Macy’s and Bloomingdale’s, two of the biggest department stores in the US, are planning to set up shop at the capital’s Al Maryah Island by 2018.
Shoppers will have plenty of retail space to explore with Macy’s offering 205,000 square feet and Bloomingdale’s 230,000 sq ft, which will be bigger than the current shop in The Dubai Mall. The opening of a Macy’s marks the first shop outside the US and the department store’s first entry into the region.
Gulf Related, a partnership between the Abu Dhabi-based private equity house Gulf Capital and the US real estate investment firm Related Companies, have joined hands with the local retail conglomerate Al Tayer.
The deal is a commitment to lease 520,000 square feet, which amounts to about a third of the total leasable space of Al Maryah Central.
“With the new extension, both Macy’s and Bloomingdale’s will consist of four levels each and there will be a parking extension that goes straight into the third floor,” said Kenneth Himmel, co-managing partner of Gulf Related and head of the real estate development side of the project.
Al Maryah Central is a new extension of The Galleria, that will be connected to the shopping centre via a bridge. Equity raised for the US$1 billion development was made by Gulf Capital. The extension will also include a new hotel and residential towers, bringing the total value of the project at $1.1bn. The operator of the new hotel, which will sit alongside the Rosewood and Four Seasons, will be confirmed by November.
Gulf Capital is planning an initial public offering to raise capital and expand on the UAE’s thriving retail sector after Dubai’s Emaar Properties hived off its shopping mall unit in a public share sale.
Gulf Capital has appointed Bank of America Merrill Lynch as lead arranger and book runner to spearhead the private equity firm's IPO, sources told The National in August. National Bank of Abu Dhabi will assist the US lender by distributing the IPO locally as co-arranger, the sources said.
Emaar Properties spun off Dubai Mall, the world’s biggest shopping centre, for US$1.6 billion. The public share sale was 36 times oversubscribed.
The Dubai property developer said it planned to distribute some of the cash raised as dividends for its shareholders. Mohammed Alabbar, chairman of Emaar Properties, on Monday said the IPO of its hotels unit was moving swiftly and the IPO of its Egyptian unit is planned for next year in June.
Shares of Emaar Malls Group have advanced almost 9 per cent since their debut on the Dubai Financial Market on October 1.
“I think it’s straightforward. What was missing in the UAE equity market is investment in these sectors that provide access to the most interesting and integral part of the economy,” said Sebastien Henin, head of asset management at The National Investor, an Abu Dhabi- based investment bank.
Fashionistas were enthusiastic about the arrival on the two must-see stores for tourists visiting New York.
“I love Bloomingdale’s because of the options and the brands that are not readily available in the UAE are sold there, especially in evening wear and jeans,” said Noor Badri, a 23-year-old British female living in Abu Dhabi. “Macy’s also carries a lot of brands that are not available here and also has a great cosmetics section.”
Madonna Morgan, owner of the Abu Dhabi luxury retail boutique Maison Sez, agreed with the need for the big brands to come to the capital. “The sooner the better, with all the advancement and hype of Abu Dhabi worldwide and it’s place on the map, it’s pretty important for us to have such brands. You can’t visit New York and not go to Bloomies, soon it will be the same with Abu Dhabi.”
halsayegh@thenational.ae
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