Taiwan developer Farglory resumes $1 bln Abu Dhabi project

Farglory Land Development

01/09/2016 11:06

ABU DHABI, Sept 1 (Reuters) - Farglory Land  5522.TW  has 
resumed work on a delayed $1 billion real estate project in Abu 
Dhabi and now expects to complete the development's first phase 
in 2018, two years later than originally planned, a senior 
company executive said on Thursday. 
    The resumption of the project at Al Maryah island comes as 
Abu Dhabi invests billions of dollars in tourism, real estate 
and industry to diversify its economy away from an oil industry 
hit by a protracted drop in crude prices. 
    Developer Farglory Land, part of Taiwanese conglomerate 
Farglory Group, first announced the luxurious residential 
project in Abu Dhabi's financial free zone in 2013, saying the 
first phase would be ready by 2016.  
    However, prices in Abu Dhabi's property sector have since 
fluctuated significantly, first jumping steeply before 
retreating as the fall in oil prices hit government spending and 
forced thousands of layoffs at the emirate's state-owned 
businesses and oil companies.  urn:newsml:reuters.com:*:nL5N18H2LL 
    "The delay was because of global volatility. As developers, 
we had to see market sentiment," Jack Hu, managing director of 
Farglory Middle East, told reporters. 
    "We looked at the market carefully and have now repositioned 
the product mix." 
    The project will now comprise four towers with a mix of 
residential and commercial space. The first project will be a 
29-storey residential complex. United Arab Emirates-based Al 
Fara'a Group is the main contractor for the project. 
    About 10 percent of the 220 apartments have been sold, with 
nearly half the buyers coming from Gulf countries, Hu said. 
    The remaining phases are scheduled for completion in 2022, 
depending on market conditions. 
    "We are taking a long-term view of Al Maryah island, it is 
the future of Abu Dhabi, the economic generator as Abu Dhabi 
diversifies into a non-oil economy," Hu said. 
     
 
 (Reporting by Stanley Carvalho; Editing by David Goodman) 
 ((stanley.carvalho@thomsonreuters.com; + 9712 6444431; Reuters 
Messaging: stanley.carvalho.thomsonreuters.com@reuters.net)) 
 
Keywords: EMIRATES PROPERTY/FARGLORY