Damac Properties revealed as bidder for Surfside collapse site

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The founder of Damac Properties, Hussain Sajwani, and the site of the Surfside collapse (Damac, Getty)

UPDATE, September 24, 3:30 p.m .: Damac Properties, a Dubai-based developer, is the bidder for the Champlain Towers South collapse site in Surfside, The real deal has learned.

East Oceanside Development LLC, a Delaware company linked to Damac, a publicly traded company, has signed a contract to pay $ 120 million for the beachfront property. The identity of the company has been disclosed in a petition in approval of the sales contract, filed Friday in court. Judge Michael Hanzman, who is overseeing the litigation, is expected to approve the motion at next week’s hearing.

Damac, founded by billionaire Hussain Sajwani, defines himself as a luxury developer who has shaped the Middle East real estate market with projects across the UAE.

The bidder made his bid in August, setting the minimum price for the property at 8777 Collins Avenue, where nearly 100 people were killed when the building collapsed in late June.

Other bidders will be able to submit their bids at an auction slated to take place between late February and March, receiver Michael Goldberg said in a hearing Thursday morning.

Damac is expected to make an initial deposit of $ 16 million, of which $ 150,000 is non-refundable and will have a 60-day due diligence period. In the meantime, Avison Young continued to market the nearly 1.9 acre property, after issuing an offering memorandum. Court records show that information has been provided to more than 160 interested buyers.

Avison Young broker Michael Fay said he was speaking with foreign buyers, including groups from Canada, Mexico and Europe.

“We continue to market it internationally and await the judge’s approval of the petition next week,” Fay said.

Jeff Cohen and Vivian Dimond of Brown Harris Stevens represented Damac.

During the auction, only bidders who bid more than the floor price of the hunting horse will be able to proceed.

If Damac ends up being the successful bidder, Surfside development will be his first known venture in the US, as his website doesn’t list any other projects here.

Founded in 2002, the company’s developments focus on Dubai, including the four towers Paramount Hotels & Resorts Dubai with 1,200 luxury apartments; the Zada ​​tower with luxury apartments; and the Aykon City four-tower residential project on the banks of the Dubai Canal.

In London, he developed the 50-story Damac Tower Nine Elms apartment tower with Versace Home interiors.

The company has also developed Trump branding projects in the past. In 2015, one of Damac’s Akoya developments with a golf course and large residential community dropped the name “Trump International Golf Course” in gold letters and a billboard showing former President Donald Trump, in following the anti-Muslim comments of the then presidential candidate.

Sajwani, an Emirati billionaire, also has his own investment company, DICO Group, created in the early 1990s. DICO owns 100% of the Italian fashion house Roberto Cavalli.

Damac Properties had applied for regulatory approval to go private and received approval this week on Associated press reported. Sajwani, who stepped down as president earlier this year to avoid a conflict of interest, owns 72 percent of Damac and has offered nearly $ 600 million early June to privatize the company.


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