Property sale attracts crowds and chaos



DUBAI // More than 400 people who queued for hours yesterday in the hopes of buying property had to be dispersed by police after huge queues caused chaos.

The crowd - mainly labourers paid to save a place in the queue for buyers - waited outside Emaar Square from the early hours as the developer launched its Mira project.

With only 188 townhouses and prices starting at Dh988,888, demand was huge.

"We've had eight people in the line for most of the day," said Matthew Philip, a real estate agent, who was there to purchase on behalf of some clients.

"It's been crazy the whole day and now the police have told everyone to leave."

There was confusion among those in line earlier in the day when they were initially told the sale would go ahead at 9pm.

"Now someone from Emaar has said it will take place on Saturday morning on a first-come-first-served basis," Mr Philip said.

"They say they will only have the buyers in the line and they must bring their passport and cheque book with them.

"They should have done this from the start that way we wouldn't have had all this."

Police patrol cars as well as ambulances were at the scene as the crowds gathered around the area blocking traffic. At about 7.30pm police, along with Emaar security staff, put up barriers and forced people away from the entrance to the company's offices.

"We were in the queue ourselves and will probably come back again in the morning," said Hitesh Kumar, who wanted to buy a townhouse.

"I have a budget of between Dh1 million and Dh2 million. Anything over that is too much for me."

He said Emaar was popular because of the quality of the projects, which have been delivered on time.

The Mira development will be the first to take place in the Reem area located on Mohammed bin Zayed Road between Arabian Ranches and Global Village.

The project would feature a desert botanical park, camping facilities, sand surfing and camel riding trails, a go-karting and dune buggy track, a rock climbing wall and a skate park.

Mira is expected to be completed by 2016.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners