DIFC’s last remaining land plot sold for $79mln

The plot, which has a potential redevelopment value of $545mln is expected to be mixed used development

DIFC Buidling in Dubai. Image used for illustrative purpose

DIFC Buidling in Dubai. Image used for illustrative purpose

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The last remaining plot of land in Dubai International Financial Centre (DIFC), currently owned by Emirates NBD, has been snapped up for AED 289 million ($79 million) in a cash deal, according to property consultant Knight Frank.

The 190,700 sq.ft. plot, which has an estimated build-up area of 2.2 million sq.ft., is next to Burj Daman and opposite ICD Brookfield and was bought by a private family developer, whose details are yet to be disclosed.

The plot, which as a potential redevelopment value of AED 2 billion ($545 million) is expected to be mixed used development incorporating hospitality, residential, commercial and retail space, said real estate consultancy Knight Frank, who advised sellers Emirates NBD. 

“Emirates NBD appointed Knight Frank and CoReal to sell the plot through a private treaty sale process, which received multiple buyer interest from across the world through multiple bidding rounds,” Knight Frank said in a press release, adding, “The plot was finally secured by a private family developer represented by Luxhabitat Sotheby’s International Realty.”

Andrew Love, partner, head of ME capital markets and commercial agency, Knight Frank, Gaurav Shivpuri, founder and partner of CoReal, said in a joint statement: “A deal of this magnitude is monumental not just for Dubai International Financial Centre, but also Dubai itself.

“It re-affirms Dubai’s position as one of the key global investment centres, signified by the vast amount of international buyer interest this land plot received. For DIFC as well, a mixed-use development such as this is invaluable and further expands the district’s diverse real estate portfolio offering.”

According to a document published by DIFC Courts, former owners, Abu Dhabi-based Al Rihab, part of Al Jaber Group, acquired the land from DIFC Investment (DIFCI) after taking out a AED 201 million loan in 2006 from National Bank of Dubai (NBD), which later merged with Emirates Bank International to become Emirates NBD. 

When the company failed to make repayments, it was subjected to court repossession proceedings in 2020, which found in the bank’s favour. An appeal by Al Rihab against the repossession was dismissed by the court in April 2021, the documents showed.

(Writing by Imogen Lillywhite; editing by Seban Scaria)


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© ZAWYA 2021

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