Above breakup +3.6% Whole building · 120 units Income approach

Cubital Heights 1

Al Furjan East (area 445) · master Al Furjan · 120 units · 26 st · 78×1BR · 12×2BR + 3 retail + car wash · ~85 000 sqft
Cubital Heights building
Whole building · 120 units
1BR 2BR Retail
Overpriced on income — bid far below
Offer 115M sits ABOVE piece-by-piece breakup 111M (+3.6%) and far above income value 90.9M (+26.5%). There is no distress here — the asset is overpriced. Income-hold gives IRR −3.4%; the deal only makes sense via a hard bargain to ~83.6M (−27%).
Package offer +3.6% vs piece-by-piece
AED 115.0M
111M worth piece-by-piece
Price held for the buyer
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reserved
for you
02

Why it's in distress — sum of parts

Sold one by one at Al Furjan medians, the 120 income units are worth ~111M. The building is offered for 115M — +3.6% ABOVE its own liquidation value. Not a discount: the whole is priced above the sum of parts, and income (section 06) doesn't cover it.

ComponentMedianQtyWorth
Worth piece-by-piece 111M
Discount captured
+3.6%
Worth 111M · offered for 115.0M — you enter ABOVE the breakup value. There is no floor under this price; the discount has to be negotiated, it isn't in the deal.
Two valuation bases. Entry priced by liquidation (111M piece-by-piece). Exit priced by income: 6.02M ÷ 6.62% cap = income value 90.9M. Both sit BELOW the 115M offer — the asset is overpriced on every base.
03

Asset income — rent

Al Furjan is a high-yield (~6.6% cap) market, but the 115M offer prices the building at only 5.24% — well below market. Seller's "stabilized 8.84M" is inflated; our market reversion caps at 8.14M gross. Occupancy 88% (14 vacant) adds lease-up execution risk.

NET rent by year · base +3% · stabilized 95% AED / year
7.38M gross stab. / yr
−1.36M service charge
6.02M net year 1
Net yield on offer
5.24%
net 6.02M ÷ offer 115.0M — cap far below market 6.62%
Residential + retail (stab. 95%)7.38M
Occupancy · 14 vacant88%
Gross (stabilized)7.38M
− Service charge (Mollak)−1.36M
04

Full entry — all costs

Offer price115.00M
DLD transfer 4% + agent 2.1%+7.02M
Trustee + title (120 × 4 450)+0.53M
Full entry 122.55M AED
Actual amount payable

Offer 115.0M + 7.55M costs (4% DLD, 2.1% agent, trustee & title on each of 120 units) = 122.55M. This is the base for the IRR and exit.

06

Exit in 3 years — the roadmap

Enter in 2026, hold and collect rent, sell whole in 2029 at the market yield (7.12% base = 6.62% today + 0.5% buffer). Key problem: Al Furjan's high cap means the exit (~92M) lands far below the 122.55M full entry — capital loss in every scenario. Click any year — its exit math unfolds below.

Exit 2029 · three market scenarios
06+

Resilience — the stress test

What if it doesn't play out? We check the deal across every combination of the two risk factors: rent growth (0/3/5%) × exit-market yield (6.46/5.96/5.46%). The base case is the centre cell — everything else shows the cushion.

Loss-making on income — 0 of 9 cells clear 8%
Every one of the 9 cells is red — the best case (5% growth + market rise) reaches only +0.8%. At the offer the deal is loss-making almost everywhere. The only value path is a hard bargain to ≤83.6M (−27%).
Closing offer

Cubital Heights 1 —
bid far below offer

On the 115M offer income-hold gives −3.4% IRR — overpriced, we do not buy at ask. Offer is +3.6% ABOVE breakup 111M; the 8% floor is at ~83.6M (−27%).

Offer valid
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Allocated to private clients — this bracket typically closes before year-end.
Semyon
Semyon
Fund manager · Behomes
+971 56 133 4883
Andrei
Andrei Sviridenko
Broker · Behomes
+971 54 388 3224
Offer 115M · overpriced on income
AED 115M +3.6% vs breakup · IRR −3.4% · target ≤83.6M
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