Germany's ICT to launch fund for Ajman project

International Capital Trust (ICT), a German investment fund, will soon launch Ajman ICT Fund II to raise €10 million (Dh55m) to develop six residential towers in Ajman, a top company executive said yesterday.

"We recently got approval from the German Finance Ministry to launch another fund to raise €10m. We will use it to develop six towers in Ajman, worth Dh1.2 billion sales value, over a four year period," Dirk Sassen, shareholder and founder of ICT, told Emirates Business.

The company's first fund raised €5m, which was used to develop three residential towers in the Park View residential complex of Ajman. The towers, which have sales value of Dh600m, are being developed by High Sky Properties and will have a total built-up area of 65,400 square metres with 1,140 studio, one- and two-bedroom apartments.

Aliya Contracting Company has been appointed as the main contractor's for the project. "We have completed leveling of the plots and started site mobilisation. We will start construction in the first week of August."

According to Sassen, property prices have started to appreciate in Ajman following the government's announcement of setting up a new power plant and making escrow accounts mandatory for developers.

Last week, the government had signed an agreement with Malaysian Mining Corporation to build a 1,000MW power plant at a cost of $2 billion.

"Earlier, we were selling units at Dh550 per square foot, but following the announcements, we believe that prices will jump by almost Dh100."

There is huge demand for affordable housing in Ajman as rents have been rising over the years in the UAE. Middle-income people are looking at alternatives of buying house in the UAE and Ajman offers them a good opportunity, he said.

ICT has sold 50 per cent of its first three projects mostly to international investors from France, Germany, India, Pakistan and the UAE.

When asked about returns on investment, Sassen said that returns have been in the range of 20 per cent per year, which are high compared to returns of five to 10 per cent in Germany.

ICT is planning to launch another fund to finance a quarry crusher plant. "We haven't decided where to set up the plant, but it could come in Ras Al Khaimah or Oman," he said.

Source: http://www.business24-7.ae, dated 23rd July

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