Meydan and Guangsha sign MoU for Business Park

By Ben Roberts  www.constructionweekonline.com

Dubai-based conglomerate Meydan Group has signed a memorandum of understanding with Chinese firm Guangsha Middle East Construction for the construction and development of the first phase of the Meydan Metropolis Business Park.

The Business Park is the latest aspect of the Meydan project

Located within the freezone of Meydan City, a 60.96million square metre site that includes the Meydan Grandstand and racecourse, the deal is the second collaboration for the two companies and is a milestone for the ambitious project, which intends to mix sporting facilities with business and entertainment.

The contract includes 16 commercial buildings for office and retail outlets and will include near to 3,000 car park spaces. It has been designed by Malaysian architects TAK Design Consultants. Several of the office buildings have been pre-sold to Emirates NBD and Amlak Finance, according to the company.

“The objective is to be the leader in the market,” said Meydan chairman and CEO Saeed Humaid Al Tayor at a press conference earlier today. “This project has seen big capital, and we’ve had people knocking on the door looking to relocate here.”

He said the company has between 65-70 investors. “We’ve had partnerships with banks for the last three years, and so far we are satisfied with the relationships,” he said.

Guangsha Middle East – part of Guangsha Holding Venture Group, a diverse conglomerate with interests in energy, tourism and media among other sectors – had previously provided the Falcon car park and facilities in the complex.

Lou Zhong Fu, chairman of Guangsha Holding Venture Capital Group, said: “It is a pivotal component of the urban plan for Meydan City and allows us to further showcase our construction prowess and also strengthen our ongoing partnership with Meydan.”

Asked if Meydan would scale down some of its project plans in the midst of a prolonged economic slump and a slower construction market, Al Tayor said: “It’s only wise to sit down and reassess what’s happening in the world. When we embark on a project we have to undertake a risk analysis.

“We had a timeframe and so far we have been fairly satisfied with the deliverables. [We know that] if we are not ready when the opportunity comes we will get left behind.

“Certain deliverables” of the Business Park are expected to be in place in the next 13 to 15 months, he added.

Later he added to journalists that there had been “a reduction in overall construction costs… some substantial savings, although some things are decided by the market. We’ll sit down with our suppliers. I’m a business person, and so like all people to prosper”.

He said the two substations for the Business Park – SS7 and SS8 – have already been built and that this is ahead of normal protocol whereby the construction of buildings and infrastructure run parallel.

In answer to a question over the prospective price of buying business units, he said: “It depends on how much investors would seek to acquire”, adding that the days of people pushing price packages could be near an end.

He revealed also that there is no automatic roll-over of contracts with one supplier from one part of the overall project to the next, saying that he would give “as many companies as possible that chance to come on board” by tendering their services.