Seller bought the building for 100.5M in 2023 and now offers it below his own cost — a confirmed distress motive.
Package offer14% vs piece-by-piece
AED 90.0M
104Mworth piece-by-piece
Buyer holds this price
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reserved for you
02
Why it's distress — sum of parts
Sold one by one at district median prices, the 82 units are worth ~104M. The whole building is offered for 90M — 14% below liquidation, and below the seller's own 100.5M cost from 2023.
ComponentMedianQtyWorth
Worth piece-by-piece104M
Discount captured
−14%
Worth 104M · offered for 90.0M — plus the seller sits below his own 2023 cost of 100.5M.
Two valuation bases. Entry priced by liquidation (104M piece-by-piece — a floor). Exit priced by income (going-concern, income value 101.7M). Both sit above the 90M offer.
03
Asset income — rent
Current rent (5.14M, partly Airbnb) sits below market — base is the market potential 7.37M gross per Ejari medians, an upside of +2.23M/yr from re-signing.
NET rent by year · base +3% · re-signed to marketAED / year
7.37Mgross potential / yr
−1.22Mservice charge
6.14Mnet year 1
Net yield on offer
6.8%
net 6.14M ÷ offer 90.0M — market potential per Ejari
Current rent (fact, part Airbnb)5.14M
Market potential (gross)7.37M
Re-signing upside+2.23M
− Service charge (Mollak)−1.22M
04
Full entry — all costs
Offer price90.00M
DLD transfer 4% + agent 2.1%+5.49M
Trustee + title (82 × 4 450)+0.37M
Full entry95.86M AED
Real deal amount
Offer 90.0M + 5.86M costs (4% DLD, 2.1% agent, trustee & title on each of 82 units) = 95.86M. This is the base for the IRR and exit.
06
Exit in 3 years — the roadmap
Enter in 2026, re-sign rents to market, hold and collect income, sell whole in 2029 at the market yield (6.54% base = 6.04% today + 0.5% buffer). 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.
Marginal on the base — value unlocks via negotiation
Base 3% growth gives IRR 8.6% — only +0.6pp over the 8% floor. Without rent growth the deal fails (5.1%); at Dubai-market 5% it earns a comfortable 11%. The real value paths: negotiate to ≤83M (IRR 12%) or bank on the re-signing upside.
Admin onlyWorking block — not shown to investors
Bargaining ladder — target IRR
Closing offer
Reserve Golf Promenade at the distress offer
Offered at 90.0M — 14% below piece-by-piece value and under the seller’s own 2023 cost. Base IRR 8.6%, ROI 27% over three years; our negotiation target is ≤83M.
Offer valid
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Allocated to private clients — this bracket typically closes before year-end.
