Dubai developer AHS Properties plans to convert the Shangri-La Dubai hotel on Sheikh Zayed Road into a $1.3 billion office development, its founder and chief executive, Abbas Sajwani, said on Tuesday.
The project, to be called AHS Twin Towers, is expected to be completed in 2028, Sajwani told Gulf Business. Bloomberg also reported the $1.3 billion conversion plan on Tuesday.
AHS Properties bought the hotel for AED1.1 billion in June. Sajwani said more than 30% of the office space had already been booked.
“There’s a huge demand in Dubai right now,” Sajwani said, adding that office occupancy rates in the city were above 95%. “The yield in the offices is excellent.”
The building will have a ground floor and 49 upper floors, according to the company. Full floors will measure about 16,000 square feet, and half floors will also be offered. Plans include more than 30,000 square feet of wellness and fitness facilities, more than 12,000 square feet of dining space and more than 1,000 parking spaces.
Architecture firm Gensler is designing the project, with interiors by AHS Atelier, the developer’s in-house design studio.
The conversion extends AHS Properties’ push into commercial real estate after the developer built its name in Dubai’s luxury residential market. Its first Grade A office project, AHS Tower, sold out for more than $700 million during development, according to the company.
Sajwani said AHS would keep its investment focused on Dubai, particularly on Sheikh Zayed Road and premium commercial projects, alongside its residential portfolio.
