MAG to develop AED 800 million Healthcare City project
MOU signed for Joint Venture development with Dubai Healthcare City at Arab Health expo
Dubai-based MAG Group has signed a joint venture (JV) agreement with Dubai Healthcare City to develop approximately one million square feet mixed-use project in Dubai Healthcare City at an estimated cost of around AED 800 million.
The development which is still at the concept design stage is expected to include two hospitals covering a total of 260,000 square feet, plus an 80,000 square feet clinic; a residential complex of four buildings with combined gross floor area of 430,000 square feet; a hotel apartment with a gross floor area of 80,000 square feet and 100,000 square feet of retail space.
The development will also include a mosque and one of the most advanced automated
car parks and extensive hard and soft landscaping. It is envisaged that the
whole project will be completed by the end of 2016.
Addressing officials from DHCC, Moafaq Al Gaddah, Chairman of MAG Group said, “The healthcare sector in Dubai is on the cusp of a sustained period of growth and will need to build medical facilities for the future. This expansion is being fuelled by numerous factors.
“First the natural growth in the local population and in the number of expatriate arrivals as the economy expands, looking ahead to Expo 2020. Two, the growth of private health insurance due to changes in government employment policy and Dubai’s growing status as a medical tourism hub for the Middle East,” he added.
The feasibility of the project needs little explanation. According to the DHA, total inpatient visits to healthcare centres grew by a CAGR of 9%, between 2006 and 2011 totalling 183,000 visits in 2011. By that time almost 57% of all inpatient facilities were in private hands, as inpatient visits to private healthcare centres grew by a CAGR of 18% over the same period and a clear sign of changing preferences in Dubai.
It is a similar picture for outpatient care. Outpatient visits to private healthcare centres grew by a CAGR of 8% between 2006 and 2011. The private sector now dominates outpatient care, with 73% of all outpatient visits in 2011.
Underscoring MAG Group’s commitment to Dubai, the Healthcare City project announcement comes hard on the heels of MAG Group’s recent flurry of announcements at Cityscape Global last year.
At the show, MAG Group unveiled a quartet of new Dubai freehold residential and retail leasing projects. These included an AED 2 billion development in Meydan, consisting of residential townhouses and low-rise apartment buildings and an AED 450 million retail area specialising in interior design and decorative products. Located in the emerging suburb of Al Barsha 2 and branded the ‘Art Center’, it is scheduled for handover in 2015.
Photo caption: The development which is still at the concept design stage is expected to include two hospitals covering a total of 260,000 square feet.
About the MAG Group
The Dubai-based Moafaq Al Gaddah Group of Companies (MAG Group) was established in 1978 and has grown into a multinational organisation with 18 offices in eight countries throughout Europe, the Middle East and Asia.
MAG Group Properties currently has a portfolio of nine completed and active projects in the emirate of Dubai. Completed properties include MAG214, MAG218, Industrial Area 18, Emirates Financial Towers and MAG Hotel Apartments. A total of four projects are currently under development including MAG220 in Business Bay, the Polo Townhouses and Diamond Business Park at Mohammed Bin Rashid City, and the Art Center in Al Barsha 2.