Nakheel Forms New JV Company To Lease And Sell Properties In Dubai

Dubai-based developer Nakheel announced that it has signed a joint venture agreement with German real estate brokerage firm Engel & Völkers to form a new company specialising in selling and leasing properties across Dubai.

The agreement follows a letter of intent, signed between the two companies in 2014, to seek global opportunities by bringing together their areas of expertise.

The new company, created through the joint venture, will operate under the Engel & Völkers brand, the developer said in a statement.

As per the deal, Nakheel will be able to market its properties through Engel & Völkers’ 600 offices, spread across 38 countries, spanning five continents. The Dubai property firm will also benefit from the wider international exposure with a global clientele, the statement said.

In turn, Engel & Völkers shops can refer interested buyers to the joint venture in Dubai, leading to extensive cross-selling opportunities.

The new joint venture company expects to open its new, 850 square metre Dubai Market Centre, based at Nakheel’s head office, in the first quarter of 2015, the developer said. It will have about 250 staff in total.

“This exciting joint venture is a natural progression for both Nakheel and the Dubai real estate sector,” said Ali Rashed Lootah, chairman, Nakheel.

“We are delighted to partner with E&V to create this new company, which will allow us to tap into new markets and give investors worldwide the opportunity to become part of the ever-evolving emirate of Dubai.”

Dubai’s property sector has been recovering steadily over the last few years with real estate prices growing by nearly 50 per cent within the last two years.

Nakheel, which was badly hit during the financial crisis in 2008, has also recovered rapidly in tandem with the emirate’s property market.

The developer reported a net profit of Dhs2.6 billion for the first nine months of 2014, up 47 per cent compared to Dhs1.77 billion during the same period in 2013.

Nakheel’s current portfolio of developments in Dubai includes Palm Jumeirah, The World, Deira Islands, Jumeirah Islands, Jumeirah Village, Jumeirah Park, Jumeirah Heights, The Gardens, Discovery Gardens, Al Furjan, Warsan Village, International City and Villas at Nad Al Sheba.

The company’s retail developments in Dubai include Dragon Mart, Ibn Battuta Mall, Nakheel Mall and Hotel, The Pointe at Palm Jumeirah, Deira Islands Mall, Jumeirah Village Triangle Mall and some community malls.

Recently, Nakheel also procured the ownership rights to the Golden Mile development, a retail strip in the trunk of Palm Jumeirah.