Dubai Marina's popularity continues to rise up the scales, with average selling prices on apartments inching closer to Dh3 million. Image Credit: Clint Egbert/Gulf News

Dubai: The action is heating up to buy up one of Dubai’s legacy luxury tower projects – the ‘Pentominium’ – through an auction, with the eventual buyer having to pay more than Dh360 million to get their hands on one of the most coveted sites in in Dubai Marina.

In all, 46 bids were received for the Pentominium, which was launched right at the start of the Dubai freehold boom in the mid-2000s. The skyscraper, a project from the now defunct Trident developer, was to be an all-penthouse project, and had immediately sold out after opening of offplan sales. (Some of the biggest names in Dubai’s business circles had been among the primary investors.)

At the time of the launch, Pentominium was among those luxury projects that firmly entrenched Dubai Marina’s status as one of Dubai’s first prime freehold residential locations. It was supposed to cost around Dh2 billion (based on mid-2000 project estimates).

“The heavy bidding – with 46 names in the fray – in the auction for the Pentominium clearly indicates that there is value to be had from reviving the project and taking it over the finish line,” said one of the bidders. “The process has seen some developer-investors with established presence in Dubai Marina with other projects. It would make sense for these investors to add this location and build it further.

“We expect a decision to be made soon.”

Even with the heavy build up across the location, Dubai Marina remains one of the choice spots for property investments (and renting) in the city. In the near future, signature hotel towers too will be completed there.

The average sale price on an apartment there is around Dh2.85 million, against the pre-pandemic average of Dh1.85 million. According to listings by Bayut, top end of the apartment options at Dubai Marina can hit a cool Dh20 million.

Stuck at 22.34%

The Pentominium project is at the 22.34 per cent built phase, for a tower that was to span 6 basement levels, ground floor and soaring to 122 floors. The gross floor area was supposed to be 1.25 million square feet.

While the bid closed on August 4 with 46 interested parties, there is still a chance for others to come in – provided they put up a bid 10 per cent higher than the current price. (While there has been no confirmation, it is believed that other investors could join in.)

Before the company went bust, Trident had multiple freehold tower projects in Dubai, but the Pentominium was the flagship.

“The location has always been talked about in Dubai property market circles,” said an estate agent. “The eventual winner of the bid will be sitting pretty – yes, the funding to complete will be heavy. But the payoff will be immediate.”