The Cube For Sale in United Arab Emirates

Project

Name: The Cube Condo Residence
Total Investments: 561 apartments
Developer: BMG Middle East Development LLC
BMG is an international German contractor based in Berlin who has delivered more than €4 billion in projects. BMG is headed by Gerd Wuhlert, who has based himself in Dubai to personally oversee this project ensuring that his high standards are maintained while facilitating the smooth completion of The Cube on schedule.
Architects: Bothe Richter Teherani (BRT Engineering GmbH)]

Location

The Cube is located in the premier location within Dubai Sports City. The building has front views of the beautiful urban lake landscape and mall park, with the rear view overlooking the 4 impressive stadiums that will host a 12-month calendar of world class sporting events.

The design and architecture of The Cube gives its undeniable presence within Sports City and will be a focal point for the eye from all points of the city. Nestling as a green jewel within the stadium back drop, as a 5-star residence there will be unrivalled demand from high profile sports personalities, athletes, coaches and visitors alike.

Just as Dubai Sports City offers a centre of excellence for sporting events worldwide, so The Cube offers a residence of unsurpassed quality girth through from the architectural design, build specifications, quality of materials used, high-end fixtures and fittings and in addition a management operator that will offer a 5 star experience to all its visitors.

Completion Date

Fourth Quarter 2008

Rental Program

The owner will receive 50% of the Net revenue proportionate to the value of their investment against the total value of the building.

E.g. 100% of the investment = value of all 561 units.

The Investment

The Cube offers a complete value added package both for its investors and its residents. The Cube is a stand alone project that represents a high end investment opportunity yielding a minimum 10% ROI, assuming some very conservative market figures are met.

The return on investment has been calculated using the most conservative figures and the estimated return of 10% is based on the following assumptions:

An estimated occupancy rate of 70% at AED700 per room per night
Capital appreciation per annum of %5 of the price of the apartment
Service charges of AED10 per square foot
Management fees of AED15 per square foot
Total rooms subject to the lease back of 561
A furniture replacement reserve of 5% of the gross revenue
335 days of room availability
30 days reserved for the owner with all owners taking their full entitlement

The revenue from all the 561 units will be pooled as the gross revenue. Expectations are that the ROI should exceed 10% considering the current market figures in Dubai.

Payment Schedule

25% within 14 days of signing.
25% 3 months after first payment.
50% on completion as defined in the sale and purchase contract.