Freehold office space and residential penthouses on Palm Jumeirah went under the hammer at an auction managed by IFA Hotels & Resorts (IFA HR) and joint venture partner Nakheel.

The Dh300 million ($81.6 million) sale at The Palm Golden Mile marks the first availability of freehold office space at one of the world’s most prestigious new addresses.

Investors secured office space in four out of ten buildings on The Palm Golden Mile site, where the highest selling price on the smaller lots reached Dh7,250 ($1,974) per sq foot. 

Approximately 15 per cent of the total amount of office and retail space in the ten buildings was sold, which was the only available space offered during the auction.

“The success of the inaugural commercial property auction for The Palm Golden Mile has now created a benchmark for the value of office space in this premium location,” said Werner Burger, president and COO, IFA Hotels & Resorts.

“As a place to conduct business as well as an investment, office space on the Palm Jumeirah has been demonstrated as a ‘must have’ for both international and regional brands." 

"Some corporate offices are still being negotiated; we foresee multinationals setting up their corporate headquarters and acquiring full buildings in The Palm Golden Mile,” Burger added.

A capacity crowd of Middle East-based and international bidders competed aggressively at auction to secure the commercial and residential offerings on The Palm Golden Mile, located on the western portion of the Palm Jumeirah trunk. 

“The appetite shown yesterday by investors for commercial property within The Palm Golden Mile bodes extremely well for future offerings from both Nakheel and IFA Hotels & Resorts.  We anticipate that these buildings will be the premier business addresses within Dubai,” said Yousuf Kazim, managing director, Nakheel Joint Ventures. 

The Palm Golden Mile will encompass a mix of commercial space, residences and a retail area with vibrant shops, restaurant and cafes, creating some of the finest real estate offerings in one of the world’s premier resorts. The internationally known Trump International Hotel & Tower is also centrally located at the heart of The Palm Golden Mile.-TradeArabia News Service