Dubai: Court intervention has been ordered to stop the popular auction that was supposed to take place one day before the end of the bidding process of Palazzo Versace Hotel in Dubai.
The hotel then came on the market late last week and is now one of the most visible properties on Dubai’s real estate market. As stated, the auction had a reserve price of Dh1. 34 billion and the bidders are given five days time frame to tender their bids.
Still, the auction was supposed to start at 4 pm non that was the time when the bidding came to a halt since no one has raised any bid. An auction is a dynamic system and there are some features that are typically exhibited by bidders in the final minutes of an auction – a phenomenon that is further accentuated by the timing of the court’s order.
Unfavorable conditions had spurred interest in the auction process as investors were unsure if they should start bidding or wait and see. From thereon, the imposition of court action into the situation has forced the future of the auction to become a mystery that is also keeping those who are interested to wait.
Some months back there was noise about a hotel in the US under consideration for a takeover but none came through. This factor turned to be particularly important since the news about the property being placed under the auction” again increased its value due to being located in the Al Jaddaf district with the access to the waterfront.
Palazzo Versace is well known for its luxurious structures and facilities and it still one of Dubai’s super Hotels. This twist of affairs is a fresh cause of anxiety for sellers and buyers as the court comes to take over the sale.
Still, it seems that the only actors involved in this story right now are lawyers who have to settle the issue and make an official statement on the future of this amazing hotel.
