UAE-based IBC Group announced on Wednesday that it intends to acquire 10,000 properties in Dubai to furnish and manage as holiday homes.
The company said it has contracted Berkshire Hathaway HomeServices Gulf Propertieson an exclusive basis to play an advisory brokerage role to assist in identifying, acquiring and financing the properties.
The deal is valued at $5 billion, with a possible scale up to acquiring one million properties in over 100 cities across the globe, a statement said.
Operating in the UAE since 2014, the IBC Group has focused on private equity investment in real estate, arts and future technologies.
The group is backed by global banking and finance leader Khurram Shroff, who is also the co-founder of The Gallery Suites Vacation Rentals, a worldwide short-term rental management firm, which focuses on providing specialised services to property investors, homeowners, and Airbnb hosts.
IBC Group said it aims to become a key influencer in building the confidence in the real estate industry across the Middle East.
It added that the properties to be acquired will be financed via an Islamic finance vehicle known as sukuk.
“We believe in interfaith harmony and cater to all beliefs,” said Shroff. “For the Muslim traveler, providing Sharia-compliant vacation homes with standardised Qibla direction and prayer mats in each of our apartments will enhance our offerings in this sector.”
The IBC Group said it perceives strong opportunities for growth in the short-term accommodation market in Dubai, especially in light of the approaching Expo 2020 event which is set to attract 25 million visitors from all around the world.
Shroff added: “This partnership represents the coming together of organisations that each bring specific strengths to the table, which will ensure the delivery of the highest possible standards of services and facilities in the Dubai short term accommodation market”.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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