Posted on 04/11/2016 7:16:47 AM PDT by C19fan
Emaar Properties, the same developers behind the Burj Khalifa, currently the world’s tallest building, has announced plans to build a $1 billion (£710 million) tower in Dubai that will exceed the height of the 828m (2,716 ft) record-holder.
(Excerpt) Read more at telegraph.co.uk ...
Are these buildings profitable?
This one appears to be a pure vanity project. The building is very narrow so commercial/residential space is limited if non-existent.
Looks like it just for observation. Like the Dallas Reunion tower.
All projects like this are underbudgeted and for several reasons.
The pressure to get the deals inked drives budgets and estimates DOWN into ghastly, but manageable, ideas of conceptual plans to create the illusion of commitment. They have to start somewhere that they can point to facts and data to support. But, since it has never been done, who is to say their data is wrong. The deal is made, money is paid, loans are locked in and the ball starts rolling down hill. The big money knows the key is to get the investors pregnant. Once they are far enough along, they can’t afford to stop. So the battle to survive the deal long enough to collect a return (any return) starts as soon as a shovel hits the ground.
Now and therefore, all things considered, who is paying the bill makes a difference.
Look at the bright side: These structures will beautifully surreal in 50 years after they have been abandoned and desolated by the war that is coming like a freight train at them right now.
Just another 697,000 feet to go before they become a hazard to astrogation by low Earth orbiting spacecraft.
I keep wondering if there is some connection between the destruction of the WTC and the building of all these super-skyscrapers in the middle east.
This generations’ towers of babel.
Your gas dollars at work. Think of what this country could be like if the energy dollars stayed here.
There’s definitely a different sense to the skylines of Abu Dhabi and Dubai than to the many other major cities of the world I’ve visited. Most cities seem to say “this is who we are” and represent the people that live there. The UAE seems to say “hey, look at me!” Just my impressions.
Architects don’t determine budgets alone
The construction manager petitions the architect as the owners rep for change orders for cost increases
Unless things have changed since last time I built a property from dirt up
2009
And builders or construction managers here?
In the United States, real estate must generate a profit. The Empire State building is profitable.
I think these are pure vanity projects. It’s too bad in a way that America isn’t the country with the tallest building, but our skyscrapers are for the most part built by private entrepreneurs (although IIRC the WTC was built by the Port Authority, I’m not sure of the financing setup).
America never built an SST even though Boeing had a perfectly good design ready to go. Not enough interest among the airlines. The Europeans built and flew an SST - which only the mega-rich could afford to use - and (again IIRC) it was not profitable, only flew with financial subsidies from the various governments. So it was a vanity project too. Although on that basis I guess you could say that the Apollo project was a vanity project.
This generation of the tower of babel is the NWO/EU with cultural diversity ideas. God wanted people to form separate nations.
Present and accounted for.
The numbers published for media (and often times investors) consumption is rarely the real data on mega projects (Think about the "big Dig"). I have been the Senior Project Manager on a large development project and seen how the games work. I can, and have reported, the forecasted cost of a project (usually including the latest change requests from the "owner") one week and then get a copy of the report sent to investors that does not reflect the numbers I report. They usually report lower projections than I report to them. They will make it up in VE (Value Engineering) - lol.
It is important to realize that "investors" can mean different things depending on how a deal is structured. In the Middle East, for instance, the controlling money (usually royalty) is reporting the risks and rewards to the other legally invested parties. They do not want it to be known that the project is "forecasted" to be 20% over budget before the first shovel of dirt is turned. There are companies that are invested and bad news affects stock prices, bonuses, careers, etc.
In my career, have been asked by owners to modify books and reports to them, for them, so they don't have to report bad news. It gets harry when you have to keep two sets of books and make sure the "owner" is legally bound to both.
When I do have control of the budget (as the owner of a building or development), I put gross costs out to those who need to know including TOTAL investments (land, construction, equipment, technology, etc.) so high that interested parties KNOW it's inflated on account of business confidentiality. Then the parties at risk get their own accounting of where we are. I don't play these games. That said, I do not often work with government money and not on projects of the scale in this story. (In the case of the Middle East - Royal Money equivalent)
Probably built with UAE government oil money.
They don't have to be profitable.
The buildings serve no purpose except to salve the Arab/Muslim
inferiority complex concerning their respective societies' technical and social backwardness when compared with the Western World.
#9 YES! Just like they want to build a mosques next to the WTC site with the democrats blessing.
Do you notice that these great Arab/Muslim oil money men use foreign and/or non-muslim firms, experience and technology to built all these wonderful pie in the sky phallic dreams that they have? If muslims are so great and have contributed so much to civilization, wouldn’t you think they may have muslim architectural and construction firms who could handle these projects? (do I need an irony alert here?)
And from what I have heard, most of the construction is done by foreign or imported labor, since the inbred muslim morons really only know how to tear things down, not build them up.
But as long as it make them think they look great to the rest of the world. LOL For the most part, I think the civilized world giggles politely behind their hands at the muslim pretentiousness and actual lack of any constructive abilities. Having money pumped out of the ground by non-muslim oil companies (using non-muslim technologies) isn’t really much of an indication of ability or intelligence.
And they’re planning on being profitable from increasing tourism. It will be interesting to see how that happens after the first idjit muslim terrorist attack on any of the purty looking phallic symbols. Who’s gonna want to be at 1000+ feet in one when some crazed muslim from some splinter muslim group decides to blow it up as their “statement”.
Yeah, I can see a tremendous increase in tourism in their future. Ha! You betcha. Looks like Egypt’s tourism industry isn’t doing as well as it has in the past. Nobody’s gonna want to take their chances of dying by going somewhere. Staying home is at least marginally safer. And less costly.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.