‘Deerfields Town Square’ project is an AED1 billion mixed-use development featuring retail, commercial, residential and hospitality components. Reflecting ‘Classic Victorian’ architecture, the project will be located at Al Bahia on the outskirts of the emirate of Abu Dhabi, contributing to its growing retail and tourism industry, while creating an all-encompassing destination for living, working, shopping, entertainment and dining. The project, which is scheduled for completion in 2010, will comprise a spectrum of indoor and outdoor leisure facilities.

The project is set to contribute to Abu Dhabi’s growing retail and tourism industry, while creating a comprehensive destination for shopping, Living, working, entertainment and dining - all within the same premises.

The project is launched at a time when Abu Dhabi’s expansion plan for office space is to reach 850,000 square meters by 2011, and Abu Dhabi Tourism Authority (ADTA) is to build 4,000 hotel rooms in the next three years as part of the overall strategy to add 17,000 rooms by 2015. Deerfields contributes to the growth by reducing the gap and serving the demand in the market in retail, commercial, hospitality and residential space.

AED 1 billion

Mubarak and Brothers Financial and Property Investment (MBI) is the sole investor in the project. Led by H.E. Saeed Al Fahim, an established businessman in the UAE, MBI is a private multi-sector investment company set up to meet the growing demand for premium space in Abu Dhabi’s retail, commercial and residential markets, on the back of the emirate’s major economic expansion.

From the project’s unique Victorian style architecture and unique design layout to its idyllic location in Al Bahia, Deerfields will boast several differentiating factors. Located only six minutes away from the Abu Dhabi International Airport, five minutes from Abu Dhabi’s largest entertainment park, Warner Brothers, and Formula 1 Race Track, it will also be just three minutes away from the Abu Dhabi – Dubai highway.

With over 200 retailers from different segments, anchor shops, stand alone retail boxes, food courts, casual and fine dining restaurants and coffee shops, a hyper market, and 12-screen multiplex, Deerfields Town Square will be a one-stop-destination providing an eclectic entertainment and retail experience.

This part of the project will comprise eight towers with an estimated 15 floors, and will include hotels, offices, serviced and residential apartments, swimming pools as well as spas.

The project will be completed by end 2010.

The Deerfields project aims to add a unique architectural element to the UAE retail sector, diversifying the overall offering. We are not just building a multi-use real estate development but an inspirational destination. We are focused on crafting an ideal blend of high-demand retail offerings with stylish architecture and expansive landscaping. Our aim is to provide tenants, residents and shoppers a holistic experience in entertainment, living, working, and shopping – all within one location.

The Abu Dhabi emirate has embarked on an ambitious multi-billion dirham programme that will achieve fruition over the next 10 years. Our objective is to meet Abu Dhabi’s growing demand for premium space in the emirate’s retail, commercial and residential markets, In this process, we seek to bring to life a project that has the potential to sustain itself while complementing the growth of its surroundings areas.

The UAE’s total retail potential is projected to be AED46 billion. The annual report by Retail International has predicted expenditure in the UAE's retail sector to exceed AED37 billion. Currently, the average retail space available per individual is 2.1 square meter in Dubai. It is less than one square meter in both Abu Dhabi and Sharjah, which is similar to the average retail space in Doha and Manama, while representing only 50 per cent of the average in the US.

According to the world annual retail report, the average retail rental area in the Gulf region reached 7.75 million square metres by end 2007, reflecting a 2.1 million square meter increase in comparison to the previous year. A similar or even higher growth in retail area is projected for 2008. Experts anticipate by 2020 the retail space will exceed 18.5 million square metres in the GCC countries.

In 2000, there were no destination retail venues in Abu Dhabi. During the intervening period, there has been a notable shift towards providing international standard shopping malls, doubling-up as visitor destinations. The Marina Mall and the Abu Dhabi Mall opened during 2001, contributing a total gross leasable area (GLA) of 139,000m², followed by a further 35,000m² at the Marina Retail Park in 2002. In 2006, Phase II of the Marina Mall contributed an additional 40,000m² of GLA to the city’s available retail mall stock.

The opening of Al Raha Mall and Al Wahda Mall in May and July 2007 respectively increased the existing supply by a total of 172,500m². Early indications suggest that these malls are performing in line with the operator’s expectations. An additional 46,000m² came online in November 2007 with the completion of the Al Khalidiyah Mall.

In mid-2008, Aldar Properties is expected to complete a modern Arabian Souq (ShopCentral), as part of its flagship Central Market development. With the addition of this new offering, it is anticipated that traditional modes of downtown retail in Abu Dhabi will change dramatically. This is in part due to the location of the Central Market project. The year 2010 is likely to represent a watershed for retail sector in the city, with Sorouh Real Estate set to open the Al Reem Mall with 130,000m² of GLA and the Al Yas development adding a further 300,000m² of gross leasable area. The GLA in the emirate of Abu Dhabi is set to increase by 165 per cent from 526,700m² at the end of 2006 to 1.4 million m² by 2010.

By 2010, Abu Dhabi is expected to have 0.87 m² per capita GLA. It is projected that in order to sustain this volume of retail mall stock, an approximate annual per capita retail spend of US$4,900 would be required.

The Abu Dhabi government has clearly identified that the emirate is embarking on an ambitious strategy to attract three million visitors per year by 2015. Tourism is a critical element in the overall development of Abu Dhabi. It will stimulate and diversify the economy, generate new private sector opportunities, and elevate the emirate’s international standing.

The tourism industry’s direct impact generated AED3.7 billion in business, or 1.2 per cent of GDP in 2005. Tourism directly generated 32,028 jobs in 2005, or 3.3 per cent of all employment. Including the indirect impact, tourism totally generated 73,494 jobs or 7.6 per cent of all employment in the emirate in 2005.

The total impact of tourism on the economy was AED8.7 billion in 2005, or 2.9 per cent of the GDP. Excluding the oil sector, the tourism sector makes up 7.1 per cent of Abu Dhabi’s remaining GDP. Tourism GDP has grown 62 per cent over the past five years and over 17 per cent in the past two years.

Key targets for 2015 include up to 1.2 million leisure tourists a year, 1.55 million business tourists a year, and 60 new hotels to be constructed in Abu Dhabi with around 21,000 employment opportunities to be created in the hospitality industry. The expanded tourism industry is projected to generate AED26 billion of investment opportunities.

I believe the hospitality sector in Abu Dhabi holds major opportunities for growth that could even surpass expectations. The demand for hotel accommodation in the city is predominantly driven by business tourism, which accounts for 75 per cent of the overall hospitality market demand.

According to a recent report by Colliers International, in 2006 Abu Dhabi witnessed average hotel room occupancy rates of 78.6 per cent, while serviced apartments achieved approximately 80 per cent occupancy. Average room rates rose by approximately 40 per cent compared to the previous year, to US$167 and US$235 for 4-star and 5-star rooms respectively. The Abu Dhabi Tourism Authority (ADTA) has an ambitious plan seeking to increase the market share enjoyed by the leisure tourist segment to 40 per cent by 2015. ADTA plans to achieve the target by developing destination attractions for culture, and sport, as well as for meetings, conferences and exhibitions, and tourism segments.

In line with the government’s objective to stimulate tourism, the ADTA plans to license the construction of 17,000 new hotel rooms in the emirate by 2015. There are currently 9,500 rooms (including all hotel categories and serviced apartments), with Abu Dhabi city accounting for approximately 8,000 rooms, and Al Ain, Al Dhafrah, Mafraq, Ruwais and Liwa providing the remainder. Increases in the number of visitors to Abu Dhabi and an expansion in the destination reach of Abu Dhabi-based Etihad Airways have boosted strong occupancy rates and ARR growth during the past 18 months. This growth promises to be sustainable with Abu Dhabi carving out a position for itself as a niche business, sporting and cultural tourism destination.