Gulf Construction Online - UAE green push to drive sector

Facilities Management

Raes

UAE green push to drive sector

The UAE government’s growing focus on green and sustainable buildings as a way to increase their lifespan is going to lead the way for more such projects in the region.

01 August 2009

THE increasing emphasis by the UAE government on green building regulations, competitive pricing structures, and the developers’ keenness to increase the market appeal of their projects and their changing approach to the lifecycle of projects has helped push demand for facilities management services in the UAE, with office building operator Sungwon OBO hoping to cash in on the opportunity.
Despite being a relatively new concept in the Middle East, facilities management (FM) has been steadily gaining solid ground as the region gradually adopts a new business paradigm in real estate development: building for the long-term. Partly owing to the region's unique environmental conditions, property development was viewed primarily as a short to medium-range investment, with developers targeting a lifecycle of 15 to 20 years for their building projects.
More recently, however, the industry has witnessed a change in perspective, largely because of several emerging factors. For one, the advent of advanced technology has allowed developers to utilise more durable materials and adopt more sophisticated construction techniques to significantly improve the lifecycle of their property developments.
“Developers are now focusing on long-term property development and it is easy to see this happening all over the region. For instance, look at the fast emerging skyline of Dubai: simply factoring in the extremely complex process of building these structures and their prohibitively high costs, you can be sure that these buildings are being created to last for a very long while,” says Wahid Atallah, chairman of Sungwon.
He further explains that facilities management is more than just hiring a building caretaker; it is a critical strategic investment that strengthens the core business of building owners and developers. “It’s all about maximising business value. It is not enough to just create an exceptionally strong and long-lasting facility; it must be properly maintained for it to stay perfectly fit to serve its purpose throughout its extended lifecycle."
The ongoing global financial crisis has even acted as a significant growth catalyst for the facilities management sector. According to Atallah, a growing number of building owners and developers are now adopting facility management solutions in a bid to enhance sale or rental value, streamline overall costs and ultimately cushion the impact of the economic downturn.
The UAE’s green drive is also boosting the importance of having a good facilities management structure in place.
Eric Raes, CEO of Sungwon, says: “With the UAE’s growing focus on green buildings and sustainability, both developers, and in several cases, owners of existing buildings, are keen to improve day-to-day operations in energy consumption, water use, indoor environment, and waste management. Incorporating sustainable practices in existing facilities will result in significant financial benefits in the long run, and building owners will not be burdened by the costs involved in replacing existing building systems if the improvements are made one step at a time.”
He says that in the case of new buildings, the development of truly sustainable facilities must start at the drawing board to ensure that buildings are designed to match their intended purpose, which will ultimately help cut down maintenance costs, improve building efficiency and ensure sustainability.
Recent industry reports have indicated a decline of up to 30 per cent in construction costs per square foot, a prevailing trend that has helped keep construction activities on track. The falling property prices and demand issues are bound to be short-term growth barriers for developers and real estate firms, forcing most of them to actively look for alternative resources such as facilities management solutions to drive business and enhance long-term sustainability.
“Consolidation is the key in this period of economic difficulties and facilities management solutions are important consolidating measures that definitely help developers and building owners boost business and asset value,” says Atallah.
“Although we are all facing a major economic downturn, business has actually been very healthy for Sungwon OBO as several clients are now focusing more on their long-term business prospects through Sungwon's high-quality facilities management services. Timely strategic measures such as introducing a competitive pricing structure and efficient marketing campaigns have certainly helped us overcome the ongoing economic challenges.”
The company targets growth forecast of 10 to 15 per cent for this year, predicting the UAE’s FM sector to further grow to $10 billion by 2012 from its current value estimated of between $8 to 9 billion.
Sungwon has recently signed a number of key projects as the company continues to entertain clients from a wider spectrum of industries, including a one-year renewable contract to provide exclusive facilities management services to Michigan State University (MSU) Dubai.
Other recent deals include two contracts worth a total of Dh6 million ($1.63 million) to provide facilities management services A&A Investments’ Serena Residence project and Al Duaa Residence’s Al Duaa Residence project Jumeirah Village. Sungwon will also provide consultancy services throughout the entire cycle of the developments, including the construction phase, which is expected to begin shortly.
The Sereena Residence is a 100-unit complex that will offer townhouses with private gardens and a swimming pool; one and two-bedroom apartments; and duplex apartments on the fourth floor. The Al Duaa Residence consists of 146 units with 23 studios, 95 one-bedroom apartments, 21 two-bedroom apartments and seven lofts, and includes premium amenities such as a gym, steam room, sauna and swimming pool with Jacuzzi.
Sungwon is a member of Makateb Holding, the world’s first star-rated office building operator, offering a revolutionary concept designed to enhance the working environment and deliver optimum business value to tenants.
Makateb is the first to offer in the UAE a unique rating system similar to that used in the hospitality industry that ranks the office buildings from one to five stars to reflect the facilities and services available, such as gyms, coffee shops, libraries and business centers among others. The system ensures the same level of luxury and quality services clients would expect from premium hotel operators.