The deal will be financed through a $1trln sukuk, it said.
UAE-based IBC Group is planning to acquire 10,000 premier properties in Dubai to furnish and manage as holiday homes, and has contracted Berkshire Hathaway HomeServices Gulf Properties (BHHS) to assist in identifying and financing the properties.
The deal is valued at $5 billion (18 billion dirhams), with a possible scale up to acquiring 1 million properties in over 100 cities across the globe, according to a statement from the IBC Group. The deal will be financed through a $1 trillion sukuk, it said.
Operating in the UAE since 2014, the IBC Group mainly focuses on private equity investments in real estate. The group is backed by banker Khurram Shroff who said the deal will focus on highlighting the UAE as a Muslim-friendly travel destination. “For the Muslim traveler, providing Sharia-compliant vacation homes with standardized Qibla direction and prayer mats in each of our apartments will enhance our offerings in this sector,” he said.
Khurram is also the co-founder of The Gallery Suites Vacation Rentals, a worldwide short-term rental management firmthat provides services to property investors, homeowners, and Airbnb hosts.
IBC Group sees the short-term prospects of the venture promising due to Expo 2020, which is expected to attract around 25 million visitors from across the world.
“With the regulatory framework governing the Dubai business ecosystem becoming increasingly more lucrative for investors and corporations, the possibilities for medium and long-term growth also hold significant promise,” the group said in a statement.
Berkshire Hathaway HomeServices announced expansion of its franchise network into the UAE in April with the opening of Berkshire Hathaway HomeServices Gulf Properties.