Rovio Entertainment's "Angry Birds" have conquered mines, construction sites, Rio, and all four seasons, which is why the colorful birds will leave this planet and take their slings and fury to space. On Friday, Rovio announced its newest addition to the Angry Birds franchise, "Angry Birds Space," which will launch on March 22.

"It's going to be the biggest game launch since the original Angry Birds!" Rovio said in a company blog post. "Angry Birds Space is a completely new game with innovative new gameplay, but with some of the familiar Angry Birds elements that fans already know and love -- plus some surprises!"

Rovio says it will release more information about the game in early March, but come the 22nd, the company will be launching its galactic game across several different verticals, including mobile gaming, retail, publishing, and animation. The game's tagline reads, "It's one small fling for a bird, one quantum leap for birdkind."

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"Not only is this a first for us as an integrated entertainment company, but the first time this has ever been done for a mobile game!" Rovio said.

Angry Birds has already released a trailer to tease the new game. The game's tagline reads, "It's one small fling for a bird, one quantum leap for birdkind."

For those who have never played Angry Birds, the game is simple: players use a slingshot to launch multi-colored birds at structures populated by evil green pigs. Players must eliminate all of the pigs from each level before moving on. There are currently three different iterations of the game, including the original 'Angry Birds,' the holiday-themed 'Angry Birds Seasons,' and 'Angry Birds Rio,' which was released as a promotional tie-in with the 20th Century Fox animated film "Rio."

In November, Rovio's CMO Peter Vesterbacka announced that Angry Birds has become the most downloaded game of all-time and fastest-growing game in history, scoring 500 million downloads in less than two years since its December 2009 release.

"This is a fantastic landmark achievement for us, and we're extremely delighted to see such an incredible amount of people enjoying our games," said Rovio CEO Mikael Hed. "We remain committed to creating more fun experiences and bringing exceptional quality to 'Angry Birds' fans everywhere."

In December, Rovio branched out and built its first fully-branded Angry Birds game with Wonderful Pistachios, called "The Hunt for the Golden Pistachio." The game was completely playable on Wonderful's website, GetCrackin.com, and required a Google Chrome browser to play it. Users were incentivized to pummel evil green pigs and crack open pistachios for a chance to win $300,000 in prizes, which range from free pistachios to $25,000 in cash. The promotion ended on Jan. 1.

But even with four games and countless levels and collectibles, people still want more Angry Birds. The company has been growing in size to accommodate the high demand, developing a long line of Angry Birds-themed toys, apparel, accessories, board games and a cookbook. Rovio recently announced that it will open up its first Angry Birds store in Helsinki and later open up shops in China, where the brand is huge - it's Rovio's second-largest and fastest-growing market --  but most of the available merchandise there is pirated.

"We're insanely profitable," Vesterbacka said. "We are very, very profitable. We're not a publicly traded company yet but we can fund our own growth."

The brand has grown so big that Rovio recruited former Marvel Studios chairman David Maisel, producer of the "Iron Man" films, to produce a feature-length Angry Birds movie.

"Hollywood is hot for the brand," said Rovio's North American GM Andrew Stalbow. "There's a very strong focus on Angry Birds to turn it into an entertainment franchise. That's why I joined."how

Vesterbacka believes Rovio is "not ready to file for an IPO tomorrow," but sees his company going public in "maybe a year from now." Rovio most recently received $42 million in March, from investors including Accel Partners and Niklas Zennstrom's Atomico Ventures. Rovio CEO Mikael Hed said it's "very possible" the company would have another funding round before going public.

"We're still building a lot of our infrastructure, our company, our platform, everything," Vesterbacka said. "There's a lot of good discipline in having to be ready to go public."

"Angry Birds" has become the fastest growing game in history, scoring 500 million downloads in less than two years since its December 2009 release, the most for any game all-time. The game is the top rated game in 79 countries. Gamers worldwide play the game on Android and iOS devices for 300 million minutes daily, which amounts to a grand total of 200,000 years.

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Angry Birds Space: Rovio to Launch "Completely New Game" on March 22

As more jobs are created and some Americans are beginning to feel more confident about the economy, stock prices have surged across the board. While most sectors have benefited from this surge in optimism, a few of the more cyclical—and heavily beaten down—corners of the market have seen even more impressive performances to start the year. No more has this been true than in the construction segment, as investors have piled into this corner of the market thanks to solid data, reasonable valuations, and hopes for greater demand going forward.

These expectations have been further boosted by strong economic indicators relative to the construction space specifically. Recent readings on the construction spending front came in well above expectations in terms of month/month reports, while other metrics such as housing starts also posted favorable figures. Beyond these data points, investors have also seen favorable releases regarding both personal income and the ISM Non-Manufacturing Index, all the while rates have stayed low, keeping borrowing costs at a minimum for those looking to expand their operations (read Three Cyclical ETFs That Are Surging Higher).

As a result of this broadly improving economic environment, low borrowing costs, and the vast wealth of untapped capital stored up by many businesses, some are forecasting that a resurgence in the building sector could have some staying power. This could especially be true if the trends highlighted above remain strong and investors continue to pile into highly cyclical industries like construction for their equity exposure (read Three Industrial ETFs For A Manufacturing Revival).

In light of this, it may be a good idea to tilt portfolios towards the building sector, at least in the short-term. While an investment in an individual stock could be an intriguing idea, some investors may be better off seeking broad exposure to the sector via an ETF. For these investors, we have highlighted three construction ETFs that could be in prime position to benefit from this positive trend in the construction world, or at least surge if the economic climate continues to improve as we go further into 2012:

ISE Global Engineering and Construction Index Fund (FLM)

If investors are looking for a global way to play this trend, both from an engineering and construction perspective, FLM is tough to beat. The product tracks the ISE Global Engineering and construction index which focuses in on firms that are principally engaged in the production or completion of large civil and capital projects or any aspect of the engineering process. In order to weight securities, the fund uses a linear-based cap-weighted method which stops a few firms from dominating the performance of the total index. With this strategy, the fund holds just under 70 securities although it does charge investors 70 basis points a year in fees (read Three Outperforming Active ETFs).

Top holdings for FLM are Vinci SA, McDermott international (MDR), and Fluor Corp (FLR), giving the fund a heavy tilt towards industrial firms. However, the product does have a median market cap of just $2.3 billion, suggesting a smattering of mid and small caps are in the fund. In fact, mid caps make up a majority of the fund’s assets at close to two-thirds of the total. In terms of country exposure, U.S. securities make up about one-quarter of assets while Japan (19.1%), and developed Europe (44%) make up much of the rest of the fund.

Dynamic Building & Construction Portfolio (PKB)

If investors are searching for a U.S centric play on the broad sector, PKB could be the way to go. The PowerShares fund tracks the Dynamic Building & construction Intellidex which consists of 30 companies in the U.S. from those sectors. The product also utilizes a more quantitative methodology which looks to evaluate companies based on a number of investment criteria including growth, valuation, timeliness, and risk factors. This approach produces a fund that charges a net expense ratio of 63 basis points a year, after current fee waivers of 28 basis points (also read Are Telecom ETFs In Trouble?).

Current top holdings include Vulcan Materials (VMC), KBR Inc (KBR), and Home Depot (HD) suggesting that while the fund has a heavy tilt towards industrials, consumer firms make up a decent chunk as well. In fact, industrials make up about 52% of the fund while consumer discretionary (23.5%) and materials (19.2%) help to round out the fund from an industry perspective. For market capitalization exposure, the product has a definite focus on smaller firms as mid caps make up a plurality at about 40% of the fund while small and micro make up another 50% of the product, leaving just 10% for large and giant cap firms. This suggests that the fund could be more volatile than some in the sector, pushing standard deviation levels up compared to more large cap focused funds in the industrial and materials sectors.

Dow Jones U.S. Home Construction Index Fund (ITB)

For investors searching for more of a housing recovery play, ITB could be an interesting choice. The product tracks the Dow Jones U.S. Select Home Construction Index which is a broad benchmark of firms that includes companies that construct residential homes including mobile and prefab domiciles. Homebuilders make up roughly two-thirds of the total exposure, although firms in the building materials segment occupy another 19.5% while home improvement firms take up another 9% of total assets (see Five Cheaper ETFs You Probably Overlooked).

This is in stark contrast to the SPDR S&P Homebuilders ETF (XHB) as this product puts less than 30% of its assets in homebuilders, giving double digit weights to home furnishing retail and home furnishing manufacturers. As a result, ITB could be more of a pure play on construction and thus make for an intriguing play for those focused in on this corner of the market. Total holdings include 27 firms while DR Horton takes the top spot, followed closely by Lennar Corp and Pulte Group. The product charges 47 basis points a year in fees but pays out a respectable 65 basis points in dividends in 30-Day SEC Yield terms.

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Three Construction ETFs For An Economic Recovery

Adelaide may get next Australian outlet

Some of Apple's 2012 retail plans should involve New York and Florida in the US, and the city of Adelaide in Australia, according to ifoAppleStore sources. The Carousel Center mini-store in Syracuse, New York is expected to move into a larger space later this year, possibly to one currently under construction near a Clark's in the same mall. The current location is rare in not only being a mini-store, but having its partner full-sized store situated 95 miles away, in Albany. The new Carousel Center shop could be ready by mid-year.

Elsewhere in the state, the Walt Whitman outlet in Huntington Station is also expected to move to a bigger space. Where in its mall it might move isn't known, though, nor is there any kind of timeline.

In Florida the owners of the BayWalk in St. Petersburg claim to have been in "conversations" with Apple, trying to lure the company to the area. The mall was bought by new owners in September, who have promised to invest in needed renovations and upgrades. Currently there is no hint of when the BayWalk renovations will be finished, though, or when Apple might move in.

Turning to Australia, real estate industry sources say that Apple has been talking with the developer of Rundle Place in Adelaide about a possible location. The building is a four-level mall in the city center, paired with an office tower. Construction has only just begun, however, with a 2013 completion date.

by MacNN Staff

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Sources tip Apple Stores in New York, Florida, Australia

Developers who want to build a 324-unit rental housing complex with a parking garage and 10,000 square feet of retail space received preliminary approval for bonds in an amount not to exceed $60 million from the Industrial Development Board today. The proposed complex would take shape on a 14-acre tract near Federal City in Algiers.

The IDB is the public body that considers requests for tax breaks and bond financing for development projects in New Orleans. Preliminary approval allows the developers to begin shopping the bonds to investors. But the project would need final approval from the Industrial Development Board and the approval of the State Bond Commission before it would move forward to the construction phase.

U/K/I Development LLC of Washington, D.C. and J.S. Karlton Inc. of Aventura, Fla., together doing business as Algiers Crossing, would like to build the housing site at the corner of Brookline Avenue and Slidell Street. The apartments would be mixed-income units, a majority of which would be rented at market rate.

The $66 million development would employ 535 people during construction and 26 people permanently. Provided it can be financed, the project would be completed in the first quarter of 2014.

Although board members gave unanimous approval to the preliminary bond issuance, many expressed reservations about the project because they said it didn't provide sufficient detail regarding how much money the developers themselves were investing in their proposal.

Steve Abdo, one of three developers who appeared before the board on behalf of the project, said they expect that there will be 25 percent equity in the project, 80 percent of which will have come from the developers. 

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Algiers housing project wins preliminary bond approval

DUBLIN--(BUSINESS WIRE)--

Research and Markets (http://www.researchandmarkets.com/research/335a23/uae_building_const) has announced the addition of the "UAE Building Construction - Changing Landscapes" report to their offering.

The UAE Building Construction Industry witnessed contract awards worth an estimated US$ 8,698 million in 2011 and the industry is expected to witness building contract awards worth US$ 10,834 million in 2012.

Ventures Middle East with its vast experience on the pulse of the construction market and up to date tracking of projects across industries, analyses the changes and growth path of the tumultuous UAE Building Construction industry, its growth drivers and restraints and the factors - political, social, economic, technological, legal and regulatory and environmental that shape its growth path. The UAE Building Construction 2011-Changing Landscapes report explores the changes that have been witnessed by this industry and explores the effects of the same on the UAE building construction industry in 2011.

The report also provides in depth vital statistics on the state of the economy, contractor awards for the building construction industry and its main segments, namely, residential, commercial, retail, tourism and leisure and others (including airports, educational institutions, hospitals and miscellaneous projects) for the period 2010 to 2013 while also providing forecasts of real estate demand across the key segments of commercial, residential and retail for the years 2011 to 2015. This study would provide a complete overview and insight into the workings of the UAE building construction industry and its future outlook enabling players to identify and explore opportunities and challenges in this changing market space.

Key Topics Covered:

The UAE Building Construction Industry 2011 UAE Building Construction Market Overview -Contractor Awards and Real Estate Demand Top Clients, Consultants and Contractors and TOP Projects across the UAE building construction industry Future Outlook for the UAE Building Construction Industry

Companies Mentioned:

KEO International Consultants Architectural & Engineering Consultants, Abu Dhabi (AEC) Khatib & Alami Consolidated Engineering Company National Engineering Bureau (NEB) Sun Jin Engineering (South Korea) Mott MacDonald Dar Al Handasah Adnan Saffarini Surbana International Consultants Arcadis Gulf Ewan Architectural Engineering Consultancy W. S. Atkins Aedas, Dubai Arif & Bintoak Consulting AECOM Dimensions Engineering Consultants Brewer Smith & Brewer Gulf RMJM Woods Bagot Hellmuth Obata Kassabaum (HOK) Dewan Architects and Engineers Al Suweidi Engineering Consulting Palm & Turner Architects Al Habtoor Leighton Arabian Construction Company (ACC) And more...

For more information visit http://www.researchandmarkets.com/research/335a23/uae_building_const

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Research and Markets: UAE Building Construction - Changing Landscapes: a Comprehensive Report

Kolkata, Feb 15: 

Berger paints India Ltd on Wednesday announced its entry into construction chemicals with five products.

It has set up two separate facilities at its paints units at Rishra, near here, and at Pondicherry at a cost of around Rs 10 crore.

Soft launch

The company has begun marketing the new products in Kerala, West Bengal, Tamil Nadu, and Karnataka.

After a soft launch and stabilisation of distribution through its paints dealer network, it would go in for a nation-wide campaign.

Turnover

Berger expected to record Rs 35 crore construction chemicals retail turnover in financial year 2013, Mr Subir Bose, Managing Director of the company, said.

“We should be happy if we can register a turnover of Rs 100 crore in the first three years”, he added.

The market size of construction chemicals in the country is around Rs 2,000 crore, largely served by small and tiny units.

Four top existing players have a combined market share of 10 per cent, said Mr Avijit Roy, Chief Executive Officer of the company.

Retail segment

“But they operate mainly in the industrial project space. We would not immediately enter this area, but stick to retail segment.

The five Berger construction products include ready mixed polymer modified cement-based adhesive for tiles and a paste/powder for filling the cracks.

jayanta_mallick@thehindu.co.in

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Berger Paints to make construction chemicals

by Joe Smith

Bio | Email | Follow: @JoeSmithKGW

kgw.com

Posted on February 15, 2012 at 7:29 AM

Updated today at 7:29 AM

PORTLAND -- The Woodburn Company Stores has announced that it will expand one last time, the addition of 16 stores using up all the available construction space.

Since the popular outlet mall opened in 1999, every three to four years more stores have been added, bringing the current total to 98.

Officials said 90 percent of the 39,000 square feet of new retail space has already sold out.

Construction on the $10 million project started February 6th and should be finished by fall, creating 30 to 50 jobs during that time.

"We're 100-percent occupied in the existing phase and there are others (retailers)  who would like to be here and some great brands are heading our way. The customers demand it, so it's time to build," said Teri Sunderland, General Manger for Woodburn Company Stores.

The expansion will be a mix of many new companies to the area, including Spritz, a brand name fragrance outlet. More names of the retailers slated to take up space will be released in about a month.

Last year more than four million people visited the outlets. The mall expansion should create about 150 new retail jobs.

 

 

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Woodburn Company Stores adding 16 stores

Location was Old Salt's home before 1999 fire

February 14, 2012 2:00 AM

HAMPTON — The vacant lots on Ocean Boulevard, where the Old Salt restaurant and several other businesses used to stand, might finally become the location of a four-story, 36-unit residential condominium building with ground-floor retail space.

Property owner Ted Sanderson will go before the town's Zoning Board on Thursday, Feb. 16, to seek reapproval of more than a half dozen variances for 83, 89 and 81 Ocean Blvd. and 5 J St.

While the project was approved in 2004, the approval expired. Zoning Board member Tom McGuirk said approval is only good for two years, with a third year available if the applicant requests an extension. McGuirk, who will step down from the hearing because his restaurant and bar is an abutting property, is hopeful the long-awaited project may finally come to fruition.

"The property has been vacant for 13 summers," McGuirk said. "I'm just excited that there will once again be foot traffic down at the end of the beach."

The property became vacant after a 1999 fire destroyed the Old Salt Eating and Drinking Place and the Beachwalk Enterprises.

What is believed to have started as a trash fire at 2:40 p.m. June 16, 1999, quickly spread to engulf the restaurant and the other buildings that housed Cecile's Gift Shop, Lexie's Pizzeria, Haven's Cafe and six apartment units.

Aided by a strong westerly wind, the fire then spread to Springfield Motor Lodge.

More than 200 firefighters from 23 communities responded to the blaze, and it took more than four hours to get it under control.

The property has been used as a parking lot for the last 12 years, while the redevelopment project was put on hold because of litigation.

Abutters, led by Michael Scanlan, fought against the project, which was first to be known as the Majestic, then the Breckenridge. The case reached the state Supreme Court.

In opposing the project, Scanlan and other abutters cited the size of the complex, the impact on property values, traffic in the area and claimed the project doesn't fit the Hampton Beach master plan.

Scanlan no longer owns the abutting property.

While developers won their legal battle in 2007, construction was held up because of the struggling economy.

In the application to the Zoning Board, attorney Peter Saari, representing the developer, said the new proposed project is dramatically smaller than the old burned-down buildings and will bring in substantially more tax revenue.

Saari argued the variances are needed to make the project work. Variances being sought include relief from required lot area per dwelling, maximum stories, setbacks and parking requirements.

Saari said denying the variances could result in more years with nothing more to show at that location than a parking lot.

"We were the only abutters that didn't oppose the project the last time around," McGuirk said.

McGuirk said the developer has worked to address many of the concerns brought up by abutters in the past, including expanding the buffer between the proposed project and neighboring properties.

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Condos, retail space proposed for Hampton beach site

Randhurst Still Growing By RICHARD MAYER Assistant Managing Editor Journal & Topics Newspapers |

The main man in charge of redeveloping Randhurst Village in Mt. Prospect is beginning to separate himself from the project to focus on other projects regionally and nationally.

James Conroy, director of development for Casto Lifestyle Properties said since most construction at the new outdoor "lifestyle center" is complete, and the focus is shifting more toward signing leases, he is relocating elsewhere in the country to work on other Casto projects that are in early stages.

"I will stay 25%-30% involved once there are additional tenants," Conroy said.

According to Conroy, overall construction of new stores, buildings and parking areas at Randhurst is 85% complete. He expects remaining portions to wrap up by June.

He said leasing the remaining empty stores will be determined by the overall economy.

"If you look at Main Street from Sports Authority to Old Navy and all the way around to the center's anchor being AMC Theatre, the center is about 85% occupied, if you also consider the Hampton Inn Suites, which is expected to open mid to late March," Conroy said.

According to Conroy, main areas that are still vacant are smaller shops ranging from 2,500 sq. ft. to 5,000 sq. ft. He said there are some smaller and larger spaces that are also vacant, but very few.

Conroy said there have been some parking lot modifications completed and a more that still need plan approval such as traffic flow near Pei Wei Restaurant and Costco.

Permits, Conroy said, are close to being completed to construct a new 7,000 sq. ft. outlot building that will include a Panera restaurant with a drive-through. Panera will occupy approximately 4,000 sq. ft. of the new outlot, located just north of the existing Pei Wei restaurant with a single drive-through lane wrapping along the west side of the building parallel to Elmhurst Road. The remaining vacant space next to Panera will be retail, but is not yet announced.

With this winter so far being unseasonably warm, Conroy said the weather helped when it came to constructing PetSmart and World Market. PetSmart opened a couple weeks ago and World Market is expected to open by the last week of March or first week of April.

"Because of the good weather, we were under roof of those two stores by mid fall," Conroy said.

In recent weeks, delivery trucks clipped one of the canopies at the new Hampton Inn Suites Hotel, which is expected to open by mid March.

Conroy said the canopy is being modified and is in the process of being replaced. He added the installation of hotel furniture is starting this week.

According to Conroy, there is some interest to take over vacant office space on the second floor of Main Street in the heart of Randhurst Village.

The nearby three-floor, 550-space parking deck is being utilized more and more, Conroy said.

"I was there a few weeks ago and the entire first floor and part of the second floor was being used on a Friday night," Conroy said.

BlackFinn American Grille is expected to begin interior build out soon and should open sometime this summer. Other stores expected to open in the coming months are Menchie's Yogurt, Pigtails & Crewcuts Hair Salon for kids, and Phenix Salon Suites.

Conroy said there are four other letters of intent waiting to be finalized. He said all of those consist of retail/apparel stores.

In terms of the former Border's bookstore building at Elmhurst and Rand roads, Conroy said different concepts are being considered including tearing the existing building down and constructing restaurants in its place, or reusing the building for retail.

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Randhurst Still Growing

February 13, 2012, 11:42 PM EST

By Zainab Fattah

(Adds Dubai Mall expansion in second paragraph, Emaar chairman’s comment in ninth.)

Feb. 13 (Bloomberg) -- Dubai’s developers, battered by three years of falling prices for homes and offices, are seeking refuge in retail assets as shopping tourism powers the economy.

Emaar Properties PJSC said today it’s expanding the Dubai Mall, the world’s biggest, by 1 million square feet (92,903 square meters) as retail accounts for a growing share of the company’s income. Nakheel PJSC, the government-owned company that restructured $16.1 billion of debt last year, is adding to its Dragon Mart shopping center and trying to raise funds to build a cluster of restaurants and stores at the tip of its Palm Jumeirah artificial island.

“Most developers are looking to build recurring revenues because there are so few property sales happening right now,” said Patrick Gaffney, an analyst at HSBC Bank Middle East Ltd. “The sectors that are doing best are retail and hotels because of strong tourist arrivals.”

Dubai’s malls and shops have become more attractive after home values fell by more than 65 percent from their 2008 peak while retail sales have been rising since 2009. Developers that don’t already generate significant revenue from shopping assets will struggle to get a foothold in the market because little is being built or sold and banks are reluctant to finance any type of development in the emirate, including retail, Gaffney said.

Retail revenue in the United Arab Emirates probably increased 5.3 percent last year to 113 billion dirhams ($31 billion) Business Monitor International estimated. That will probably rise to 120 billion dirhams this year and 157 billion dirhams by 2015, it said.

Biggest Mall Owner

Majid Al Futtaim Holding LLC, the operator of Carrefour SA stores in the Middle East, is the largest owner of shopping malls in Dubai. The closely held developer this month raised $400 million selling Islamic bonds for the first time as part of a $1 billion program. Last month the company reported an 18 percent increase in revenue in its home market and said 2011 was its most successful year since being founded in 1992.

Majid Al Futtaim priced its $400 million, five-year Islamic bond, or sukuk, at a rate of 5.85 percent on Jan. 31. The yield rose 4 basis points since it started trading this month to 5.66 percent today. That compares with a yield of 7.4 percent for Emaar’s 8.5 percent Islamic notes maturing in 2016. Emaar, Dubai’s second-biggest retail operator, also builds housing and offices.

Share of Income

Emaar reported that 41 percent of revenue and 68 percent of pretax profit came from hospitality properties and leased space including shopping malls in the first nine months of last year. That compares with 24 percent of revenue and 27 percent of profit a year earlier.

“The Dubai Mall is a powerful demonstration of the competencies that Emaar has developed in retail, regarded as one of the core sectors of Dubai’s economy,” Emaar Chairman Mohamed Alabbar said in today’s statement.

Owning the Dubai Mall, with rentable space equivalent to 50 football fields, also helped the company when it used the asset as collateral to refinance 3.6 billion dirhams of debt at a lower price. The expansion announced today will lift the total size of the development to more than 13 million square feet.

Retailers including American Eagle Outfitters Inc., Limited Brands Inc. and luxury watch seller Rivoli Group are opening shops in Dubai as consumer confidence rises. Macy’s Inc., the second-biggest U.S. department-store company, in January 2010 chose the Dubai Mall to open its first Bloomingdale’s store outside its home market.

Left Out

Prospects aren’t as bright for developers that haven’t built up retail assets. Union Properties PJSC, which is mainly focused on homes and offices, this month reported a full-year loss of 1.57 billion dirhams. The company in January handed over ownership of properties including some in Limestone and The Index to settle 1.1 billion dirhams of debt.

Deyaar Development PJSC, partly owned by Dubai Islamic Bank PJSC, has 234 million dirhams of debt coming due this year, compared with about 37.7 million dirhams of profit in 2011. The company had a loss of 2.9 billion dirhams the previous year.

“Even though retail is generally strong, especially at the large malls, we don’t expect many developers to build new ones because funding is tough and there is already a good amount of supply in the market,” Gaffney said. “The areas that will do best are smaller strip malls or supermarkets near housing developments.”

Boost to Economy

Shopping accounted for about 30 percent of Dubai’s gross domestic product last year, Standard Chartered Bank Plc economist Philippe Dauba-Pantanacce estimated. The Dubai Statistics Center said retail and wholesale trade rose by 9.3 percent and hotels and restaurants increased by 4.4 percent in 2010. It hasn’t yet released figures for last year.

Nakheel is in talks with banks to raise at least 300 million dirhams for its first new project since the debt-ridden company received a government bailout in 2009. The Pointe at Palm Jumeirah, across the water from the Atlantis hotel, will include 120 restaurants, 75 shops and landscaped areas for visitors with a view of an offshore fountain.

“The retail sector is strategic for Nakheel,” Chairman Ali Rashed Lootah said at a press conference in January. He added that 60 percent of an extension to Nakheel’s Dragon Mart mall was booked by retailers within a week of its announcement. The company plans to add 1.7 million square feet of retail space and 5,000 parking spaces to the mall.

Fundraising Challenge

Even with a growing retail market, Nakheel may have difficulty raising the money after it received a government bailout and restructured debt, according to analysts including Ahmed Talhaoui, the Abu Dhabi-based head of investment and asset management at Royal Capital PJSC.

“Any issue would have to be at a very competitive yield and probably with a structure that gives some government guarantee,” Talhaoui said in a January interview.

The yield on Nakheel’s 3.8 billion-dirham, 10 percent sukuk maturing in August 2016, fell 114 basis points, or 1.14 percentage points, so far this year to 16.83 percent today, according to data compiled by Bloomberg. That compares with an average yield of 4.45 percent for U.A.E Islamic bonds on Feb. 10, the HSBC/NASDAQ Dubai UAE US Dollar Sukuk Index shows.

Emaar, which opened Burj Khalifa, the world’s tallest tower, in 2010, derived about 23 percent of its 2011 income from retail rents and is now focusing almost exclusively in Dubai on growing sales at its malls, HSBC’s Gaffney said. Tourists visiting the Burj Khalifa’s observation deck can only get there by going through the Dubai Mall.

Emaar’s Head Start

“Emaar was better positioned than others when the financial crisis hit,” said Gaffney. “They had already launched and sold so much in Dubai and didn’t have tons of unsold inventory coming on line. They also were focused on the construction of Burj Khalifa, Emaar Boulevard and Dubai Mall, rather than starting new projects.”

Malls and hotels are the main value drivers for Emaar, whose projects span the Middle East, North Africa and Asia, Ahmed Badr said in a note on Oct. 27, when he was head of Middle East property research at Credit Suisse Group AG. He now works as an equity sales specialist with the bank.

Dubai, the second-largest of seven sheikhdoms that make up the United Arab Emirates, racked up $129 billion in debt transforming itself into a tourist and trade hub. While many developments were canceled, attractions including Burj Khalifa and resort hotels like the Atlantis help bring in visitors who shop for goods that aren’t available in much of the region.

Locals and Foreigners

“The local population is wealthy enough to be able to keep buying and the tourism growth was very strong in Dubai last year,” said David Macadam, head of retail for the Middle East and North Africa at Jones Lang LaSalle Inc. He said Dubai shopping is bolstered by visitors from the Gulf region, Europe, China, the Indian subcontinent and the rest of the Arab world.

Dubai hotels reported an 11 percent increase in visitors in the nine months through September compared with a year earlier, according to the Department of Tourism and Commerce Marketing. Revolutions in Tunisia, Egypt and Libya and armed conflicts in Yemen and Syria mean that tourists in the region have fewer options for vacations.

Buyers spent $114 million in the first week of Dubai’s month-long shopping festival, a 53 percent increase over the year earlier period, according to Karim Beg, Visa Inc.’s head of marketing for the Middle East and North Africa.

“Our marketing efforts have reached new markets in east Asia such as China and Japan and even though this strategy started only three years ago, we have seen its fruit already,” said Laila Suhail, chief executive officer of festival organizer Dubai Events & Promotions.

Little New Space

Dubai has 2.58 million square meters (27.8 million square feet) of mall-based retail space, according to a report by property broker Jones Lang LaSalle. About 173,000 square meters will be completed in the next two years, mostly in small shopping centers or strip malls, it said.

Banks wary of real-estate lending may make an exception if the business case for a project is clear and if adequate protection is put into place, said Raj Madha, an analyst at Rasmala Investment Bank Ltd.

Union Properties sold a building in the Umm Suqeim neighborhood for more than 140 million dirhams to supermarket operator Spinneys, Chairman Khalid Bin Kalban said in June 2010. Such transactions are rare in Dubai, where developers tend to hold onto shopping assets.

Assets to Keep

“It doesn’t make sense for owners to relinquish well- performing assets such as malls, which were great source of cash even during the crisis,” said Matthew Green, head of United Arab Emirates research at real-estate broker CB Richard Ellis Group Inc. “Also, when you look at mall owners they are generally companies that don’t have a pressing need to sell. Even if they wanted to sell, it won’t be prime assets.”

Majid Al Futtaim’s Mall of the Emirates, which contains an indoor ski slope, has a 99.8 percent occupancy rate, while the developer’s Deira City Center and Mirdif City Centre have rates of 98.8 percent and 96.9 percent respectively, according to the company’s prospectus.

Dubai’s mall vacancy rate stands at 20 percent, mainly because of smaller malls with low visitor numbers. Most big international brand retailers won’t open stores in small malls as they look for the most prestigious and high profile locations, Gaffney said.

After the sheikhdom first opened up its real-estate market to foreigners in 2005, developers focused on selling homes as speculation-driven investment drove up prices.

“At the time, it made more sense to sell land and residential units because it was less risky,” HSBC’s Gaffney said. Back then, developers couldn’t determine whether the location would be valuable by the time a shopping center was built, he said.

--Editors: Ross Larsen, Andrew Blackman.

To contact the reporter on this story: Zainab Fattah in Dubai on zfattah@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net V US <Equity> UPP UH <Equity> DEYAAR UH <Equity> 840705Z UH <Equity> EMAAR UH <Equity>

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Dubai Developers Thrown Retail Lifeline as Home Sales Sink