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Distressed Mortgage Buyout. JVC.
Локация: Jumeirah Village Circle (JVC), 1-BR Apartment.
  • 740,000 AED
    Entry (Asset Price)
  • 950,000 AED
    Exit (Selling Price)
  • 90 days
    Cycle time
  • 19.0%
    ROI (Net)

Problem

The expat owner faced a life force majeure (job loss) and foreclosure proceedings initiated by the bank.

Market Context
The average price of similar apartments in this building (Market Value) was AED 1,000,000.

Blocker
A typical purchase and sale transaction for a mortgaged apartment in Dubai takes 8-10 weeks (blocking funds, repayment, and waiting for documents). The seller didn't have this time—the bank required the loan to be closed within 5 days.

What did Kentavra do?

We acted as a provider of instant liquidity, replacing the bank.
Day 1 (Due Diligence)
Legal review of the case at the RDC (Rental Dispute Center) and DLD. It was confirmed that the mortgage is the only encumbrance, and there are no other debts.
Day 2 (Acquisition)
Full repayment of the bank debt using Kentavra's own funds. We effectively purchased the seller's obligations, receiving a 26% discount to the market price.
Month 1-2 (Legal & Holding)
Obtaining a No Debt Letter (NOC), removing the mortgage (Mortgage Release) and issuing a clean Title Deed to the company.
Month 3 (Exit)
The apartment was listed for sale at AED 950,000 (in a market of 1 million). This secured a sale to the first interested buyer within two weeks.

Economics of the transaction

  • Selling price

    950,000 AED

  • Direct input costs

    Purchase price: AED 740,000
    DLD (4%) + Trustee fees: AED 31,500
    Agent commission (3%): AED 22,200

  • Operating expenses

    Service Charges: AED 4,500
    Cleaning and Preparation: AED 1,500

  • Total full cost

    799,700 AED

  • Net profit

    150,300 AED