Distress −15% · passes at ask191 units + 4 retailIncome approach
JVC · 191-Unit Building
Jumeirah Village Circle (JVC) · Dubai·191 units + 4 retail · 94 st · 74×1BR · 14×2BR · 9×3BR · NSA 134,403 sqft · 14 floors · 3 yrs
Whole building · 191 units + 4 retail
Passes at the ask — IRR 9.8% clears the 8% hurdle
At the 195M ask the passing income holds the entry (net yield 7.4%), the deal returns +63.1M over 3 years (IRR 9.8%, ROI 30.4%), and it sits 15% below the 228.8M break-up floor.
Package offer15% vs piece-by-piece
AED 195.0M
228.8Mworth 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 premium-tier medians, the 191 units + 4 retail are worth ~228.8M. The whole building is asked at 195M — 15% below break-up — and the income backs the entry (net yield 7.4%).
ComponentMedianQtyWorth
Worth piece-by-piece~228.8M
Discount captured
−15%
Worth ~228.8M · asked at 195.0M — a real −15% discount, with the income hold backing the entry as well as the break-up floor.
Two valuation bases. Break-up floor 228.8M (piece-by-piece); income value 208.3M — right at the all-in 207.76M. The bases agree: income supports the entry, and the break-up sits 15% above it as the downside floor.
03
Asset income — rent
Fully let at passing rent 18.06M gross. Net 14.37M after service charge 2.75M (Mollak) and 5.25% management — a 7.4% passing net yield. Indexed 3%/yr on the contractual base.
NET rent by year · passing · indexed +3%AED / year
18.06Mgross passing / yr
−2.75Mservice charge
14.37Mnet year 1
Net yield on offer
7.4%
net passing 14.37M ÷ ask 195.0M — fully let
Passing gross rent18.06M
− Management 5.25%−0.95M
Net operating income14.37M
− Service charge (Mollak)−2.75M
04
Full entry — all costs
Ask price195.00M
DLD transfer 4% + agent 2.1%+11.90M
Trustee + title (195 × 4 450)+0.87M
Full entry207.76M AED
Actual amount payable
Ask 195.0M + 12.76M costs (4% DLD, 2.1% agent, trustee & title on 195 titles) = 207.76M — at the income value 208.3M, 15% below break-up 228.8M.
06
Exit in 3 years — the roadmap
Enter in 2026, hold and collect passing rent, sell whole in 2029 at the premium-tier yield (6.90% = 6.40% cap + 0.5% buffer). Exit 226.2M sits above the 207.76M entry — profit is rent plus a real capital gain. 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.
Income hold clears — 6 of 9 cells above the 8% hurdle
The base clears at 9.8%. 6 of 9 cells sit above the 8% hurdle and no cell goes to loss — only the two softest corners (flat rent) dip below. Downside is held by the income and the 228.8M break-up floor.
Admin onlyWorking block — not shown to investors
Bargaining ladder — target IRR
Closing offer
JVC 191 — reserve at the ask
At the 195M ask the deal returns +63.1M over 3 years — IRR 9.8%, ROI 30.4%, clearing the 8% hurdle. Priced 15% below the 228.8M break-up floor, income backed. Reserve at ask.
Offer valid
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Allocated to private clients — this bracket typically closes before year-end.
