Dynasty Zarooni gets clean chit

Dynasty Al Zarooni Real Estate is considering legal action against some Indian publications and those behind an alleged 'smear campaign' to malign its reputation, officials said.

The campaign has allegedly been launched by a former employee of Kabir Mulchandani, chairman of Dynasty Zarooni, who was fired for alleged 'wrongdoing', Gulf News has learnt.

Two Indian publications ran reports referring to some investors' complaint that "he [Mulchandani] had misled them by showing a different property and selling them another".

One of the reports said "Dubai's Real Estate Regulatory Authority [Rera] is probing Mulchandani's operations after nearly 30 NRIs from India, Russia and UK complained online".

Dynasty Zarooni, formed in 2005, is a joint venture between Hilal Al Zarooni and Kabir Mulchandani. The company has been engaged in developing, buying and selling residential and commercial properties to wholesale investors and cashing in on soaring prices and growing demand that fetched solid returns.

Dynasty Zarooni, having a real estate portfolio in excess of Dh20 billion, has been the target of a series of false accusations in relation to complaints from investors, with regards to their Ebony & Ivory project in Jumeirah Lakes Towers," the company said in an e-mailed statement.

The project is being developed by Al Fajer Properties, a leading property developer in the UAE, managed by its president Shaikh Maktoum Hasher Al Maktoum.

Over the past week there have been a number of internet blog stories and these culminating with a article in the Indian media, incorrectly quoting Rera officials, the company said.

The Ebony & Ivory development project is a Dh2.7 billion project, which was originally sold out within hours of its launch. "To date, the construction of all of the towers being developed by Al Fajer Properties is progressing rapidly," the statement said.

Meanwhile, the Rera has given Dynasty Zarooni a clean chit.

"Dynasty Al Zarooni Real Estate has no violations relating to the registration of property brokers until August 25, 2008," Rera said in a letter yesterday, a copy of which was obtained by Gulf News.

Hilal Al Zarooni, president of Dynasty Zarooni, told Gulf News, "We are pursuing legal action against those who are behind this campaign that is damaging our reputation.

"These imposters have not only targeted Dynasty Zarooni, but the UAE real estate market as a whole. The imposters should be brought to justice." he said.

Dynasty Zarooni looks to expand into new segments

Hitherto pre-dominantly operating as an investment company, Dynasty Zarooni is putting together three new prongs to diversify its revenue base and, at the same time, break into new market segments. The brokerage division is already up and running since the beginning of the year, and will be complemented by dedicated set-ups for handling long-term assets (primarily leased property) and structured financing deals.

First off, there will be a major expansion of the comapny's beokerage division, which will see it create a network both in-country and in Russia and London. The first link in the expanded distribution chain opened in Bur Juman which will be followed by others in Abu Dhabi, Jumeirah Lakes Towers and Shaikh Zayed Road. St. Petersburg comes on line before the year is out and London by early next.

The plans at this stage, are to have as many as 35 such outlets in the medium term, including 20 in the UAE.

 

"We project that the brokerage division will represent 25 percent of our operating profits in time, and is a perfect complement to the gains made by the investment division in the one-and-a-half years that Dynasty Zarooni has been operational." states Rajesh Gupta, the Group's Chief Financial Officer.

In terms of fit, where the investment division acquires whole buildings or portions of it and then sells on to investors, the brokerage division would conceivably lease these assets and creating a steady income flow for Dynasty Zarooni. 

"As we see it, the brokerage stock will be supplied by both our investment arm and those sold on by third-party investors," adds Nikesh Vishram, CEO.

A face that works to the company's advantage, says Alok Batra, Vice President for Sales and Marketing. "These investors  realise the finesse we have in generating sustainable income for them, which is why they would prefer if we did the post-sale management."

As such, the company currently holds Dh3.67 billion of exclusive property stocks in Dubai and Abu Dhabi. It has invested in projects totalling over Dh21 billion in the UAE, of which Dh6 billion are in Abu Dhabi, making Dynasty Zarooni one of the largest privately owned entities operating in the UAE.

With the other divisions starting to pull their weight, the company contends that the investment division's share of profitability of the total group's profits would drop to between 40 to 50 percent in the near term from the current 90 percent level.

"It makes sense to expand laterally, the status of the real estate market in Dubai and Abu Dhabi warrants that we do so." comments Gupta,. "Our return on equity is currently 440 percent on an annualised basis from the investment part of the business, and that's phenomenal by any measure. Of course, it will soften from such a level at some point, which is why having a diversified revenue stream comes in handy. We are in a situation where we can leverage the performance of the investment division to telling effect on the others. As a case in point, the brokerage division is not cash consuming, there is just the start-up investment that's required. But it will form the most stable part of the business going forward, a cash cow so to speak."

While brokerage and the rental operations conform with Dynasty Zarooni's exisiting operations, where would the structure product division - the fourth prong - fit in? "There is a global market out there that is very much looking at prospects in Dubai property," says Neeraj Sehgal, Senior Vice-President, Structured Products Division. "Mind you, there were quite a few pension funds stayed away from the events leading up to the current credit mess. These funds need channels and destinations to invest, it's not as if everyone will stay away from investing forever. We do not want to say much about our structured products initiative at this stage, but there is an opportunity to reach out to global players and get their attention onto this part of the world. Again, our decision to expand our global distribution network starting from now will help us in this regard."

Gupta believes that private funds from India would be looking at Dubai more closely in the short-term, principally because of the current softness in the property sector there. The same could be said about the investment flow from Pakistan, and Russia is also rated a strong possibility. Moreover, the investment pipeline from the UK and Europe is not going to dry up all of a sudden.

"What many investors are doing is taking an extremely short-term view of the investment possibilities at this stage, what they need is to have a 2020 view. There are certain markets that will stay attractive come what may and serious global investors realise that." adds Batra.

"Take London for instance, there is no way anyone will say that it's an 'English' city, Dubai's strengths work at the same level - our view is that there is no better place on this planet to invest at this stage than here."

For more information on Dynasty Zarooni, visit www.dynastyzarooni.com

Dynasty Zarooni - Leading the UAE Property Boom

Apart from all the property developers that we hear or talk about in UAE specially Dubai, Dynasty Zarooni is the one that stands out of all of them. The reason being their steady and consistent progress towards providing world class, luxurious and state of the art residential and commercial properties.

You'll find them on newspaper front-covers, billboards, magazines etc.

Proudly based in Jumairah Lake Towers, Dynasty Zarooni specializes in the sale of Commercial, Residential and Leisure property in Dubai and Abu Dhabi to global investors. As one of the region’s largest Property Investment Consultants they have huge leverage and buying power, giving them the ability to pass on their properties at pre-launch or wholesale prices to their clients.

Dynasty Enterprises founded in 2004 is already one of the most active firms in the real estate sector and despite being young has grown extensively within a short time. During 2006 the firm managed to sell over AED 1.5 billion worth of property

Previously only dealing with professional investors or High Net worth Individuals, who bought in bulk, they now offer property portfolio, through their International network, to small and large investors alike.

As most of their clients are particularly interested in capital growth, and they specialize in "off the plan" projects, that offer significant gains during the construction phase. These properties may often be purchased with just a deposit and are able to be re-sold prior to completion.

They take a consultative approach with their clients, listening to their particular needs, financial capabilities and goals to ensure that they recommend only the most suitable projects for them.

Their advice is available pre and post sale and welcome and promote long term relationships with our clients wherever in the world they may be.

Hilal Al Zarooni - President

“Success is a journey not a destination” is the principle of Hilal, he started his successful journey in 1999 by establishing the first Le paris Diamonds. Known for his creativity, hardwork, dedication and enthusiasm. He has also managed and delivered prestigious developments at Jumeirah Lakes Towers such as One Lake Plaza, HDS Towers and HDS Business Center. 

Kabir Mulchandani - Chairman

A seasoned entrepreneur, originating from a background in manufacturing & distributing consumer electronics across India. Established and operated Dynasty Enterprises Inc. achieving total returns of over 2000%, with net and cumulative net profits of about AED 985.87 Million since 2005.

For more information on Dynasty Zarooni and its developments, please visit their website on www.dynastyzarooni.com