For Sale Licensed Marble Factory in ICAD 1, Mussaffah, Abu Dhabi.
Business description:
- A limited liability company, LLC (The Company), with an industrial license for stone and marble cutting, shaping, and finishing, rented an industrial plot of land in the Higher Corporation for Specialized Economic Zones in the Musaffah area in Abu Dhabi. The area of the plot is 5558.27 sqm (equivalent to 59829 sqft) and the lease (Musataha Agreement) is for 50 years, starting from 17/12/2006, with a yearly rent of AED 59593, including common charges and VAT, payable in 4 equal installments. The lease is renewable upon expiry after 32 years from to date for another 50 years. (total of 82 years remaining)
- “ Musataha Agreement creates a real property right (a right in rem) which entitles its holder to construct a building or to invest in, mortgage, lease, sell or purchase a plot of land belonging to a third party for a period of 50 years. This right is renewable once by mutual consent of the parties for a further period of 50 years.” The yearly rent maybe subject to a discretional increase by a factor of 1.5 every 5 years, which is equal to an average increase of 3% per year.
- The Musataha Agreement is under the name of a sole ownership limited liability company and by transferring its shares to the new buyer, the lease and all properties become the ownership of the new buyer.
- The Company erected a showroom, offices and large hangers on the plot of land. The Company also equipped the factory with machinery and equipment. A perimeter wall is also installed around the plot. It has two electric meters, one high voltage and one low voltage.
- The license enjoys facilities subsidized by the zone as customs exemptions, visas and employment permit at lower cost than as charged in the mainland in Abu Dhabi and lower rates for utility bills including water and electricity, etc..
- The license is free from any debts or lawsuits. The business stopped in the last two years. Rerunning the business may require funding for recruiting new teams and maintaining the equipment and premises. (estimate around 1.5 million dirhams)
- An annual rent of AED 59593 is equal to AED 10.72 per sqm or 1 AED per sqft.
- The sale of the company shares to a buyer includes the license and the lease and on top all machinery, equipment, vehicles, and tools will be added to the sale for free, all of which will be handed over at their present conditions.
- The sale is for US$ 2,500,000 , equivalent to AED 9,200,000.
- AED 9,200,000 distributed over 82 years of lease, is around AED 97561, added to it the yearly rent of AED 59593, is equal to a total of around AED 157,153 per year or around AED 28.27 per sqm per year. (AED 2.62 per sqft per year). In comparison, similar plots in the same area of ICAD1, without license and equipment, are subleased at around AED 1,500,000 per year or for AED 270 per sqm per year (AED 25 per sqft)
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- Up dated 14-9-2024
