For sale

2,560 sqft office

Saba Tower 1, Jumeirah Lake Towers

Property details

Office

Built up area

2,560 sqft

Average net ROI

8.74%

Ref no.

ZK-SABA1-002

AED 10,800,000

All listings

Najeeb Zakri

Investment Advisor

Reach out now

An office in Saba Tower 1 on a three-year lease with a three-year lock-in, producing AED 1,050,000 in its first year.

The largest of the three and the strongest average return. The office is let for three years with a three-year lock-in at an average of AED 431 per square foot, which means the income is fixed and unbreakable for the whole of the hold a buyer is underwriting.

Year one produces AED 1,050,000 plus VAT, stepping up five per cent a year and settled in two cheques. Net of the service charge that is AED 996,240 in the first year against a VAT-inclusive cost of AED 12,013,280, rising to AED 1,103,865 by the third.

On a three-year view the net return runs 8.29, 8.73 and 9.19 per cent, an average of 8.74. That average is the highest of the three offices here, and it is achieved without any assumption about renewal, because the lock-in covers the full term.

As with the others, the published figure is the cautious one, struck on the cost including VAT. Recovered, the three-year average net return is 9.16 per cent.

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The investment case

8.74%

3-year average net ROI

On the total purchasing cost including VAT

9.16%

Net of VAT recovery

For a VAT-registered buyer

9.72%

Gross ROI

Year one rent on the purchase price

Purchasing costs

The purchasing costs for 2,560 sqft office, in AED
Purchase price, ex.VATAED 4,218.75 per sqft · 2,560 sqft	AED 10,800,000
Transfer fee (DLD, 4% of purchase price)	AED 432,000
Agency fee (2% of purchase price, ex.VAT)	AED 216,000
Sales progression (conveyancing)	AED 9,500
Trustee fee and title deed admin	AED 4,980
Total purchasing cost, ex.VAT	AED 11,462,480
Total purchasing cost, inc.VAT	AED 12,013,280

VAT falls on the purchase price and the agency fee. It does not fall on the DLD transfer fee, conveyancing or the trustee fee, which is why both totals are shown rather than one derived from the other.

The lease

Term: Three years, three-year lock-in
Dates: 10 August 2026 to 9 August 2029
Average rent: AED 431 per sqft
Rent, year one: AED 1,050,000 plus VAT
Increment: 5% a year
Payment: Two cheques a year

Service charge runs at AED 21 per sqft, taken out of the rent in every year below before the return is struck.

Rental income and return

Rental income and net return for 2,560 sqft office, by year, in AED
Measure	Year 1	Year 2	Year 3
Rent per sqft	AED 410.16	AED 430.66	AED 452.20
Rent per annum	AED 1,050,000	AED 1,102,500	AED 1,157,625
Less service charge	(AED 53,760)	(AED 53,760)	(AED 53,760)
Net rent	AED 996,240	AED 1,048,740	AED 1,103,865
Net ROI, on cost inc.VAT	8.29%	8.73%	9.19%
Net ROI, on cost ex.VAT	8.69%	9.15%	9.63%

Every figure above is taken from the seller’s costing sheet and the signed tenancy contract. The annual rent steps are the ones written into the lease, not a forecast. Returns are stated before financing, income tax and any cost of ownership not listed here, and a buyer should have the lease and the service charge budget verified independently before exchange.

Specification

Let for three years with a three-year lock-in
Average rent AED 431 per sqft
Year one rent AED 1,050,000 plus VAT
5% annual increment
Rent paid in two cheques a year
8.74% average net ROI
9.72% gross ROI
Saba Tower 1, Jumeirah Lake Towers
DMCC free zone
Service charge AED 21.00 per sqft

Disclaimer: all sizes listed are approximate and based on the documentation provided at the time of listing the property. Exact unit and plot sizes may vary from what is presented above.