Dubai-based Skai Holdings says it is set to begin the main structural work on its Viceroy Dubai Palm Jumeirah project.
The resort, which offers 479 rooms and suites and 222 residences, has a unique investor model that enables buyers to purchase hotel rooms, which are then leased back in exchange for 40 per cent of the room revenue. The investment firm says all available inventory in the AED3.67bn ($1bn) project has been sold.
Today marks a key development in the construction of the Viceroy Dubai Palm Jumeirah. Following months of hard work, we are now starting to see the structure take form. We are delighted with the response from the market and are pleased to be able to show our investors that the project is progressing smoothly and ahead of target, says Kabir Mulchandani, chief executive officer of Skai Holdings.
In early June, Skai awarded Beijing-based China State Construction Engineering Corporation (CSCEC) an estimated $272m contract to build the resort. Later that month, CSCEC announced it had formed a special purpose vehicle, ASSAS, together with Skai to invest in the development of the project. The deal marks the first Middle East investment in CSCECs 61-year history.
We are pleased to announce this key milestone in the construction of this ambitious project. Now that the enabling and piling works are nearing completion, we can push ahead with the main structural work, which puts us on target to complete by 2016, says Yu Tao, president and CEO of CSCEC, Middle East.