UAE: UAE-based IBC Group announced plans to spend $5 billion on acquiring 10,000 properties to furnish and manage as holiday homes in Dubai.
The investment company has contracted Berkshire Hathaway HomeServices Gulf Properties (BHHS) on an exclusive basis to assist in identifying, acquiring and financing the properties.
IBC Group said the move aims to build confidence in the region’s real estate industry. The company also said it intends to acquire up to a million properties in more than 100 cities worldwide.
The group is backed by Khurram Shroff, co-founder of The Gallery Suites Vacation Rentals, a worldwide short-term rental management firm that specialises in services to property investors, homeowners and Airbnb hosts.
The company will cater to the growing number of Muslim travellers in the country. The Global Muslim Travel Index has featured the UAE as one of the most favoured Muslim travel destinations, according to IBC Group, adding that “the alliance intends to address this segment of the market ably”.
“We believe in interfaith harmony and cater to all beliefs,” said Shroff. “For the Muslim traveller, providing Sharia-compliant vacation homes with standardised Qibla direction and prayer mats in each of our apartments will enhance our offerings in this sector.”
The properties will be financed via a $1 trillion sukuk, a Sharia-compliant bond.
IBC Group, which has been operating in the UAE since 2014 said the short-term goal of the venture is top cater for the upcoming Expo 2020, which expects to attract around 25 million visits from international travellers. “However, with the regulatory framework governing the Dubai business ecosystem becoming increasingly more lucrative for investors and corporations, the possibilities for medium and long-term growth also hold significant promise,” the company said in a statement.
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