Mercedes debuts $1B luxury tower in Dubai, apartments will cost up to $10M each

Published

3 months ago

January 26, 2024

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Mercedes-Benz debuted a $1 billion residential luxury tower in Dubai, where apartments are expected to cost as much as $10 million each.

Dubbed “Mercedes-Benz Places,” the upscale auto company announced its venture into the real-estate world on Instagram on Thursday, which it’s doing with the help of Emirati developer Binghatti.

The 65-story building is expected to rise approximately 1,118 feet above downtown Dubai’s bustling metro when it’s complete in the fourth quarter of 2026, according to United Arab Emirates-based business news site ZAWYA.

For reference, New York City’s Chrysler Building stands 1,048 tall.

It’s home to 150 apartments, starting at $2.7 million, with the promise of “unobstructed views of the world’s tallest tower,” the nearly 3,000-foot-tall Burj Khalifa, according to Mercedes’ website.

Per the German automaker’s Instagram post on the joint development, the glass-encased Mercedez-Benz Places — whose “distinctive elliptical exterior thats reminiscent of the flowing lines of a host of ultra-modern Mercedes-Benz cars” — is meant to “underline [the company’s] strategy to strengthen its position as the worlds most desirable automotive brand.”

Binghatti is the first of its kind for an automaker, according to Bloomberg.

Binghatti, meanwhile, also has an ongoing residential project with fellow luxury car manufacturer Bugatti, which tapped the real-estate developer for a project that will include elevators to transport cars to penthouses, which broke ground in Dubai last year, Bloomberg reported.

The firm has already sold 32 of the 182 residences in the Bugatti Residences, with buyers shelling out as much as $2,620 per square foot some of the highest prices Dubai has seen, per the outlet.

Binghatti wouldn’t disclose how many apartments had been sold in the Mercedes-branded tower, only disclosing to Bloomberg that it sold all the residences available in its first phase.

Binghatti also has a partnership with upscale jewelry and watch firm Jacob & Co. for what’s set to become the worlds tallest residential building located in the wealthy Emirati city.

Despite recent warnings that there are “massive” issues within the commercial real-estate sector, Binghatti’s chief executive Mohammed Binghatti reportedly isn’t worried about a slowdown, per Bloomberg.

The firm has spent $330 million on land in the past three months alone, and Binghatti told the outlet: Were definitely going to see more growth this year and the following year.”

There is clear wealth migration coming to Dubai and an increase in the population, which provides room for organic growth in the market,” he added.

People who come to Dubai, a lot of them already have the liquidity to deploy. They want a safe haven to invest.

Representatives for Mercedes and Binghatti did not immediately respond to The Post’s request for comment.

In the US, however, the real estate market was likened to “a slow-moving train wreck” by Larry McDonald, the founder of financial analysis firm The Bear Traps Report.

Since the pandemic, New York City has been in a so-called urban doom loop caused by an influx of working from home during the pandemic a trend that has stuck despite return-to-office mandates.

The doom loop concept is defined by empty office towers, which destroy the quality of life and eventually drive residents out.

In the Big Apple, occupancy has only bounced back to 48.4% since the pandemic.

At the start of 2020, however, office occupancy was a strong 90% before it plummeted to 10% upon the outbreak of COVID-19.

After shouldering a wave of defaults from landlords,banks are sitting on as much as $160 millionin losses on loans to the commercial real estate market, according to researchers from Columbia, Stanford, the University of Southern California, and Northwestern, per aworking paper publishedby the National Bureau of Economic Research last month.

The grim findings support an earlier calculation by Morgan Stanley that showed lenders would need to negotiate more than $1.5 trillion of their commercial real estate portfolios by the end of 2025 in order to avert defaults.

Business

Hunt calls Dorneywood summit to boost flagging UK stock market

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2 hours ago

April 27, 2024

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Hunt calls Dorneywood summit to boost flagging UK stock market

Jeremy Hunt is convening a summit aimed at enticing more companies to London’s stock market amid an accelerating exodus of businesses being picked off by overseas and financial predators.

Sky News has learnt that the Treasury has invited the bosses of some of Britain’s most prominent private companies to attend a meeting next month at Dorneywood, the chancellor’s weekend country residence.

Sources said the day-long event on 16 May would target entrepreneurs behind potential flotation candidates from the fintech and biotech sectors.

Bim Afolami, the City minister, and Lord Petitgas, the prime minister’s chief business adviser, will also be present, alongside key government officials and executives from the London Stock Exchange, the sources added.

In the invitation, a copy of which has been seen by Sky News, the Treasury said attendees and the chancellor would “discuss the UK’s capital markets and how they can support innovative, high-growth companies such as yours to achieve your growth ambitions”.

“The UK’s capital markets play a key role in our economy: driving growth, creating jobs and facilitating investment.

“The government is committed to ensuring that the UK remains the best place for companies to grow, and is already taking forward an ambitious programme of reforms to improve the competitiveness of the UK.”

Dozens of companies, including the likes of digital banks Monzo and Starling Bank, are understood to have been on the invitation list.

The Dorneywood summit has been planned for several months, according to officials, who denied that it was being staged in response to a glut of companies which have announced in recent weeks that they are in receipt of takeover bids or that they would unilaterally delist from the London market.

Approaches this week for Anglo American, the £30bn mining giant, and Darktrace, the cybersecurity company, have exacerbated the impression of a growing ‘de-equitisation’ of the UK stock market.

Although neither of those deals have yet to be formally agreed, a string of others have, including International Paper’s bid for DS Smith, the FTSE-100 paper and packaging group, which was revealed by Sky News last month.

Other companies which have agreed deals with suitors include Virgin Money, which is set to be bought by Nationwide in a £3bn deal.

Yet more, such as the Royal Mail parent International Distributions Services and the music royalties company Hipgnosis Songs Fund, are in receipt of serious takeover approaches.

While frenetic periods of mergers and acquisitions are far from uncommon, bankers and investors point to a dearth of attractive new opportunities to deploy capital because the flow of initial public offerings has been so slow.

Many of the companies that London would have hoped to attract, including the private equity firm CVC Capital Partners and the chip designer ARM Holdings, opted to list in Amsterdam and New York respectively.

The perception of London’s decline is being heightened by the decisions of boards to move their existing UK listings to other international exchanges, with TUI Travel and Flutter Entertainment, the gambling group behind Paddy Power, among those to relegate their London market presence.

Bosses of companies as large as Shell, the oil behemoth, have also begun to acknowledge publicly their frustration at what they perceive to be a gulf between their intrinsic valuation and that which the public markets are attaching to them.

Earlier this month, the boss of E-Therapeutics, a fast-growing but loss-making biotech company, described the London stock market as “broken and closed” as he announced plans to delist it and pursue a New York flotation at a future date.

This weekend, one government insider said the Dorneywood meeting would be important because it would highlight to fast-growing British companies that listing overseas “is not all milk and honey”.

A number of the UK-based businesses – such as Arrival, Cazoo and Benevolent AI – which went public in Europe and the US during the now-faded boom for special purpose acquisition companies – have seen their valuations crash, with some subsequently cancelling their listings.

“We need to explain to companies why London’s capital markets are the right place for these businesses to go public,” said one government source.

A Treasury spokesperson said: “The chancellor is meeting with a number of firms to hear their reflections on UK markets and what more the government and regulators can do to support their growth.”

Politics

Taiwan prosecutors target 20-year sentences for ACE exchange suspects

Published

2 hours ago

April 27, 2024

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Taiwan prosecutors target 20-year sentences for ACE exchange suspects

According to the prosecutors, the increased scale of the losses justifies the sentence recommendation.

Politics

Humza Yousaf: Scotland’s first minister claims Holyrood election could be called – as vote of no confidence looms

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2 hours ago

April 27, 2024

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Humza Yousaf: Scotland's first minister claims Holyrood election could be called - as vote of no confidence looms

Scotland’s First Minister Humza Yousaf claims a Holyrood election could be called as he refuses to say if he will resign if he loses a looming vote of no confidence.

Speaking exclusively to Sky News in Fife on Saturday, the SNP leader said it was “really disappointing” to learn the Greens will refuse to enter further talks to change their minds on voting against him in a ballot which could prove fatal for his leadership.

Mr Yousaf has today written to all the opposition parties, including Alex Salmond’s Alba party, at Holyrood urging them to rethink their plot to oust him.

The SNP leader said on Saturday that he was leaving it to his rivals to determine his fate.

A Green Party source said the only letter they will accept from the first minister is his resignation.

Mr Yousaf told Sky News: “Well let me say again, that would be really disappointing if that is the Greens’ position.

“As I say, I’ve reached out to them, they are saying publicly that they’re going to support a Conservative motion against independence, first minister and independence government.

“That would be, I think, a poor choice to make.”

Asked if there might be a Scottish election if he doesn’t win the vote, Mr Yousaf replied: “Can’t rule it out.”

The casting vote now looks likely to be Alba MSP Ash Regan who sensationally defected from the SNP in the wake of her defeat in the race to replace Nicola Sturgeon last year.

Sky News understands Alba is holding an emergency meeting this weekend to determine how it will cast the key vote.

When asked how SNP members would feel about being “propped up” by Mr Salmond, Mr Yousaf said: “Let me make it really, really clear, I’ll be sending out to anybody I meet with, whoever comes round that table, that these are the priorities of the SNP minority government.

“This is what we’ll be pursuing, this is what we’ll be pushing. It’ll then be up to be it Ash Regan, be it Lorna Slater, be it Patrick Harvie or any of them, to decide what button they push when it comes to the vote of no confidence.”