Galadari will invest up to Dh5.5bn in property

Europe,” GIO Chairman Rashid AW Galadari told Emirates Business.

The company will be targeting properties in the commercial, residential, retail and hospitality sectors. Galadari declined to give any timeframe for acquisitions, saying: “We don’t believe in rushing into things.”

GIO is also transforming itself into a holding company, with separate divisions dealing with development, acquisitions and other areas.

“We, as a group, are looking to become one of the top luxury holding companies in the world,” he emphasised.

In February, GIO broke ground on its Dh1.7bn G Tower, a branded residential tower located in the 20 million sq ft City of Arabia project. The 45-storey building has been designed by Alex Vacha, while Philippe Starck and his company Yoo has done the interiors. It is set for completion by 2010.

According to Galadari, a number of project launches are in the works and a foray into the Abu Dhabi realty sector is a strong likelihood.

“We definitely believe in Dubai, but we have been discussing Abu Dhabi quite a bit now. We feel there are a lot of opportunities over there. And when it comes to the luxury market, the capital definitely has the cash. We haven’t physically stepped in or gone and spoken to anyone as yet,” he said, without revealing the total size of the property investment.

GIO is looking to tie up with reputed brands that currently are not present in the regional market. “These brands need to contribute physically rather than just lend their names,” he said.

Galadari said people have approached the firm from regional markets such as Qatar for expansion of the GIO brand. “A few people have approached us from Qatar who wanted to introduce the GIO brand to that market.”

The company is not finding it difficult to get contractors on board, but getting them at the “right” price is a difficult task. “Construction costs have gone up by not less than 20 per cent in the past one year. There is nothing we can do, but what we are doing is that we are not selling everything in one go. The price appreciation we get over time helps us to offset price escalations.”

Developers the world over tend to sell 30 to 40 per cent of a new project to ascertain market perception and brand recognition. They hold back the remaining 60 to 70 per cent and sell it during various construction phases to cover their costs.

Although salaries have shot up considerably due to talent crunch in the real estate market, Galadari believes providing housing facilities will help keep salaries stable. “One of the best ways to keep it [salaries] normal is to provide housing facilities or housing allowance. We might look at providing housing facilities as well.”

Introduction of escrow account in Dubai is a good way to filter the market, he said. “It shows the government’s initiative to ensure a prosperous workplace for everyone, while it protects both developers and investors.”

Galadari ruled out reports of a slowdown in the property sector. “I have been hearing this for the past seven years, but the property exhibitions have grown bigger.”

When asked about a public listing of GIO, he said: “We will eventually list the company, but no timeframe has yet been set.”

New Heights

Born into entrepreneurial lineage, Rashid AW Galadari established the RAW Galadari Group after graduating from university, leveraging his association with the Galadari Group, which was established more than 140 years ago and has evolved to become one of the most prominent commercial groups in the region.

The group’s activities range from high-profile consumer brands sold through retail outlets to the supply of heavy industrial plants. As chairman of the RAW Galadari Group, he has been driving and expanding business across the Middle East. The latest offshoot of the business is the Galadari Investment Office. Launched in July 2005, GIO aims to transform the property market landscape in the region by developing a series of projects that transcend the norm and break conventional barriers. Galadari’s vision is to expand the business across the region, ensuring that the family name reaches new frontiers. He has already proven his business acumen by establishing GIO.