SKAI Dubai hotel project nets $653m sales
Dubai, September 17, 2013
SKAI Holdings, a Dubai-based real estate investment firm, said it has secured Dh2.4 billion ($653 million) worth of sales since the launch of its prime 'Viceroy Dubai Palm Jumeirah' project.
The Viceroy Dubai Palm Jumeirah, a Dh3.67 billion sprawling property, boasts of 481 large rooms and suites and 221 signature Viceroy Residences with breathtaking views of the Arabian Sea. It is easily accessible from mainland Dubai
Located just 15 minutes from the city’s downtown centre, the hotel is close to major tourist and business attractions such as the Dubai Marina and Dubai Media City.
SKAI Holdings, which officially launched the project with hotel operator Viceory Hotels and Resorts in May, has sold 470 hotel rooms and hotel apartments and 219 residential apartments and villas to date, representing 98 per cent of the total available units.
The remaining areas such as the food and beverage outlets, meeting rooms, banquet hall and the spa will be retained by the developer.
Work on the development is currently underway with 100 per cent of the shoring excavation work complete and and the piling and foundation works set to start this month.
Commenting on the response, CEO Kabir Mulchandani, said: "Investors have been extremely keen to purchase property in this exciting new project, which we believe will become one of the region’s most sought-after resorts."
"Buyers have been particularly interested in purchasing the hotel rooms, which is a unique business model here in the UAE," stated Mulchandani.
Under this scheme, the buyers get to purchase hotel rooms, which are then leased back in exchange for 40 per cent of the room revenue. Based on current market conditions, investors’ annual rate of return is estimated at 12 per cent.
According to Mulchandani, Dubai has always been a safe haven for regional investment but in light of the recent political unrest in the region, the emirate has seen a rise in the number of investors looking to purchase property.
SKAI had ealier announced that its main contractor, China State Construction Engineering Corp (Middle East) – the regional operations of the world’s largest construction company – will be investing in the project, forming a special purpose vehicle, ASSAS, together with SKAI Holdings.-TradeArabia News Service