it is a design-and-build project. The largest covered theme park in the world, it is a testament to our engineering skill and in-house capability.

“There was a lot of attention to detail required, such as working at the heights required and running services up the columns of the main dome,” said Ali Mir.

Voltas GM: business development MENA Ralph D’Souza said: “We are very positive going forward. We are now expanding into other territories, and with the experience we have gained in the UAE, we are well placed.”

“Ferrari World is a landmark project with pioneering work on thermal modelling, energy saving and quality management. Voltas went above and beyond the call of duty to achieve optimum system performance,” stated the judges.

In particular, the judges praised the “ingenious” air distribution system, based on thermal modelling to deliver the required cooling for a unique dome structure 140 feet high, covering an area of two million square feet.

Al-Futtaim Group company gets ready for a Feb 2011 opening.

Dubai, 29 November 2010: IKEA UAE, part of the Al-Futtaim group of companies, is all set to spearhead Yas Islands retail offering as more than 2200 workers make the Blue Box rise above scaffoldings and nodding cranes to ready the Swedish furnishing giant for business in the first quarter of next year.

The 33,000sqm IKEA store more than three times the size of Abu Dhabi Marina Mall store and bigger than the 25,400sqm store in Dubai Festival City is a complete family destination and will form part of Yas Islands retail centre Yas Mall. The present IKEA store in Marina Mall will relocate to Yas Island.

There has been significant progress on the construction and outfitting phases since IKEA broke ground in February last year and from February 2011 is expected to attract around 1.3 million visitors in the first year of operations with more than 60 percent of them being cash customers.

Our project team is satisfied with the construction and outfitting progress and like promised during the ground breaking in February this year, IKEA will be ready to welcome nearly one and a half million visitors in the very first year of operations, said Mile Franicevic, General Manager IKEA UAE. IKEA will be one of the first globally recognised retailers to operate from Yas Island and in keeping with IKEAs vision, will offer a wide range of home furnishings of good design and function at prices so low that the majority of people can afford to buy them,” Mr. Franicevic said.

Construction is progressing well and the buildings shell will be completed by the end of the year thanks to more than 2,200 employees working round the clock to complete the building works. Installation of the grid ceiling, vinyl flooring and racking installation is in progress and work on the car parking is well underway.

IKEA Yas store will have 1,400 parking bays for its visitors who will be served by 35 cash tills at the back of a total sales area of 19,150sqm. The cash tills include refund/exchange desks and IKEA Food & Beverage counters. Alongside Market-Hall (6,000sqm) and Showroom Furniture (6,150sqm) areas, there will also be a 550-seat, 2,100sqm restaurant serving popular Swedish delicacies as well as its healthy and affordable breakfast and lunches. There is also an exciting and fun IKEA play area for the young customers.

Mohammed Al Mubarak, Chief Commercial Officer, Aldar added: We are extremely pleased with progress on the construction of IKEAs flagship store in the Middle East. The incredible attractions such as Yas Marina Circuit and Ferrari World Abu Dhabi are clearly the major draw today, but an incredible shopping experience will be at the very heart of what Yas Island has to offer. This will all start with this exciting store and we look forward to celebrating delivery with Al-Futtaim and IKEA early in 2011.

About IKEA UAE
IKEA UAE, a member of Al-Futtaim group, offers an extensive range of home furnishing items of good design, value and functionality. IKEA UAE closely follows the popular self-serve, self assembly concept which was conceived in Sweden over half a century ago and offers customers a complete family day out through its ability to cater to childrens needs. Toll free number for the world-famous brand is 800 4532 (800 IKEA). For more information visit www.IKEAuae.com

The company will show off the products it used to complete Yas Island’s Ferrari World theme park. Global manufacturer of adhesives, sealants and chemical products for buildings, Mapei, is today showcasing its newest products used on the flagship Ferrari World theme park, which opened last month.

Making full use of the opportunity to have face to face interaction with its customers, the company will be promoting its products in the presence of technical experts from Mapei HQ, who can offer technical advice on correct material selection and specification, as well as installation and finishing.

The Italian firm, which is exhibiting at the Big 5 show for its sixth year, is also making the most of the chance to tell customers about agreements made with three new resellers located across the UAE, in response to a high demand for its products throughout the region.

Business Development Director Laith Haboubi said: “For us the Big 5 show is one of the most important exhibitions. It is a chance to highlight our presence in the market, and interact with our clients, existing and new. The Big 5 is something we have to be involved in, and is certainly a very effective venue to present the latest milestones of Mapei including our role in the development of Ferrari World.

“The new products we are showcasing include a water proofing system, resin flooring and a new building line. There is also a new product used in underground work, as there are a lot more projects underground now in Dubai and Abu Dhabi.”
For Ferrari World, Mapei supplied waterproofing materials that covered 25,000m2 using Mapelastic Smart, which is a two-component, high flexibility cementitious coating for waterproofing concrete surfaces in permanent contact with water.

The firm also utilised Mapenet 150, which is an alkali-resistant fibreglass mesh used to reinforce waterproof protection layers, anti-fracture membranes and cementitious smoothing and levelling layers.

But to provide full integrity, corners and penetrations received Mapeband, a rubber tape with alkali-resistant fabric specifically designed for cementitious waterproofing systems and liquid membranes.

The waterproofing system was finally overcoated with Elastocolor Waterproof, a flexible, water-based acrylic resin-based paint to provide the aesthetic appearance required.

Mapei also supplied the project with more than 16 other products including Mapei’s adhesives and grouts ranges that were used in different applications, such as marble, ceramic, glass mosaic and porcelain.

Speaking about the new reseller agreements, Haboubi added: “We signed these all of these agreements in the last three months, we will be mentioning them to our clients. We also have some more reseller agreements coming up.