First operational ownership scheme for UAE
Hospitality brand First and Foremost has been given its first contract by Oceana Suites on the Palm Jumeirah.
The three-way agreement also involves Seven Tides, the owner of the new development, and Oceana resort property management company Asteco.
The Residence Rental Programme – the first operational scheme in the region – has all the advantages of timeshare and fractional ownership plans, according to the company.
Investors can use their property when convenient to them, but have it professionally managed for the remainder of the year, recouping average estimated returns of 8% or more annually can be realised.
“This is a win-win situation for investors/owners as they occupy their apartment for an agreed period of time then lease it back to us for the remaining months of the year, without the headache of having to deal with clients’ complaints, collecting rent or maintenance on the property,” said Ian Hollingdale, head of project for property management company Asteco.
“This innovative idea is perfect for investors looking to maximise the full potential of their asset and with furnishings, insurance and warranties taken care of, owners can relax safe in the knowledge that no nasty surprises await them at the end of the tenancy.”
Oceana Suites is a 644-apartment development located on the trunk of Palm Jumeirah, featuring a private infinity pool, lazy river and beach, waterside promenade and jogging track, landscaped recreation areas and a gymnasium. A five-star hotel operated by Movenpick will be opened within the complex next year.
Asteco, originally appointed to sell and handover the apartments to the respective owners, has now almost completed the project and will now assume the role of property and leasing manager for the entire resort, including the First and Foremost branded apartments.
The Residence Rental Programme has been designed around owners who intend to utilise their residence on a periodic basis only and want their apartment professionally managed and marketed. They will also be able to take advantage of First & Foremost’s Travel Trade partnerships, global distribution and internet booking systems to maximise their rental revenue.
Michael Scully, CEO, First & Foremost Hotels and Resorts said: “With our extensive partners in apartment hotel management and the travel trade industry, this will become one of First & Foremost’s flagship offerings, allowing investors to take full advantage of this prime resort location, enhanced by growing interest from international tour operators.
“However, thanks to its proximity to Dubai’s business centres including Dubai Internet and Media City and Jebel Ali, we expect Oceana Suites to also appeal to businessmen as an initial base when relocating to the emirate, or completing short-term projects.”