Dubai-based real estate developers Bawadi and Emaar Properties have formed a AED 60,000 million ($16,349 million) joint venture to develop

5.5 million square metres of land in Dubailand.

They will build a 1.5 million square metre theme park, business hubs with a total of 250,000 square metres of commercial space, 300,000 square metres of shopping malls and other retail properties. A central boulevard will be ringed by six hotels. It will have 18,000 residences, with low-rise villas and townhouses as well as high-rise towers.

Bawadi will contribute 70 million square feet of land, valued at AED 3,850 million ($1,050 million). Emaar will contribute AED 3,850 million ($1,050 million) to finance the project.

The joint venture is expected to generate earnings by 2009. The management expects the compound annual rate of return on the project will exceed 15 per cent. It will be governed by a board with representatives from both Emaar and Bawadi. The chairman will be appointed by Emaar. The venture will be managed by Emaar through a management and technical

services contract.

The deal increases Emaar’s

land bank in Dubai by 76 per cent, to 15 million square metres. (MEED 28:8:07).