Laguna Laguna Tower Dubai Construction Update

January 2007

IFA Hotels & Resorts would like to take this opportunity to wish all our clients a very happy New Year and we extend our warmest wishes to both you and your families. Now that life has returned to normal after the holidays and festivities, we are pleased to provide a project update following up from our last newsletter issued September 2006.

As you may recall, in our last communication we reported that the piling & shoring permit was issued and works are now well underway and aligned to key project milestone dates. In December, the main structure / building permit was officially issued by Jebel Ali Free Zone Authority (Jafza) paving the way for a seem-less hand over to the contractor. Piling and shoring was completed in early December then main contractor took over and commenced with excavation and pile cutting. We expect this work to be complete by the end of January and ground slab and retaining walls construction will proceed thereafter.

The management of Laguna Tower and Movenpick Hotel & Residence Laguna Tower Dubai have awarded a main contract to joint venture partners ‘Test-Ranya-China-State Joint Venture’ who are already mobilized on site. You may wish to visit their website http://www.cscec.com.cn/english/work.htm With the enabling works complete and the dewatering process underway, we are now well on track to start bringing the structure out of the ground.

As you will appreciate, substantial in-ground works had to be undertaken to complete the substructure and basement works prior to the super structure rising past ground floor and upwards. China State, one of the world’s largest construction companies with vast high rise experience, has been charged with construction and management of the main structural works, to ensure construction proceeds as set out in the programme.

The Laguna Tower / Movenpick Hotel & Residence Laguna Tower Dubai site setup is virtually complete with site hoarding and offices already in place. IFA Hotels & Resorts (IFA HR) will have a full time representative on site from January onwards overseeing the management and construction of the works. This will no doubt be great news to all our clients as it will enable IFA HR to communicate the latest construction updates “hot off the press”. We look forward to issuing photos and client updates just as soon as we have news to share with you and we’re hoping to introduce project information via our website in the future for your convenience.

IFA HR is currently in the process of building an off- site full scale mock up Laguna Tower studio apartment as well as a completed hotel room for the purpose of approving materials and finishes. Once the model has received executive approval and is signed off by IFA HR and the hotel operator (Movenpick Hotels & Resorts), these rooms will be made available to our Sales department for client viewing. Clients wishing to view the model rooms may do so by contacting our Sales Executives to schedule a date and time.

We hope to offer this service to all clients by early March following completion of the necessary inspections and approvals. We are really excited about this latest initiative as it will almost certainly bring the project to life. Additionally, it will allow you to experience first hand the look, feel, quality and standard of your investment reinforcing our commitment to providing a quality product.

With the construction and hard finishes almost completed, we are currently waiting for delivery of the sanitary, tiling and furniture samples from Europe and the USA.

IFA HR, like many other major developers, accept there has been challenges due to a shortage of professional, quality subcontractors and suppliers within the Dubai market, such as mechanical, electrical and plumbing (MEP) contractors, curtain walling and glass manufacturers, joinery companies, etc. Nevertheless, we have the added advantage of contracting one of the few joint venture consortiums who perform these works in-house, working in partnership with sister companies. Drake and Skull will carry out the MEP works ensuring that one of Dubai’s elite international electro mechanical companies is on board with us for this superb project.

Over the next few weeks we will see the completion of boundary hoardings as well as the main contractor and consultant office construction. This would generally take over one month to mobilize however we were able to start the works on day 1 and claw back time. Now that everyone is on board and all key stakeholders are in place, the development will progress at pace and we look forward to keeping you updated. Information will be made available via the Client Relationship Management Department just as soon as we have more details to share with you.

We are still on track to complete the project within the long stop date in your Sale and Purchase agreement and as a premium developer it is our first priority to ensure we deliver a quality product that is amongst Dubai’s leading properties. We appreciate that investors are keen to receive their properties on the earliest possible occupation date and it is in the best interest of the Management of Movenpick Laguna Tower to ensure we pursue this on your behalf.