Dubai: As one of the legacy projects that Dubai implemented in the year 2005, this building is receiving another round of facelift.
The ‘Dubai Lifestyle City,’ that was introduced by ETA earlier than has been sold 68 plots for Dh175. 6 million. This area is in Dubailand and in the recent past there has been a lot of development and infrastructure works to support the sort of development the new buyer of Lifestyle City plans to undertake.
However, what was very surprising was that there was not even any competition in the bidding process as there was only one entity that offered to take on the project. Lifestyle City had previously been listed twice, and its previous listing has failed to draw the interest of any bidders. Originally announced in mid-2000s, it was initially developed with a view to become an upper-tier housing project that was planned to be created by a private player. This position could be attributed to the fact that at that time, the freehold sub-market was mainly occupied by Emaar and Nakheel while other private developers were much interested in the tower projects.
Falcon City Sales
The sale of Lifestyle City displays the second divestment on a project that started during the boom period. Earlier the Falcon City development observed that 794 plot has been sold for Dh1. 2000 after the company had floated at Dh2. 5 billion. This development is also sited in Dubailand.
In the contemporary and modernizing society of Dubai specifically in the real estate sector, old projects are being brought anew. Major conversions and reacquisitions are forecast, though, it may make major sense for the new acquirers. Such troubled assets are especially disposed through sales by auctions so that the sellers can off their debts hence the happy sides.
“Many of these projects had to be auctioned because of previous problems and creditors’ claims,” Fadi Massouh, the CEO of Ai Real Estate, an advisory firm stated, and added that, investors will be wise to do so to acquire large land banks free of any liabilities.
It is the third project out of several launched between 2005 and 2008 to be released for auction. The source of Dubai crisis was also identified with the penthouse of ‘Pentominium’ skyscraper site in Dubai Marina that was bought for $100 million and is being developed into a Six Senses by Select Group branded project.
