Typing up a Long term Lease for a Real Estate Developer in Dubai
Challenge
A well-known developer in Dubai had invested in the development of a commercial asset, however, during the financial crisis, it was imperative to onboard the right tenants for the asset for the long term as Dubai already had an excess supply of commercial spaces.
Strategy
ICREA advised the developer to convert the asset into a hospital. This was done after a lot of market study & analysis to find the best utilization of that asset, keeping in mind that long term income needs to be generated. It was concluded that the asset is best suited for a hospital as it had very good catchment areas and access to elite neighbourhoods with a high-income level population. The asset was then re-designed and converted into a hospital. ICREA subsequently assisted the developer in tying up with a very strong healthcare group as a long term tenant.
Result
The asset was converted into a productive and income-generating asset. The asset restructuring helped the developer make returns on investment and secure it as a long term investment.