Indeed, what is there to think long. I bought an island somewhere in the vast oceans and “chew coconuts, eat bananas”, as in an old children's song ... Once it seemed like a dream - to become the owner of your own island and live on it like Robinson Crusoe. But, as they say, everything flows, everything changes, and the idea of acquiring a piece of land, surrounded on all sides by the blue sea, today seems not so unrealizable.
Dubai in this sense belongs to the palm, and not at all because the UAE state is located on a peninsula whose coastal waters are banned by hundreds of deserted and barren islands, but because this emirate began to build incredible man-made islands with a distant eye for the development of international tourism, business, trade in a new integrated world. One of the most exotic projects was the artificial archipelago of The World ("World"), which immediately attracted the attention of foreign investors. However, there was also a Russian trace.
- Hello, and let's get acquainted. We know that your company is engaged in real estate in Dubai and beyond. How did you become one of the investors on the Mir archipelago?
- First of all, let me introduce myself. My name is Gafur Berzov. I am the chairman of the board of Perseus Property, as well as its main shareholder. Our company is a development company that deals not only with commercial real estate, but also builds multifunctional resort complexes with shops, restaurants, entertainment centers in different countries.
- When was your company created?
- Perseus Property was established three years ago. We were one of the first to invest in such a famous Dubai project today as the Mir archipelago.
- You started your business with the Emirates?
- Not really. I started with exporting wood to Spain, even before I graduated from college. Then I moved to Canada, where I received a master's degree in information technology. I am such a person that everything that I do should be pleasant to me, whether it is study or work. After about a year of study, I realized that information technology is not quite what I want. So I moved to London, where I began to study economics and finance, as well as mathematics. And I realized that this is exactly the direction that I like. My education in London allowed me to get acquainted with various financial markets and instruments, such as foreign exchange trading, insurance services, real estate and so on. And from there I began my acquaintance with Europe, and also for the first time I thought about working with the Emirates.
- You considered the Emirates a more attractive place for a financier than other countries?
- In general, yes. Even today, the Emirates retain their potential and investment attractiveness, but a couple of years ago the opportunities here were more ambitious, from my point of view. I can’t say that the pace of market development is slowing down, on the contrary, the Dubai market continues to grow, but not as fast as it was in the recent past, when the construction boom was just beginning.
- In your opinion, how long will the UAE remain an attractive investment market? Maybe for you personally?
- To be honest, I think that Dubai will continue its growth and development. Today, a huge number of housing facilities are being built here and, it seems to me, housing prices here will constantly go up. In my opinion, retail and commercial real estate has great potential, as today there is a clear shortage of commercial space in Dubai. And after this emirate, the neighboring ones are also pulling up, in which many projects that are attractive for investment are being built today.
- But the project that you own on the Mir archipelago is not commercial.
- The man-made archipelago Mir attracted my attention, primarily because it is an exclusive project. The island on the "World" can not be purchased by anyone. The general developer of this project - the company Nakheel - itself sends out proposals to selected investors for the acquisition of property on the Mir archipelago. This archipelago, although it is part of Dubai, is still located in the Persian Gulf, four kilometers from the mainland.
Secondly, this is a very competitive project. I can judge this, because I participate in various investment real estate projects around the world, for example, in the Seychelles, Maldives, in Monaco. Of course, this Dubai project differs from the ones I have named and quite strongly. It will be impossible to get to the Mir archipelago from Dubai by land, only by water or by helicopter. The islands will not have cars, that golf cart, you can get to the neighbors by ferry, boat or yacht. This is an offshore project with absolute and unconditional ownership (freehold). In addition, it differs from the "palm islands", which can be reached by bridges that are thrown from the mainland to the "trunks". Dubai generally offers unique projects of its kind, which are now well known in all countries of the world.
- Agree with you. The Mir project is exclusive and unique. But on the other hand, it is so unique that many do not know what it will be and what to expect from it. Don't you think that investors are risking in some way by investing money in it?
- It depends on what kind of risks we are talking about.
- Well, many people think that man-made islands, for example, are not very stable. They can be washed away and so on.
- For Dubai, this is not the first experience in creating man-made islands. The famous Burj Al Arab hotel is located on an alluvial island, port facilities in the Jebel Ali Free Economic Zone are also man-made islands. In addition, this experience has long been widely used in the world, especially by states that cannot boast large territories. Take, for example, Tokyo International Airport, which is also located on an artificially created island. So today we can’t talk about the instability of the Dubai islands. Before these projects were started, their creators did a great preliminary work, studied sea currents, and took soil samples. And do not hesitate, Dubai has attracted the best specialists in the world to this research. Here, all key factors were taken into account, from global warming to the study of seismic activity of the oceans.
Starting our own project on the Mir archipelago, we also followed in the same direction with its general developer, Nakheel, providing all the necessary documents before starting any work on each of our islands. All island owners follow the same rules.
- Given that the creation of the islands is a long process, let me ask you when it is expected to be completed?
- The end date for the creation of the archipelago in the Nakheel documents is designated as the first quarter of 2010. And I am very optimistic in the forecasts, since I believe that everything will be done on time. My two islands, by the way, will be one of the first to be completed.
“Wouldn't that be a problem?” After all, everything will be completed with you, and will the neighboring islands be washed up at full speed?
- I do not think that the construction surrounding me will greatly interfere. The closest island to mine will be at a distance of 60-70 meters. There are islands that are more than 100 meters apart. And one more important moment, if you saw a map of the archipelago, you could notice where most of the islands were sold - in its center. Our islands are located in the so-called "surrounding zone", which is in the upper part of the "World", so that we are more isolated from other owners, and our neighbors are not a hindrance.
In addition, it is not necessary to discount that there are many restrictions on the height and purpose of the buildings that will be built on the islands of the World. Initially, it was assumed that each of the islands would be completely private, autonomous and with its own infrastructure. A year later, it was announced that two years after the washing up of all the islands, all necessary communications will be connected to them - water, electricity, telecommunications, and so on. But since we were one of the first customers, we took this into account and put the installation of electric generators in our business plan. Moreover, their power allows us to safely serve an additional two or three islands. By the way, the islands in the Mir archipelago today are divided into four categories: the first is private property; the second - islands, which will be built resorts and hotel complexes, the third - islands for housing and the fourth - islands, which will house shops, restaurants, entertainment centers and so on.
- What distinguishes your islands from the neighboring ones? Why did you initially choose them?
- Firstly, I liked their location. Our islands are at the end of the canal, where the depth is the largest on the archipelago, which allows us to design our own harbors where yachts up to 50 feet in length can be moored. On our islands we will build a hotel, apartments, all kinds of restaurants - both vegetarian and seafood, and so on. All real estate that we will sell is holiday oriented and can be acquired on the basis of timeshare principles. We will have built palace-type buildings, as well as modern condominiums. That is, if you wish, you can purchase apartments with guaranteed use for 30 days a year, which will be managed by a well-known hotel operator. And you do not need to pay for electricity, water, repairs and other running costs.
- You said that there will be no cars on the island, but how will the “islanders” begin to move from object to object?
- In fact, golf carts will travel around the islands, but the communication between the islands will only be by boat, and this is about private boats, ferries, and water taxis. Do not think that each of the islands will have gigantic dimensions. Not. The size of one island is approximately equal to four hectares. So, if you wish, you can walk on foot.
Of course, at the initial stage, communication between islands that are far apart from each other will be difficult, since not all the infrastructure of the archipelago will be completed at once. But according to Nakheel’s plans for the final stage, there will be spacious marinas for mooring yachts, ferry stations, and somewhere even a monorail. So there is no need to talk about the complete isolation of the archipelago from the outside world.
- Do you already know which hotels you will build on your two islands?
- Now I can’t name the names of specific hotel operators under whose brands we will build resort complexes, since today we are at the stage of negotiating and signing the necessary agreements.
“But what will it be, can you tell?” Boutique hotel, exclusive resort? And who will manage it?
- This will be one large elite resort complex. I also have property on The Palm Jumeirah, which is managed by a well-known hotel operator listed on the stock exchange. So, and on the "World" we will go the same way. In addition, we carefully listen to the requirements of our potential investors - those who will rent real estate in our resort or in the condominium. That is why we are not indifferent to the reputation of the hotel chain, which will manage all our facilities.
- Will you build villas on the islands?
- No, so far it is only about approved projects, and these are buildings with apartments. Moreover, there are mandatory requirements of Nakheel to all projects and developers. For example, if I want the class of my resort to be no less than "5 stars", then the area of the smallest apartments should be at least 60 square meters.
- So, we will soon have a rest at your resort?
- Yes, and note, at the end of the construction of the Mir archipelago, getting to it by water will be much easier than by car through city traffic jams to many other famous sites in Dubai. Even it will be possible to arrive at Dubai International Airport in just half an hour - twenty minutes along the Persian Gulf and you are already in Dubai Bay, and there you are just around the corner.
“Then, see you soon on your islands.” By the way, what did you call them?
- There were several working names, but I think that one of the islands will definitely be called "Eden." So welcome to the Gardens of Eden! We guarantee paradise.
/ Interviewed by Irina Ivanova /
