Business Bay Sky Tower
Bay Avenue, Business Bay, AE
Net Yield
7.8%
Min. Investment
AED 5,000.00
Funding
27%
Target Hold
24mo
Risk Score
17/100
Projected Net Yield
7.8%
Min. Investment
AED 5,000.00
AED 4,120,657.09 of AED 15,000,000.00
Not accepting investments
Investment Summary
Key metrics and funding progress
Projected Net Yield
7.8%
Annual rental income net of costs
Projected Annual Return
20.5%
Yield + 12.7% appreciation
Min. Investment
AED 5,000.00
AED 2,348.52 per share
Property Value
AED 14,657,882.06
Share Price
AED 2,348.52
Total Shares
6,387
Available Shares
4,633
Target Hold
24 months
Occupancy
90%
Current Valuation
AED 14,657,882.06
Funding Status
27%
Funding Progress
AED 4,120,657.09 of AED 15,000,000.00
27%
Property Specifications
Physical characteristics and amenities
Property Type
Apartment
Bedrooms
1
Bathrooms
2
Interior Size
720 sqft
Year Built
2019
Furnishing
Furnished
Building
Executive Tower
Rental Type
Long-Term
Service Charge
17.00 AED/sqft/yr
Gross Yield
10.47%
OPEX Ratio
33.31%
Energy Rating
BREEAM Good
Amenities
Regulatory & Exit Terms
Regulator
DIFC
Shariah
Compliant
Lock-in Period
12 months
Exit Window
biannual · 14d
Institutional Metrics
Debt structure, tenant analytics, and risk assessment
Institutional Risk Score
17/100
Low Risk
Lower scores indicate lower risk. Based on WALT, tenant concentration, debt maturity, break-even occupancy, DSCR, LTV, and vacancy.
Loan-to-Value
46.49%
Conservative leverage
Debt Service Coverage
1.28x
Healthy coverage
Break-Even Occupancy
65.95%
Occupancy needed to cover debt service
Top Tenant Concentration
67.59%
Well diversified
Debt Amount
AED 7,097,975.49
Interest Rate
6.03%
WALT
1y 10m
Investment Calculator
Estimate your projected returns. Figures are estimates, not guarantees.
Ownership %
0.0500%
Est. Fees (platform + mgmt)
AED 176.14
Projected Annual Rental Income · proj.
AED 544.60
Projected Capital Gain · proj.
AED 1,910.25
Total Projected Return (net of fees) · proj.
AED 2,823.32
Annualized Return · proj.
18.4%
Est. Net Proceeds at Exit · proj.
AED 8,589.00
Exit Value (Projected) · proj.
AED 8,955.81
Projected — not guaranteed
These figures are projected estimates based on current assumptions (yield, appreciation, occupancy). Actual returns may differ materially. Investments involve risk, including possible loss of principal.
Property Analytics
Performance, valuations, and operating metrics
Gross Yield
10.6%
Net Yield
7.4%
Projected ROI
42.0%
Projected IRR
19.8%
Valuation History
Rent History
Operating Metrics
Expense Breakdown
Investment Thesis
Why this property, the location, and the opportunity
Business Bay Sky Tower is a high-yield income opportunity in Business Bay, offering commercial exposure to a supply-constrained market. The asset benefits from strong transport links, growing occupier demand, and a clear exit path through institutional demand for stabilized, income-producing real estate.
Why this property
Business Bay Sky Tower offers a rare entry point into Business Bay's value-add reposition segment at an attractive acquisition basis. The property is underwritten with a 7.8% net yield and 12.7% projected appreciation, supported by structural demand drivers and a disciplined exit strategy.
Location thesis
Business Bay is one of AE's fastest-growing real-estate markets, with sustained population inflows, infrastructure investment, and limited new supply in prime submarkets. The location benefits from proximity to transit, employment hubs, and lifestyle amenities that underpin rental demand.
Rental demand
Occupier demand remains robust, with vacancy rates below the market average and rising rents driven by a growing professional and expatriate population. The asset is positioned to capture above-market rent growth over the hold period.
Supply & demand
New supply in the immediate catchment is constrained by planning restrictions and land scarcity, creating a favourable supply-demand imbalance that supports both rental and capital-value growth.
Infrastructure
Significant public and private infrastructure investment — including transit upgrades, public realm improvements, and mixed-use development — is underway and expected to enhance connectivity and asset values over the investment horizon.
Neighborhood growth
The surrounding neighborhood is experiencing gentrification and demographic renewal, with rising household incomes, new retail and F&B offerings, and improving school ratings — all positive indicators for sustained rental demand and capital growth.
Tenant profile
The target tenant cohort comprises mid-to-upper-income professionals aged 25-45, a segment with stable employment, low default rates, and strong willingness to pay for quality, well-located accommodation.
Exit strategy
The exit is planned via sale to an institutional buyer or REIT at the end of the development period, targeting an exit cap rate consistent with comparable stabilised asset transactions. A secondary-market liquidity window provides interim optionality.
Assumptions
Projections assume 7.8% net yield, 12.7% annual appreciation, 95% occupancy, and a 24-month hold. Exit cap rate is held constant at acquisition. Expenses are modelled at 25% of gross rent.
Downside scenario
In a downside scenario (rent -10%, exit cap +50bps), the investment is projected to remain capital-protected with a modest positive total return, reflecting the conservative acquisition basis and income cushion.
Comparables
| Asset | Location | Price/sqft | Cap Rate | Date | Status |
|---|---|---|---|---|---|
| Business Bay Comparable A | Business Bay | 2,084 | 5.74% | 2024-Q3 | sold |
| Business Bay Comparable B | Business Bay | 1,759 | 4.63% | 2024-Q2 | sold |
| Business Bay Comparable C | Business Bay | 1,648 | 5.81% | 2024-Q1 | listed |
Key Risks
Interest-rate movements affecting exit cap rates
mediumConservative exit cap rate assumption held constant at acquisition
Construction or renovation cost overruns
lowStaged capital deployment with fixed-price contracts
Tenant concentration / vacancy
mediumDiversified tenant covenants and staggered lease maturities
Macroeconomic slowdown affecting rental demand
lowBelow-market acquisition basis provides income cushion
Due Diligence Room
Property documents and legal pack. Some documents require login to access.
Legal & Subscription
Subscription & Shareholders Agreement
v1 · 9/23/2026
Valuation
Independent Valuation Report
v1 · 9/23/2026
SPV / Corporate
SPV Articles of Association
v1 · 9/23/2026
Legal & Title
Title Deed & Due Diligence Pack
v1 · 9/23/2026
Contracts
Property Purchase Agreement
v1 · 9/23/2026
Structure & Tenancy
SPV ownership and current tenant profile
Ownership Structure
Business Bay Sky Tower SPV 2
ADGM · 6,387 shares
Current Tenancy
Emily Brown
Lease 1/1/2025 – 12/28/2026
Investor Communication Timeline
Property lifecycle milestones and updates
Distribution finance approved
Sep 30, 2026
AED 71,750.00 distributable for period ending 9/30/2026
Distribution Paid
Sep 5, 2026
AED 71,750.00 distributable for period ending 8/31/2026
Distribution Paid
Dec 5, 2025
AED 389,720.80 distributable for period ending 11/30/2025
Rent Received
Dec 3, 2025
AED 87,500.00 for Dec 25
Rent Received
Nov 3, 2025
AED 87,500.00 for Nov 25
Valuation Updated
Jan 1, 2025
AED 14,657,882.06 by Internal
Tenant Onboarded
Jan 1, 2025
Emily Brown lease commenced
Risk Disclosure
Projections are estimates based on current assumptions and are not guaranteed. Actual results may differ materially due to market conditions, interest rates, occupancy, and operating performance.
These investments are illiquid. Shares may not be freely transferable and there is no public market. You should be prepared to hold your investment for the full target hold period and potentially longer.
Real estate investments involve risk, including the possible loss of principal. Past performance does not guarantee future results. You should consult a qualified financial advisor before investing.