HJ Real E�tate I�ve�t�e�t Opportu�ity Investment opportunity in our Mixed-Use leasing business project. by suprabha kashyap SK I�ve�t�e�t� � Part�er��ip� Head - HJ Real E�tate�.
[Audio] We are partnering with HJ Real Estate, which has established excellence, a strong presence in the UAE, and a worldwide presence in 22 offices across six major countries. This firm is one of the most reputed real estate companies in the UAE, operational since 2012, with a team of more than 350 trained real estate professionals..
Our Bu�i�e��.
[Audio] We are presenting a unique investment opportunity in a mixed-use leasing business project. As a leading player in the market, we have established a strong presence in Dubai's real estate landscape. Our robust portfolio showcases a strategic mix of premium residential and commercial properties across the city's most sought-after locations. With consistent growth in our assets under management, we maintain high occupancy rates through professional property management and strategic asset positioning. This project offers a compelling investment proposition, with a projected return on investment of 92%. We believe this opportunity has the potential to deliver strong returns for investors, while also providing a stable and secure investment vehicle..
[Audio] We are offering a unique investment opportunity through our partnership structure. With a minimum investment of AED 5 million, you will have the chance to participate in the growth of our mixed-use leasing business. As the investor, you will hold 100% of the capital investment, ensuring maximum returns on your investment. Our joint LLC company will manage all operations, providing transparency and accountability throughout the process. You will have the option to choose from two different profit-sharing structures: 50/50 or a guaranteed 35% annual return. This means you can expect consistent and predictable returns on your investment. As part of our partnership, you will also benefit from our expertise in managing day-to-day operations, including documentation, legal, maintenance, tenants, leasing, Ejari, and renewals. Our experienced team will handle all aspects of the business, ensuring seamless execution and minimizing risks. With our partnership, you will have access to a comprehensive suite of services, including shared or single cheques, signing authority, and company formation costs. All financial transactions will be managed through the joint company account, providing a clear and transparent record of your investment..
[Audio] We will form a joint company between HJR and the Investor 1, requiring a capital investment of approximately 5 million AED. With this investment, we will take over Building 1 on lease in Month 1, with an annual rent cost of 10 million. In the 4th month, we will take over Building 2, and pay and receive rents quarterly. The profit sharing ratio will be 50:50 or a fixed 35% return to the investor. HJR will manage the operations, charging 10% of the revenue as operating costs, which include legal, maintenance, tenant leasing, renewals, Ejari, and other expenses. The entire rental income will go into the joint company's account, with joint or single cheque signing as per understanding. With expected rental income of 14 million per annum per building, the total rental income for the first year will be 14 million plus 10.5 million from Building 2, acquired in Q2. Operational expenses will be around 2.5 million, resulting in an expected net profit of 4.6 million for the first year. If the investor chooses the partnership and profit-sharing option, they can expect a net profit of 2.3 million per annum. Alternatively, if they opt for the fixed return option, they can expect a return of 1.75 million per annum..
[Audio] The mixed-use leasing business project provides a unique chance for investors to engage in a profitable endeavour. With a strong connection to the local area and experienced experts, we have secured pre-leasing agreements for 90-95% of the building spaces, guaranteeing a consistent flow of revenue. This strategic advantage enables us to concentrate on managing daily operations, while our partners can profit from their investment. With a guaranteed 35% annual return, this partnership offers a persuasive proposal for those seeking to diversify their portfolios. By investing in this project, one will not only receive rental income but also appreciate the prestige of being part of a thriving and expanding business..
[Audio] Our financial forecast for the period 2025-2026 indicates a substantial increase in revenue, accompanied by controlled expenses. With a robust foundation of pre-leased building spaces, our skilled team will effectively manage operations, ensuring a significant boost in revenue while maintaining expenses within limits. As we progress, our cash flow will continue to expand, providing a stable base for future growth and profitability..
[Audio] We are projecting a significant increase in revenue for the upcoming fiscal year, with a total of AED28.3 million expected. This figure is comprised of quarterly rentals from two properties, with Building One generating AED14 million and Building Two, acquired in the second quarter, contributing AED10.5 million. Furthermore, security deposits totaling AED1.4 million for each building will also contribute to this impressive revenue stream. With these figures in mind, it's clear that our mixed-use leasing business is poised for success..
[Audio] Our projected expenses for FY2026 approximate AED 23.73 million. Rental costs for two buildings comprise the majority of this figure, with Building 1 accounting for AED 10 million and Building 2, which starts in Q2, valued at AED 7.5 million. We require security deposits of 10% for each building, totalling AED 2 million. Additionally, operational expenses are calculated at 10% of total revenue, amounting to AED 2.83 million. Moreover, our forecast includes security deposit refunds of AED 1.4 million to be paid at the end of this period..
[Audio] The projected 92% ROI demonstrates strong financial efficiency and validates our business model. With a first-year return of 46%, this investment offers a significant opportunity for growth. Our dual-building rental strategy and efficient operational management ensure a robust financial performance. With an internal rate of return of 45-50% over three years, this investment provides a compelling reason to consider partnering with us..
[Audio] Our financial projections indicate a strong performance for the fiscal year 2025-26, with a total revenue of AED28.3 million. This figure is achieved through the combined efforts of our two buildings, generating AED14 million and AED10.5 million respectively. In addition, we have secured AED2.8 million in security deposits and received AED1 million in refunds. Our total expenses for the period amount to AED23.7 million, resulting in a net profit of AED4.6 million. This represents a healthy 16% profit margin, demonstrating the success of our dual-building rental strategy and cost management approach..
[Audio] Our company's strong cash position is driven by a combination of healthy operational cash flow and financing activities. We have achieved a net cash inflow of AED 4.6 million from our ongoing operations, which has been further boosted by AED 5 million in financing activities. As a result, we have ended the period with a robust cash balance of AED 9.6 million, providing us with the necessary resources to continue growing our business and delivering value to our stakeholders..
[Audio] Dubai's leasing business stands out from other investment opportunities due to its exceptional annual return of 46%. Compared to index funds, forex trading, cryptocurrency, stock market indexes, bank fixed deposits, and property purchases, this business model offers unparalleled returns while managing risks through professional management. With a significant advantage over other investment options, Dubai's leasing business is an attractive choice for investors seeking stable and profitable returns..
[Audio] We have a unique investment opportunity in a thriving mixed-use leasing business project, which boasts a strong market position, attractive returns, solid financial health, and exceptional operational performance. The venture offers a compelling proposition for savvy investors, as it leverages our expertise in real estate development and leasing to create a robust business model that delivers sustainable returns through a combination of prime market positioning and efficient operational management. With a projected total ROI of 92%, this investment has the potential to generate significant returns for investors. Whether seeking to diversify their portfolio or capitalize on the growth potential of the UAE real estate market, this opportunity should not be overlooked..
[Audio] Our competitive advantage lies in our ability to secure pre-leases for 90-95% of the building spaces before taking over the building operations. This allows us to have a strong foundation for our business, ensuring a steady stream of revenue from day one. Our team of experienced professionals has decades of expertise in the industry, giving us the edge we need to identify and capitalize on the most attractive opportunities. With strong local ties, we're able to source deals with high returns on investment, making our partnership a lucrative one for investors..
[Audio] In the United Arab Emirates, a distinct leasing model is emerging. Dubai's high-growth market, strong occupancy, and higher retail yields compared to other major cities make it an attractive location for investment. The metro area is experiencing rapid growth, with a 12.3% population increase since 2020, resulting in nearly full residential spaces and occupancy rates standing high at 97%. These numbers are expected to almost double, reaching 5.8 million by 2040. This presents a profitable opportunity for investors to capitalize on the thriving real estate market in the UAE..
[Audio] Dubai's real estate market has demonstrated exceptional performance, particularly in terms of rental yield growth. According to the graph, Dubai stands out with a remarkable 25% increase in rental prices, far surpassing other major global cities such as New York, London, and Sydney. Interestingly, Singapore has experienced a decline in rental prices, attributed to reduced demand. These figures underscore the attractiveness of Dubai as an investment destination, offering investors a unique opportunity to capitalize on the city's thriving economy. With its strategic location, world-class infrastructure, and favorable business environment, Dubai is poised to continue driving growth in the real estate sector..
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[Audio] For more information, please contact Suprabha Kashyap, our institutional partner. She can be reached at (+971) 589853803 or via email at suprabha.kashyap@hjrealestates.com. Our website is available at www.hjrealestates.com, and we also have social media presence on Facebook, Instagram, LinkedIn, YouTube, and TikTok..