On Behalf of

Business & Finance Club - Real Estate - Dubai: Although there has been little publicity about the other projects master developed by Limitless, the $13-billion (about Dh47.7 billion) Downtown Jebel Ali has been quietly making progress.

Most of the activity has focused on The Galleries, a mixed-use development adjacent to Shaikh Zayed Road. About 50 per cent of the offices in this eight-building cluster have already been leased or are under negotiation.

Such is the level of interest generated in the development that Limitless — one of the property arms of Dubai World — is confident about filling up the rest.

The sales pitch for its upcoming residential units harks on the livability factor. "Research by Limitless has shown that the ability to walk to work and being close to a Metro station are top priorities for people choosing a home in Dubai," says Salah Ameen, deputy executive director for Limitless in the Middle East. "The Galleries aims to be a walkable, environmentally-friendly community to live and work, with sustainability and social interaction at its heart."

Ameen is not indulging in fanciful talk. The eight buildings that make up The Galleries are evenly split between commercial and residential, and it is conceivable that some people who work there would consider taking up residence within the same precinct. Moreover, access via the new interchanges on Shaikh Zayed Road and a relatively easy connection to the Dubai Metro will surely enhance its appeal to tenants.

The development's first 323 residential apartments — a mix of one-, two- and three-bedroom units — will be available to lease at the end of this year. Limitless believes there will be demand for these both among professionals working in the vicinity as well as those who seek a residential base within easy commuting distance of Abu Dhabi. "What we have is a community where you can work and live," says Ameen.

The commercial component of The Galleries has made the most progress, lining up companies such as Citibank, Standard Chartered, Ericsson, Kraft Foods and L'Oréal.

That it has managed to do so in such a relatively short period of time in such trying circumstances is commendable.

The open floor plates at The Galleries feature Grade A space ranging between 2,000 and 15,000 square feet per floor, on single or multiple floors. Limitless has tied up with DTZ to ramp up the leasing programme. "The market is now seeing increased occupier activity and we are experiencing good levels of demand for office accommodation, particularly those with Metro access," says Joe Garwood, head of agency at DTZ.

Tenants can sign up for leases of three to ten years. While unwilling to comment on the rental rates, Ameen says the offices are all offered shell-and-core, replete with raised floors. "Some companies would like to find out the price of fit-outs, we could help them in the estimation," he says. "In the case of big firms taking up a few floors, our internal firm could help them design the interiors if they so wish."

Limitless will also bring an internal facilities management firm to oversee the day-to-day operations at The Galleries. "All tenants are treated on a case-by-case basis, there is no one-size-fits-all approach," says Ameen. "We will try to tailor the leasing package to our customers' requirements."

Future deliveries at Downtown Jebel Ali will continue to be market driven. In Zone 1, Limitless itself is developing The Galleries and The Plaza, which combined make up 14 plots out of the total 39 in zone one. "It's our role to initiate development in the zones," says Ameen.

Work on the first plaza — the transport and retail hub in the centre of zone one — is expected to start when market conditions improve. Eventually each zone will have a plaza, connecting the district to a Metro station. "What's happening in the market is affecting our pace of development — the plaza will open when market conditions improve," says Ameen.

Denying that the masterplan has been scaled down, Ameen admits that sub-developers spanning the four zones in Downtown Jebel Ali are seeking alterations to the payment plan. "Over the last 18 months, we've been working with sub-developers on a case-by-case basis and putting together a revised payment plan that helps them manage their payments in a way that works for them and us."

In accordance with a clause in the sales and purchase agreements entered into with Limitless, sub-developers have to complete construction five years from the date of purchase of the plot, though this is open to negotiation to reflect market conditions.

"We sold the plots at different intervals over a period of two-and-half years," Ameen says. "Sub-developers who purchased in zone one have a different delivery date from those in other zones." While three buildings are already under construction in zone one, five sub-developers have submitted designs and are expected to start construction in the second half of 2010.

A few others are in the process of finalising their designs and are expected to have their permits and designs ready by the end of the year.

The master-developer will eventually retain between 30 to 35 plots out of the 300 in the 200-hectare Downtown Jebel Ali. While Limitless prefers not to impose construction deadlines on sub-developers, the developer reiterates the fact that infrastructure work on zone one is ready for third party construction to begin.

According to Limitless, over 75 per cent of zone one's infrastructure is complete, with district cooling, drainage and sewerage pipes ready. The sub-stations are expected to be ready by July.

With Downtown Jebel Ali being Limitless' flagship project in the UAE, the developer is using the revenue generated from land sales to fund construction. "We have sold almost 70 per cent of plots in the development," Ameen says.

The residential and commercial buildings at The Galleries are separated by a 20,000 square metre landscaped plaza. A 300-seat amphitheatre will be a key element of the outdoor plaza, which also features 200 trees imported from China, fountains, pools and shaded areas. Limitless has spent Dh140 million on landscaping the plaza, touted to be the focal point for future cultural activities. In terms of green building practices, all sub-developers in Downtown Jebel Ali have been instructed to achieve Leed (Leadership in Energy and Environmental Design) certification. Limitless aims to eventually introduce a people mover transit system to connect the four zones, but has not yet disclosed details on what exactly this will consist of.