Viceroy Dubai Palm Jumeirah has begun construction on its Dhs3.67 billion ($1 billion) project.
SKAI Holdings, the Dubai-based real estate investment firm, said the luxury retail and hospitality project has received ‘an overwhelming response’ from investors since its launch in May this year. All available inventory has now been sold.
“Today marks a key development in the construction of the Viceroy Dubai Palm Jumeirah. Following months of hard work, we are now starting to see the structure take form,” said Kabir Mulchandani, CEO of SKAI Holdings.
“We are delighted with the response from the market and are pleased to be able to show our investors that the project is progressing smoothly and ahead of target.”
Viceroy Dubai Palm Jumeirah will offer 479 rooms and suites and 222 Viceroy Residences with sea views. It has a completion date of 2016.
The resort will use a unique investor model that enables buyers to purchase hotel rooms, which are then leased back in exchange for 40 per cent of the room revenue. Based on current market conditions, investors’ annual rate of return is estimated at 12 per cent.
“We are pleased to announce this key milestone in the construction of this ambitious project,” said Yu Tao, President and CEO of China State Construction Engineering Corporation (Middle East) (L.L.C).
“Now that the enabling and piling works are nearing completion, we can push ahead with the main structural work, which puts us on target to complete by 2016.”
The hotel will be located at the base of Palm Jumeirah.