Unfortunately, the auction at Dubai's Lamcy mall has once again failed. The question remains, can this shopping center still attract a potential buyer?
In the heart of Dubai, the iconic shopping destination, Lamcy Plaza, has once again failed to attract any bids in its latest auction. The property, which has been struggling since a fire broke out in 2017, has been put up for bidding for the third time.
The consortium leading the bid to acquire Lamcy Plaza is headed by SAB Capital. The banks involved in the sale may receive support from the Dubai government through guarantees or financial assistance to facilitate the sale.
The first auction process for the property took place last year with a bidding price of Dh210 million. However, the property may need to be sold through a private sale process to find an interested buyer. In the auction process, the seller could support a buyer by asking for staggered payments.
Industry sources suggest that a consortium of buyers could help manage the costs of re-opening Lamcy. Conservative estimates suggest that these renovation costs could range from Dh50 million to Dh100 million.
While the property has failed to attract bids, another property in Dubai received a massive response with over 207 bids during the same period. This response was for an abandoned project in JVC.
If someone acquires the property, they will need to start the process of repairing and re-opening it without delay to recover their investments. The retail mix of the mall could be tweaked to reclaim shopper traffic.
A potential re-opened Lamcy Plaza could have an increased representation of gold and jewellery outlets. This shift in focus could help attract a new customer base, given Dubai's reputation as a global hub for gold and jewellery trade.
Lamcy Plaza, if it re-opens as a community mall, is expected to have a solid start due to its historical significance in Dubai. The shopping destination has been a popular spot for locals and tourists alike for many years, and its re-opening could mark a significant revival for the retail sector in the city.
In conclusion, while the latest auction for Lamcy Plaza has been unsuccessful, the potential for this iconic shopping destination remains. With the right strategy and investment, Lamcy Plaza could once again become a thriving retail hub in Dubai.
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