(Bloomberg) -- Nick Candy, one half of the sibling duo behind London’s One Hyde Park development, is turning his attentions to the Middle East and promising to set new benchmarks for luxury in a region that’s already well known for its opulence.
Candy Capital has formed a joint venture with Abu Dhabi-based Modon Holding PSC and plans to build a series of projects in the Middle East and North Africa, focusing on homes but also including hotels and offices. The joint venture will build on Modon’s development pipeline as well as sites currently owned by Candy.
The new developments will aim to have the best architecture, design, services and attention to detail, said Candy, pointing to the track record at One Hyde Park in London’s Knightsbridge district, which repeatedly set new price records in the UK capital.
“I was the first to break the £1,000 per sq ft mark in London, then the £2000 per sq ft, and then £10,000 per sq ft. I can move the market,” he said in an interview, adding that some so-called luxury real estate in the Middle East is nothing more than “mid-market house builder quality.”
The UAE’s housing market, and Dubai in particular, has been booming since Russia’s invasion of Ukraine and an influx of hedge funds sent demand soaring. Dubai recorded 282 home sales valued at least $10 million in the first nine months of this year with the man-made island of Palm Jumeirah claiming the biggest share, according to property consultant Knight Frank LLP. There were just 23 such transactions in 2019 before surging to 431 sales last year.
“Developers are racing to satisfy demand for $10 million plus homes,” said Faisal Durrani, a partner at Knight Frank.
It’s an abrupt shift from much of the past decade, when Dubai property slumped for about seven years even as cities like London and New York saw prices surge in the low interest rate era.
Relative Value
Overall, the region also remains cheap by comparison to other super prime markets, according to Candy who is betting the UAE will be a major winner as more of the world’s wealthy are lured by its modern infrastructure and low tax and crime rates. Earlier this year, property consultancy Savills said the region is competitively priced by global standards. It’s also more likely to attract more millionaires than anywhere in the world this year, according to the Henley Private Migration Report.
Modon is an Abu Dhabi-listed firm, previously known as Q Holding, with a market value of more than $15 billion. The firm counts sovereign wealth fund ADQ and the UAE’s largest listed firm International Holding Co. — both part of an empire overseen by Sheikh Tahnoon bin Zayed — as its biggest shareholders.
According to its website, Modon is developing projects on the emirate’s Hudayriyat and Reem islands in Abu Dhabi. The emirate is also pouring billions into building sprawling residential projects to attract rich expatriates to live and work there. Last week, Modon was appointed as the master developer of a large plan to develop a city at Ras El Hekma on Egypt’s north coast.
While Candy made his name developing One Hyde Park alongside his brother Christian, the pair have since parted ways. More recently Nick has focused on his interior design and development management business Candy London, which has undertaken smaller-scale projects in London, New York, Los Angeles and elsewhere.
The tie-up with Modon will represent the largest development Candy has been involved in since One Hyde Park, he said, without providing specific details on the first developments the venture will pursue.
--With assistance from Adveith Nair and Philip Tabuas.
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