Dubai Holding realty arm plans land auction
Aims to sell three beach-side properties in Jumeirah on August 29 to companies experienced in hospitality sector
Dubai: Dubai Properties plans to hold an auction for three beach-side plots of land next month, an advertisement published yesterday showed.
Dubai Properties, part of Dubai Holding, said in the advertisement that the auction would take place on August 29.
"Dubai Properties Group intends to hold an auction for the lease of three beach club plots at Jumeirah Beach Residence Community on August 29 following a pre-qualification process," the advert said.
Interested companies are asked to have at least five years experience in the hospitality sector and be a registered company within the UAE.
One analyst said any bids were likely to be low.
Distressed levels
"Investors are wary of buying into any opportunities right now unless they are at distressed levels," said Saud Masoud, head of research and senior real estate analyst at UBS, adding that investor checks indicated an appetite for transactions is absent.
"Also I am not convinced that financing woes are behind us, which adds to the viability concerns of such an auction.
"This is a way to test the market, which unfortunately is lacking liquidity and conviction," Masoud said.
Dubai World has since reached a deal in principle with core creditors to restructure some $23.5 billion (Dh86 billion) of debt.
