IBC Group targets purchase of 10,000 holiday homes in Dubai
UAE-based private equity investment firm IBC Group has targeted taking a lead in the short-term accommodation market in Dubai ahead of next year’s Expo 2020 Dubai after it secured the brokerage services of Berkshire Hathaway Home Services Gulf Properties (BHHS). IBC Group says it plans to acquire 10,000 premier properties in Dubai, to furnish and manage […]
UAE-based private equity investment firm IBC Group has targeted taking a lead in the short-term accommodation market in Dubai ahead of next year’s Expo 2020 Dubai after it secured the brokerage services of Berkshire Hathaway Home Services Gulf Properties (BHHS).
IBC Group says it plans to acquire 10,000 premier properties in Dubai, to furnish and manage as holiday homes, with BHHS exclusively playing an advisory brokerage role to assist in identifying, acquiring and financing the properties.
The deal, worth $5 Billion (Dh18 billion), is intended as the beginning of scaling up process to acquiring 1 million properties in over 100 cities globally.
In a statement, IBC Group said its new venture comes at an opportune time, ‘with the S&P Global Ratings forecasting growth in the real estate and hospitality sectors by 2020’.
“With this strategic partnership with BHHS for leveraging their expertise, IBC Group aims to become a key influencer in building the confidence in the Real Estate industry across the Middle East,” said the company.
IBC Group established itself in Dubai five years ago and has subsequently focused on private equity investment in real estate, arts and future technologies.
According to IBC Group, its property acquisition will be financed via sukuk Islamic financing with a Sharia-compliant bond values as $1 trillion.
The group is backed by global banking and finance leader Khurram Shroff. Listed in the by Power100 as one of the ‘Top 100 Most Powerful and Influential Muslims in Great Britain and the World’, he co-founded The Gallery Suites Vacation Rentals LLC, a worldwide short-term rental management firm, which focuses on providing specialized services to property investors, homeowners, and Airbnb hosts.
“We believe in interfaith harmony and cater to all beliefs,” said Shroff. “For the Muslim traveler, providing Sharia-compliant vacation homes with standardized Qibla direction and prayer mats in each of our apartments will enhance our offerings in this sector.”
He added that the venture brings together the finest in skills, experience and market acumen.
“This partnership represents the coming together of organizations that each bring specific strengths to the table, which will ensure the delivery of the highest possible standards of services and facilities in the Dubai short term accommodation market.”
Further in its statement, IBC Group noted that it “perceives strong opportunities for growth in the short-term accommodation market in Dubai, especially in light of the approaching Expo 2020 event. The government’s thrust on innovation and infrastructure development is positioning Dubai as a global centre for trade, logistics, tourism and finance.
“The largest ever event of its kind in the MEASA region, Dubai Expo 2020 is set to attract an anticipated 25 million visitors from all around the world. With an increase in the number of travellers looking at leasing furnished properties on short-term basis globally, a substantial segment of these visitors are expected to avail of this alternative”.
IBC Group is hoping that placing of BHHS can propel it to the forefront of a growing segment within the hospitality sector.
“The short term prospects of the venture are particularly promising, in the light of Expo 2020. However, with the regulatory framework governing the Dubai business ecosystem becoming increasingly more lucrative for investors and corporations, the possibilities for medium and long-term growth also hold significant promise,” said the company.
