Al Warsan #4
Distressed Acquisition · Dubai, UAE · April 2026
Warsan 4
Building 1
A 100% complete, 78-unit freehold residential building acquired at AED 950/sqft — at the distressed floor of a market clearing at AED 1,050-1,150/sqft. Zero construction risk. Immediate sell-down from day one.
AED 57.3M
Acquisition price
AED 950
Per sqft (entry)
AED 1,050-1,150
Real market clearing
78 Units
100% complete
Investment thesis
Why this deal
works right now
01
Zero construction risk
The building is 100% complete. Capital is deployed directly into acquisition and sell-down — not development execution. No surprises, no delays, no contractor risk.
02
Day one revenue
Marketing and sales launch at close of acquisition. No handover delay. Revenue generation begins within weeks of completion, compressing the hold period and improving IRR.
03
Structural discount
Acquired at AED 950/sqft against retail comps of AED 1,050–1,150/sqft. The margin is structural — not dependent on market appreciation. The upside is already baked in at entry.
04
Freehold — foreign eligible
Warsan 4 is a designated freehold zone. The asset is open to international buyers, GCC family offices, European capital, and retail investors — maximising the buyer pool.
05
High-velocity unit mix
Studios and 1BRs represent 94% of the mix — the highest-demand segment in today's Dubai market driven by young professionals, remote workers, and yield-seeking investors.
06
Operator-controlled sales
Astamar manages all brokerage, pricing strategy, and distribution channels. No third-party dependency on execution. Full control over timeline, agent selection, and margin protection.
The asset
Warsan 4, Dubai
Building 1
Warsan 4 · Dubai · G+P+5+R · 100% complete
Location — Warsan 4, Dubai
Unit mix — 78 total
1 Bedroom
45
58%
Studio
28
36%
2 Bedroom
5
6%
Asset specifications
| Location | Warsan 4, Dubai |
| Tenure | Freehold |
| Structure | G + Podium + 5 + Roof |
| Total units | 78 |
| Plot area | 26,909 sq ft |
| BUA | 111,998 sq ft |
| Sellable area | 60,300 sq ft |
| Parking spaces | 82 allocated |
| Completion status | 100% |
Pricing summary
| Acquisition price | AED 57,285,000 |
| Entry (per sqft) | AED 950 |
| Real market range | AED 1,050 – 1,150 |
| Discount to retail | ~10% |
| Gross revenue (base) | AED 63.3M |
| Est. net profit | AED 3–8M |
Return scenarios
Three paths.
All profitable.
Bull case
AED 1,150
per sqft · 100% sold · 12 months
Gross revenueAED 69.3M
Net profitAED 8.7M
ROI on equity~82%
Equity IRR~128%
Equity multiple2.28×
Base case ★
AED 1,050
per sqft · 100% sold · 14 months
Gross revenueAED 63.3M
Net profitAED 3.8M
ROI on equity~64%
Equity IRR~87%
Equity multiple1.87×
Bear case
AED 1,050
per sqft · 80% sold · 18 months
Gross revenueAED 50.7M
Net profitAED 2.4M
ROI on equity~12%
Equity IRR~16%
Equity multiple1.12×
All scenarios assume AED 20M equity, remainder debt financed at 7%. Bear case still returns capital with positive yield.
Interactive financial model
Stress-test
the numbers
Adjust assumptions — all outputs recalculate in real time
1,200
100%
14
20M
Profit waterfall
Capital stack
Profit distribution (55/45 waterfall)
IRR sensitivity — exit price vs hold period
Bull (AED 1,150/sqft)
Base (AED 1,050/sqft)
Bear (AED 1,050/sqft)
Cumulative cash flow by quarter
Cumulative revenue (AED M)
Net cash position (AED M)
Risk & due diligence
Known risks.
Managed exposure.
Key risks
Sales velocity
78 units in Warsan 4 require a proven buyer pipeline. Target of 15–20 units per quarter is achievable but must be validated against live DLD transaction data before close.
Pricing slippage
If market conditions compress exit to AED 1,050/sqft, net profit falls to ~AED 2–3M. Still positive, but IRR compresses significantly. Monitored via quarterly repricing authority.
Balloon payment structure
Exact balloon date and liability TBC. A refinancing path via UAE bridge lender must be confirmed pre-close. Minimum sell-down to cover balloon is being modelled.
Seller motivation
The 29% discount to retail implies seller distress. Full legal, title, and defect due diligence required before close to confirm no encumbrances, litigation, or structural issues.
Mitigants & next steps
Confirm capital structure
Define equity requirement, debt facility, and distribution waterfall. Minimum equity of AED 20M recommended. Debt at 70% LTV from UAE lender to be sourced.
Title and legal review
Verify freehold registration, no encumbrances, developer warranties, DLD status, and full snag list review. Target 2–3 week turnaround with appointed UAE legal counsel.
DLD comparable validation
Pull actual registered transactions in Warsan 4 from DLD database to validate AED 1,050-1,150/sqft retail assumption before finalising financial model for IC.
Sales and marketing activation
Astamar to appoint RERA-registered agents, set unit pricing by type, and activate international distribution. Full control of brokerage operation from close.
Investment Terms
How the deal
is structured.
Capital structure — total equity $15M USD · Zero debt · No balloon
Family office (LP)
$10M
USD · 67% of equity
Astamar (GP)
$5M
USD · 33% of equity
Total equity
$15M
USD · No debt · No bank
Zero debt · No balloon payment · No lender risk · Full equity deal
Return structure
Preferred return (LP first)
8% p.a.
Above-pref LP split
65%
Above-pref GP split
35%
GP promote
20% of profits
Promote trigger
After 8% pref paid
Fee structure
Annual management fee
2% p.a.
Fee basis
Committed capital
Fee covers
Ops + sales + legal
Acquisition fee
None
Disposition fee
None
What the LP receives — on $10M invested
Bull case
$13.2M
returned on $10M
32% ROI · 12 months
Base case ★
$10.8M
returned on $10M
8% ROI · 14 months
Bear case
$10.2M
returned on $10M
2% ROI · 18 months — capital preserved
"Astamar is co-investing $5M alongside you. We only make our promote if you make your preferred return first. We're aligned."
ASTAMAR ASSET MANAGEMENT
On the management fee: The 2% annual fee covers property management, sales coordination, agent appointment, legal and DLD transaction management, and investor reporting. The promote is entirely separate — it only triggers after you have received your full 8% preferred return. They serve different purposes.
Exit Strategies
Multiple ways
to win.
Our primary strategy is individual unit sales to maximise retail pricing. However the asset structure gives investors two additional exit paths — providing flexibility and downside protection regardless of market conditions.
Primary strategy
Unit-by-Unit
Retail Sales
Retail Sales
Sell all 78 units individually at full retail pricing to end-users and investors. Astamar controls all brokerage, agent appointment, and pricing strategy. Maximum margin per unit.
Timeline
12–18 months
Target price
AED 1,050–1,150/sqft
Gross revenue
AED 63–69M
USD equivalent
~$19.6–21M
Alternative exit
Whole Building
En-Bloc Sale
En-Bloc Sale
Sell the entire building as a single transaction to an institutional buyer, family office, or developer. Faster exit at a slight discount to retail. Eliminates sales execution risk entirely.
Timeline
3–6 months
Target price
AED 1,050–1,100/sqft
Gross revenue
AED 57–60M
USD equivalent
~$17–18M
Upside scenario
Hold &
Appreciate
Appreciate
Hold the asset as Dubai market appreciation continues. At 8–12% annual growth the building reaches $22.5M+ in 18 months — creating refinancing or premium exit optionality above the base case.
Timeline
18 months
Projected value
$22.5M+
Gain on $15M
+$7.5M / +50%
Based on
8–12% p.a. growth
Hybrid approach — our recommended path
Begin individual unit sales immediately at close to generate cash flow and return LP capital progressively. If market conditions strengthen or a premium en-bloc offer emerges, pivot to a whole-building sale for maximum return. Astamar retains full flexibility to optimise the exit based on live market conditions.
Asset value trajectory — entry to 18-month projection
Day 1 · Entry
$15M
AED 57.3M · AED 950/sqft
Today · Retail
$19.6–21M
AED 63–69M · AED 1,050-1,150/sqft
12 months
$21–23M
At 8–10% market growth
18 months · Target
$22.5M+
Whole-building exit value
Entry $15.6MRetail value now12mo18mo $22.5M+
Astamar Asset Management
Ready to move
on this?
This opportunity is time-sensitive. Contact Astamar for full due diligence package,
legal structure, and investment committee materials.
Email
invest@astamarholdings.com
Phone
+1 (619) 241-4954
Office
701 Palomar Airport Road
Suite 300 · Carlsbad · CA 92011
Suite 300 · Carlsbad · CA 92011