Week's property news
Wednesday, 28 May 2008
First ever FDI in housing sector
FE Report
The first ever foreign direct investment in housing sector came from a leading Middle East realtor, Rakeen Development Company.
Owned by one of the seven emirates of UAE, Rakeen has purchased Siddiq Textiles and Weaving Limited recently with a plan to develop a posh township on the premises of troubled factory.
Official sources said the company, whose projects spanned from the Eastern European nation of Georgia to India, would dismantle the factory and turn its 40 acres of land at Kanchpur into a luxurious housing company.
The Ras Al Khaimah (RAK)-based Rakeen Development Company is one of the largest in the Gulf having an authorised capital of US$817 million. It has stakes in property development, tourism, township building, commercial and industrial sectors. It is also part of a group of companies owned by the ruling family of the RAK Emirate.
The family's holding company RAKIA last month unveiled a plan to invest US$1.00 billion in industrial park, five star hotel, golf club, shopping mall and a theme park in Bangladesh.
Last year a top Singaporean company tied up with a local realtor for investment in the housing projects in the capital. But the tie-up collapsed without any investment.
Sheraton or new name?
FE Report
Dhaka Sheraton Hotel, the country's first international five-star hotel, would not carry the name of Starwood after its agreement with global hotel chain ends this year.
The 25-year agreement between Starwood Hotel and Resorts Worldwide with Bangladesh Services Ltd (BSL) to manage and operate Dhaka Sheraton is likely to expire by December this year.
Although Starwood has assented to manage the state-owned Dhaka Sheraton Hotel for another term on condition of its complete renovation, the BSL however denied the offer because of huge cost involvement.
The BSL officials also hinted that they are unwilling to renew its agreement with Starwood as the US-based company has already signed a management deal with Westin Hotel at Gulshan.
Against the backdrop, a meeting of the BSL board was likely to be held on Monday to discuss Starwood's conditional offer and other proposed offers by four top five-star hotel chains.
These hotels are Hyatt Regency of USA, Novotel of France, Marriott and Shangri-La which the sources said have already contacted BSL to take over its management.
The BSL board might discuss time frame for floating international bid to appoint new operator for the hotel, if there is no consensus to start negotiation with Starwood, a senior official said.
Building Construction Ordinance-2007 likely to be released
FE Report
Before going into full implementation, the government is set to relax the Building Construction Ordinance-2007 allowing the realtors to build taller buildings on smaller plots.
Several rules in the ordinance would be amended raising the Floor Area Ratio (FAR), a key demand of the realtors Real Estate and Housing Association of Bangladesh (REHAB).
(REHAB) have been lobbying to amend the rules since the enactment of the construction ordinance last year.
But realtors said the existing FAR rules have gone 'too far' and do not reflect the reality here as they 'massively' increased construction cost amid sky-rocketing prices of land in major cities.
New road to link Rokeya Sarani and Airport Road
FE Report
A 2.6-kilometre road to link Airport Road and Rokeya Sarani.
Construction of the road connecting Airport Road to Rokeya Sarani will be inaugurated on May 31. It will also link Ring Road at Shyamoli and Dhaka-Chittagong Highway, and likely to reduce pressure on Bijoy Sarani and Airport Road.
The project costing Tk 249.2 million (24.92 crore) is being implemented by Dhaka City Corporation (DCC).
Chief Adviser Fakhruddin Ahmed is expected to inaugurate the construction of the road.
FE Report
The first ever foreign direct investment in housing sector came from a leading Middle East realtor, Rakeen Development Company.
Owned by one of the seven emirates of UAE, Rakeen has purchased Siddiq Textiles and Weaving Limited recently with a plan to develop a posh township on the premises of troubled factory.
Official sources said the company, whose projects spanned from the Eastern European nation of Georgia to India, would dismantle the factory and turn its 40 acres of land at Kanchpur into a luxurious housing company.
The Ras Al Khaimah (RAK)-based Rakeen Development Company is one of the largest in the Gulf having an authorised capital of US$817 million. It has stakes in property development, tourism, township building, commercial and industrial sectors. It is also part of a group of companies owned by the ruling family of the RAK Emirate.
The family's holding company RAKIA last month unveiled a plan to invest US$1.00 billion in industrial park, five star hotel, golf club, shopping mall and a theme park in Bangladesh.
Last year a top Singaporean company tied up with a local realtor for investment in the housing projects in the capital. But the tie-up collapsed without any investment.
Sheraton or new name?
FE Report
Dhaka Sheraton Hotel, the country's first international five-star hotel, would not carry the name of Starwood after its agreement with global hotel chain ends this year.
The 25-year agreement between Starwood Hotel and Resorts Worldwide with Bangladesh Services Ltd (BSL) to manage and operate Dhaka Sheraton is likely to expire by December this year.
Although Starwood has assented to manage the state-owned Dhaka Sheraton Hotel for another term on condition of its complete renovation, the BSL however denied the offer because of huge cost involvement.
The BSL officials also hinted that they are unwilling to renew its agreement with Starwood as the US-based company has already signed a management deal with Westin Hotel at Gulshan.
Against the backdrop, a meeting of the BSL board was likely to be held on Monday to discuss Starwood's conditional offer and other proposed offers by four top five-star hotel chains.
These hotels are Hyatt Regency of USA, Novotel of France, Marriott and Shangri-La which the sources said have already contacted BSL to take over its management.
The BSL board might discuss time frame for floating international bid to appoint new operator for the hotel, if there is no consensus to start negotiation with Starwood, a senior official said.
Building Construction Ordinance-2007 likely to be released
FE Report
Before going into full implementation, the government is set to relax the Building Construction Ordinance-2007 allowing the realtors to build taller buildings on smaller plots.
Several rules in the ordinance would be amended raising the Floor Area Ratio (FAR), a key demand of the realtors Real Estate and Housing Association of Bangladesh (REHAB).
(REHAB) have been lobbying to amend the rules since the enactment of the construction ordinance last year.
But realtors said the existing FAR rules have gone 'too far' and do not reflect the reality here as they 'massively' increased construction cost amid sky-rocketing prices of land in major cities.
New road to link Rokeya Sarani and Airport Road
FE Report
A 2.6-kilometre road to link Airport Road and Rokeya Sarani.
Construction of the road connecting Airport Road to Rokeya Sarani will be inaugurated on May 31. It will also link Ring Road at Shyamoli and Dhaka-Chittagong Highway, and likely to reduce pressure on Bijoy Sarani and Airport Road.
The project costing Tk 249.2 million (24.92 crore) is being implemented by Dhaka City Corporation (DCC).
Chief Adviser Fakhruddin Ahmed is expected to inaugurate the construction of the road.