The large-scale warehouse project launched by Waha Land to overcome storage limitations in the Abu Dhabi market.
As the first employee of the Abu Dhabi-based Waha Land, chief operating officer Hazem A. Al Nowais, says he is proud to see how far the company has progressed . Coming on board in October 2007, his early roles included building a team, establishing market credibility, and digging deep into market research and analysis. “Waha Land started as an idea, and today is a reality,” he says. “To see it come to life is amazing.”
With the full support of the Abu Dhabi government behind it, Waha Land’s first venture will be developing a prime six square kilometre plot of land earmarked as a mixed-use development. The project, Al Markaz, is an ambitious attempt at providing much-needed warehousing and light industrial space to the Abu Dhabi market. Al Nowais says the proposed flexible multi-use design, as well as scope of the project, is ground breaking for the emirate and comes just at the right time.
“The market demand for warehouses stores and labour camps far outstrips the supply, ensuring great value in building major multi-faceted projects such as Al Markaz,” says Al Nowais
Providing a comprehensive work and living environment with modern infrastructure that addresses the needs of the industrial sector, Al Markaz will be a first of its kind in Abu Dhabi. Strategically located just 25km from the emirate, the development will be adjacent to the proposed union freight railway, allowing for direct access to the city and its ports, emirates and the rest of the GCC. Upon completetion, the development will be locally unrivaled, as the emirate is eager for more available options in the mixed-use, light industrial sector.
“We wouldn’t touch a market without research, demand analysis, case studies. You want to be sensible, look at everything with an open mind. Al Markaz comes at the right time. And is in alignment with Abu Dhabi’s strategic aspirations as envisaged in Plan Abu Dhabi 2030,” adds Al Nowais.
“Strong trade and transport connections encourage Al Markaz’s end-users to expand their geographical focus and tap into the massive potential of the Gulf market. This includes industry, which currently has an insufficient supply of multi-faceted and full- fledged real estate initiatives such as Al Markaz.”
The master plan outlines an integrated mixed-use development with premium workforce accommodation, light industrial facilities, start-up units, and larger land parcels zoned for warehousing and storage. Workforce accommodation is available to tenants of the development, or to external companies needing accommodation for staff. The project offers several unique advantages to investors and end-users.
“It will be ideal for start-ups, or small or large enterprises. Our tenants will have the ability to upgrade to larger units over time, without relocating, as the project will be adaptable to the needs of investors. The flexibility afforded differentiates this project from most,” says Al Nowais.
Indeed, when he was researching case studies of similar projects, Al Nowais looked for mixed-use developments that failed, analysing why such ventures didn’t work out. Two common themes were prevalent: First, plans were simply too rigid, not allowing for expansion (or contraction) of facilities without relocation. Second, projects lacked accessibility to established transport networks, often creating bottleneck effects. “We worked backwards,” says Al Nowais. “Our starting point was studying the failures of others. We let infrastructure govern our master plan. Once you conquer your biggest problem, everything else becomes easy.”
Designed in four phases, each taking 18-24 months to complete, ground has officially been broken on the initial Phase I. According to Al Nowais, the fact that work has commenced is proving to be a selling point at recent trade shows and exhibitions. “Believe it or not, this is a major contributor to our success. The fact ground is broken and progress is being made. Our expectations have been completely exceeded. To give you an idea, in 2009’s CityScape Abu Dhabi exhibition, it took us five days to accomplish our goals. This year we accomplished them in three,” says a beaming Al Nowais.
From the sounds of it, this project is one of the few to not just survive the economic slowdown, but one that arguably benefits under such conditions. “In 2009, we were still on the drawing board,” says Al Nowais. “So in those terms we were lucky. In 2010 we commenced sales and construction, and market conditions have worked in our favour. The lack of industrial projects is good for us. Demand is there.” Being that this is a first-of-its-kind project, surely there have been some holdups regarding zoning, approval and regulation, the proverbial red tape that all developers must work through? Al Nowais says it has not been a hindrance and thinks it actually works quite the opposite. “What might slow you down today, will save you time tomorrow,” he reasons.
Al Nowais says as a developer, he welcomes regulation and considers Abu Dhabi’s Urban Planning Council as a “breath of fresh air”’ to the local real estate market. He says the council is easily accessible, and remains open to meeting with developers to discuss available options or solutions.
“I won’t hesitate to say that they’ve quite literally been a savior to the Abu Dhabi real estate market.”
As a public company operating largely in a private sector, Al Nowais says this has placed Waha Land firmly on the map, and has come to positively affect the bottom line.
“In this market, it’s a trust issue. A public company is more transparent in operations than a private company, and this has served us well. Being listed we gain credibility and confidence,” he explains.
As for additional upcoming projects, Waha Land is looking into other government sanctioned projects, such as UAE national housing, schools and hospitals. However right now the focus remains on squarely on Al Markaz, as Al Nowais say he is not interested in becoming one of the many failed case studies he reviewed. “There is no chance that I will allow that to happen, the project has too much potential for that,” he argues.
AL MARKAZ STATISTICS
Total Site Area – 6,000,000m²
Warehouses & Storage – 1,580,000m²
Light Industrial – 500,000m²
Small Industrial – 180,000m²
Residential – 28,000 resident capacity