The UAE-based IBC Group plans to acquire 10,000 of Dubai’s leading properties for furnishing and managing as holiday homes and has contracted with Berkshire Hathaway Home Services Gulf Properties (BHHS) to help identify and finance properties.
The deal is valued at $ 5 billion (AED 18 billion), with the possibility of expanding the scope of buying 1 million properties in more than 100 cities around the world, according to a statement from the IBC Group. The deal will be financed through $ 1 trillion Sukuk.
Operating in the UAE since 2014, the IBC Group mainly focuses on private equity investments in real estate. The group is backed by banker Khurram Shroff who said the deal will focus on highlighting the UAE as a Muslim-friendly travel destination. “For the Muslim traveller, providing Sharia-compliant vacation homes with standardized Qibla direction and prayer mats in each of our apartments will enhance our offerings in this sector,” he said.
IBC Group has been operating in the UAE since 2014, focusing primarily on private equity investments in real estate. The group is backed by banker Khurram Shroff, who said the deal would focus on highlighting the UAE as a Muslim-friendly travel destination. For the Muslim traveller, the provision of Shariah-compliant holiday homes with the standard mats of direction and prayer in each of their apartments will enhance their offerings in this sector, he added.
Khurram is also the co-founder of The Gallery Suites Vacation Rentals, a global short-term leasing management company that serves property investors, homeowners and Airbnb hosts.
IBC Group sees the short-term prospects of the venture promising due to Expo 2020, which is expected to attract around 25 million visitors from across the world.
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 group said in a statement.
Berkshire Hathaway HomeServices announced the expansion of its franchise network into the UAE in April with the opening of Berkshire Hathaway HomeServices Gulf Properties.