By Shane McGinley
Sale may be sign of activity in the emirate’s commercial real estate market
A Dubai-based real estate agent has advertised a 22-storey hotel property in Dubai Marina for sale, complete with a price tag of AED350m ($95m), Arabian Business has learned.
Located in the popular Dubai Marina area, the 462,340 sq ft property is a 22-storey hotel building, including 22 studio apartments, 74 one-bedroom apartments, 56 two-bedroom apartments and three retail units.
Additional selling points advertised include 170 parking spaces, a pool, spa and gym for the property advertised as a five-star hotel.
When contacted by Arabian Business, the sales agents representing the hotel’s owners refused to name the property, but said it is currently in operation and open for business.
Hotels matching the description and operating in the Marina area include the Radisson Blu Residence and the MiNC Marina Hotel Apartments.
The Kuwait-based owners of the Radisson Blu building failed to reply to emails and calls to confirm whether the property is for sale.
A statement from hotel operators Rezidor, the Belgian hotel group which owns the Radisson Blu brand, said the hotelier “manages properties on behalf of its owners [and] it does not have any involvement in the sale of the properties it operates.
“As we do not own the real estate aspect of the hotel, we are not in a position to comment on such transactions,” the company said in a statement.
A Dubai-based hotel analyst, who declined to be named, said it was commonplace for hotel owners to sell their properties without informing the management company.
The price of the hotel works out to AED7,570 ($2,061) per sq ft. This is significantly higher than the AED5,000 ($1,361) per sq ft asking price for apartments in Dubai’s Burj Khalifa, revealed by Colliers in November.For all the latest real estate 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.
Wonder if this is the Address Marina?
How can the owners sell or expect to sell without disclosing the property? Is this some kind of secret where the property is offered to a select few?
Emaar owned and almost certainly higher than 22 storeys - I don't think so.
The property does not need to be disclosed in an advertisement to be credible until a "qualified buyer" is presented. This prevents every agent in town pitching up to the property and making enquiries to the staff and management.Since it is a Hotel Apartment it would not obviously be the Address. It can't be a 5 star hotel based on the description in the article.
My question is why sell it if its making money and paying for itself? Whether its a hotel or a hotel apartment, its the revenue that counts i.e. is the place losing money, breaking even, making a profit.
Nobody will buy it at 7,750 Dirhams a square foot, which is quite amazing asking price considering the state of the market and also amidst this furor of geopolitical mayhem. Well not unless the present owners can prove that the payback is relatively swift i.e. based on the numbers its not going to be 10 years before you make any money unless you're in a position to borrow the funds.
Then my question would be are there banks out there keen to finance property acquisitions of this type and scale?
If the answer is yes then give me the telephone number please, as the best way to get an accurate value for the place is to ask how much the bank will lend you following their independently commissioned survey.
HaHa....it's worth a quarter of that!
It all depends on what they bought it for. If it is the building I suspect it is the owners bought it during the JBR construction stage and got in quite low. It was for sale in 2008 as well but there were no buyers. In addition Hotels are not sold or valued on a PPSF - typically rate per room or income based. Having said that it is over priced and cannot be considered a proper hotel without Liquor Licence, F&B etc. But it is still in JBR and Freehold so somewhere someone who needs to purchase in Dubai will take a serious look at it.
I was thinking about 1/5. You're too generous lol..
They probably received the community fees for the building and found out that the government was billing them community fees based on the size of the property and square footage of the building lol.. They most likely realized that they will be working just to pay fees to the local government and figured it would be better of they just sold the place. They should just accept what they get for that building lol.