Page 72 - Magazine June 2022

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The Man with the Midas Touch:
Gone in 60 Seconds
Contractors News Magazine chats up with
Mr.Rizwan Sajan- Chairman and Founder of
Danube Group- about his latest projects of
Danube Properties and their outright sell out
on Day 1 of their launch
Running a diversified business conglomerate could be in our properties.
complicated and comes with its share of challenges. It is a classic case of making the right product, at the
However, Mr Rizwan Sajan, Founder Chairman of the right location, at the right time, at the right price and
US$1.5 billion turnover Danube Group, always wears with the right payment plan! But how?
a smile on his face, regardless of the situation. “What does a family want in their homes? Convenience,
He manages this huge business with a team of luxury, more living space per square metres? At
4,000 employees, split into a number of sub-teams GEMZ, we have added 30 luxury amenities, including
and groups based on their well-defined roles and a swimming pool within the apartment – what else
responsibilities with transparency and accountability could a home owner bargain for?” Rizwan Sajan,
firmly built into the system. Founder of Danube Group asks.
He recently launched GEMZ – a Dh350 million “Apartments in GEMZ have more amenities than those
residential project that will deliver 270 apartments – in luxury villas. So, when you deliver more facilities
that was sold out in a few hours, that more likely felt and amenities at an affordable apartment for as low
like the famous action movie: Gone in 60 Seconds! as Dh550,000 – who wouldn’t want to buy? Besides,
It did not happen by accident, but due to careful these homes come at the right location, right quality,
planning. It is Danube Properties’ 17th project and fully furnished and with the right payment plan. It is a
one of the few projects that was sold out on day 1 of buyer’s dream. Hence it was sold out in a few hours!”
the launch. This also happened with the developer’s After entering the real estate business, Danube
first project, Dreamz by Danube Properties, in June Properties changed a few things that has not only
2014. All the townhouses released at launch were developed a positive perception of the developer,
sold out in a few hours! but also changed the popular perception about real
In an economic sector where delay in delivery estate projects – quality, price and delivery.
of homes has been a chronic problem, Danube Danube Properties has made on-time property
Properties has so far successfully delivered 4,556 delivery a priority. “When we entered this sector, we
units with a combined sales value of Dh3.63 billion had decided not to delay the project delivery. Buyers
– nearly two-thirds of the entire portfolio value. With often put their life savings into a home – their biggest
the sell-out of Gemz, Danube Properties development investment,” Rizwan Sajan explains. “So, on-time
portfolio now exceeded 8,272 units, with a combined delivery of homes has been one of the key priorities.
development value exceeding Dh5.65 billion. Then price and quality are the other two significant
Since the launch of Danube Properties in 2014, it has aspects of our business.
been consistently delivering promises to customers – “Before we entered the real estate business, the
having delivered 11 out of the announced 17 projects popular perception was that homes are not made
so far with the highest launch-to-delivery ratio – that for the middle-income group, it is for the upper
reinforces buyers’, brokers’ and investors’ confidence classes. The middle-income families had earlier been
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Contractors News
priced out and continued to remain in rented homes. his experience and insights. His life and success in
Besides, on-time delivery has been a major problem. business have become subject of books and articles
We decided to change this by introducing ‘Affordable of reference. The question, however, remains, how
Luxury’ – offering luxury homes at an affordable price does he do it and with a smile?
and with on-time delivery. “Business runs on pure logic and common sense. It
“After a project is launched and sold out, we put it in is not complicated, unless some people want to make
tendering process, appoint a contractor with a firm it complicated,” Rizwan Sajan says. “If your revenues
delivery date, then move on to the next project.” are higher than expenses, then the business runs on
The question is – how did Danube Properties do it, profit, otherwise it will incur losses – be it a grocery
without mortgage finance support? Home acquisition or running an airline – every business runs on this
is a very expensive affair for average middle-income fundamental principal.
families with fixed monthly income. “So, we devised “So, we have to constantly guard against making
a 1% monthly payment scheme, after the initial 10- losses. Three ways you can do it – either by increasing
25% down payment – that helps us to construct the revenues or by cutting costs, or doing both. So,
project – with the help of the contractors and the there is no magic in running a business or tens of
banks,” he explains. businesses. Just keep your costs lower than revenues
“In this process, we could deliver quality luxury homes – so that you make profit and contribute to the society
at an affordable price and championed affordable luxury by generating employment and by paying back to the
home segment, and successfully turned thousands of society and making it a better place!”
tenants into home-owners with their limited monthly This is the only way to make businesses agile and
income. Many of them are still paying their monthly sustainable. Danube Group has emerged stronger
instalments while living on their own homes. from every crisis it has faced during its 29-year
“This way, we have also changed the popular journey – be it Gulf War, SARS, Global Financial Crisis
perception that homes do not need to be expensive of 20082009-, Arab Spring and COVID-19 pandemic.
and the average limited-income families also can own As an entrepreneur, Mr. Rizwan Sajan has been there,
their dream homes without bank finance!” done that and had overcome all adverse situations to
His success in business could be a case study for emerge stronger, without compromising his strong
business graduates in universities, where he goes to business ethics and principles. A perfect role model
interact with students of business studies and shares for others to follow.