Dubai developer plans second project in Turkey and wants to revive talks over Indonesian resort

Dubai’s Emaar Properties, the builder of the world’s tallest tower, owns land in Libadiye, Istanbul, and is now finalising the cost of developing a shopping mall, residences and a five star hotel.
 
‘Emaar is proceeding with the development of the New Istanbul Project. This is in line with the company’s strategy of seeking growth opportunities in promising global markets,’ it confirmed in a statement.
 
It will be a second project for the developer, which is 32% owned by the government of Dubai, in Turkey. It has already completed the first phase of a $700 million gated community.
 
But it is still not clear what is happening with its plans to expand into Indonesia. ‘Indonesia is one of the key markets for Emaar, and our expansion to the country is in line with the company’s growth strategy of geographic expansion and business segmentation. The Lombok Project will create a new dynamics to the property sector of the region and the resort style project will catalyse inward investments to Indonesia,’ Sergio Casari, chief executive of Emaar International, said in June last year.
 
‘Emaar has completed the master-plan for the project already and we look forward to completing all necessary formalities and obtaining governmental approvals for commencing development,’ he added.
 
But plans for the $600 million waterfront resort have still not moved forward. Emaar had initial talks with the Indonesians in 2007 on a development for Lombok Island, which is next door to Bali and administered by its authorities. But talks floundered at the height of the global economic crisis.
 
However, the company confirmed it hopes to revive the plans which include villas, hotels, shopping facilities and a golf course. Problems have surrounded establishing an agreement with Pengembangan Pariwisata Bali, an Indonesian government backed company, over equity sharing and land acquisition.
   
It is clear the developer is keen to move away from the bust that has seen prices in Dubai’s once booming real estate market plunge 50% from the peak of the market in 2008. It said last month that it would focus on middle income housing in emerging markets and overseas expansion to boost 2010 revenue after returning to profit in the fourth quarter of 2009.