Palazzo Versace Dubai has been put on auction, with the minimum bid price set at USD 9 billion. Bid submissions for the property, located in the city’s Al Jaddaf area, will be open for just over 3 days, according to the auction details.
Palazzo Versace Dubai was the Venue for the Global RLI Awards and RLI Connect Global were held in 2017
There had been talk in banking and property circles about a possible sale of the property for some time now. At several points over recent years, there had even been talk about ‘imminent’ deals being struck with a new buyer.
The trade license on the property is not part of the sale, though. The hotel spans 478,985 square feet, including the ground floor plus nine storeys, according to the details provided. The hotel, which has 215 rooms, opened in late 2015.
According to hotel industry sources, the Palazzo Versace had been hitting some fairly decent occupancy rates in recent months, helped, of course, by Dubai continuing to exert its influence as one of the most visited destinations in the world.
If the Palazzo Versace auction does not generate bids that match up to the base price of Dh1.34 billion, then the auction will in all likelihood be pulled. And then could be introduced at a later date.
“Palazzo Versace Dubai will be an exceptional fit into any investor’s portfolio,” said a hotel operator. “All that needs to be seen is what price a new buyer will get into.”
More ‘realistic’ prices are starting to show up in Dubai’s non-offplan property listings space, as sellers manage their expectations on what values are likely to help them find a buyer.
Under the current Dubai Land Department template on online sales pitches, such distortions on prices have been removed. With just three agents allowed to market a particular property at any given time, the asking prices are seeing a clear moderation.
Palazzo Versace is owned by Enshaa’s subsidiary Emirates International Holdings and it cost $626 million to build.
