248-Key Hotel and 37-Shop Commercial Mall for Sale in Mirdif, Below Valuation

Property Overview

This is an off-market sale of a combined hotel and commercial mall in Mirdif, Dubai, offered at AED 900,000,000. The asset comprises a 248-key hotel and 37 retail shops across 653,830 sq ft of built-up area. The agent cites a valuation of AED 1,149,000,000, which places the asking price AED 249,000,000 or 21.7% below that valuation.

Asset Highlights

• Asset type: Hotel plus commercial mall
• Hotel: 248 keys
• Retail: 37 shops
• Total built-up area: 653,830 sq ft
• Asking price: AED 900,000,000
• Agent-cited valuation: AED 1,149,000,000
• Gap vs valuation: AED 249,000,000 (21.7%), as calculated by DPF
• Agent-stated rental income: AED 123,000,000 per year
• Gross income yield on asking price: approx. 13.7% (calculated)
• Price per sq ft of BUA: approx. AED 1,377 (calculated)
• Sale type: Off-market; agent requests closing within 5 days

Why the Price Qualifies as Below Market

The agent compares the AED 900,000,000 asking price with a valuation of AED 1,149,000,000. On those figures the asking price is AED 249,000,000 or 21.7% below valuation.

The agent's brief describes the gap as AED 299,000,000. That figure does not match the stated valuation: a AED 299,000,000 gap would imply a valuation of about AED 1,199,000,000. DPF uses the calculated AED 249,000,000 until the valuation report confirms the correct figure.

Calculation

• AED 1,149,000,000 minus AED 900,000,000 = AED 249,000,000
• AED 249,000,000 / AED 1,149,000,000 = 21.7% below valuation
• AED 900,000,000 / 653,830 sq ft = approx. AED 1,377 per sq ft

The valuation's date, author and basis were not supplied. Buyers should obtain the full RERA-registered valuation report before relying on this comparison.

Income Profile

The agent states annual rental income of AED 123,000,000 and an ROI of about 14.5%. Dividing AED 123,000,000 by the AED 900,000,000 asking price gives a gross yield of approximately 13.7%, so the agent's 14.5% may be calculated on a different basis. It is not known whether the AED 123,000,000 is gross or net of operating costs, how it splits between hotel and retail, or whether it is contracted, historical or projected. Buyers should request audited accounts, the hotel operating statements, the retail tenancy schedule and lease expiries.

About the Location

Mirdif is an established residential and retail district in eastern Dubai, close to Dubai International Airport, with access via Sheikh Mohammed Bin Zayed Road, Airport Road and Tripoli Street.

Transaction Considerations

A hotel and mall acquisition of this size typically requires technical, legal and financial due diligence, including title and plot verification, building condition and fire-safety reports, DTCM hotel licensing, any operator or management agreement, tenancy contracts and service charge or community obligations. The agent's five-day closing window is short for this level of diligence, and buyers should take independent legal and valuation advice before committing funds.

Verification Notes

• Agent-supplied facts: location, 248 hotel keys, 37 shops, 653,830 sq ft BUA, asking price AED 900,000,000, valuation AED 1,149,000,000, stated AED 299,000,000 gap, rental income AED 123,000,000, stated ROI of about 14.5%, off-market sale and five-day closing.
• Calculated by DPF: gap against valuation, gross yield on asking price and price per sq ft.
• Not supplied: asset name, plot size, valuation date and source, income basis, operator details, tenancy schedule and service charges.