Al Habtoor Group LLC, the closely held owner of hotels in Dubai, plans to add three towers to its development on the city’s main Sheikh Zayed Road that will include penthouses the company values at $245 million.
The Al Habtoor City development will include 1,460 apartments and three hotels with more than 1,600 hotel rooms, the company said in statement distributed at the development site today.
Hotel occupancy in Dubai has been among the highest in the world this year at 78 percent, Philip Wooller, Middle East and Africa director at STR Global said on Sept. 29. Residential prices increased 21.7 percent in the second quarter, the fastest pace in the world, a survey by Knight Frank LLP showed.
The additional towers boost the value of the Al Habtoor City project to 11 billion dirhams ($3 billion,) the company said. A total of 11 penthouses will be built. The two biggest will have four floors and won’t be sold for less than 900 million dirhams, Chairman Khalaf al Habtoor said today at the site.
The development on one million square feet will include a French-style garden and an air conditioned tennis court. Al Habtoor will finance the development with its own resources, Khalaf al Habtoor said. “If some banks want to give us competitive rates, we would welcome that,” he said.
Construction is likely to be completed by early 2016, the Chairman said.
Al Habtoor’s joint venture with Leighton Holdings Ltd., Australia’s largest construction company, is building the hotels in the Dubai project. The venture will be given priority for the contract to build the residential part, but only if the price is competitive, Khalaf al Habtoor said.