The Residences at Al Barari · Type B Villa
Executive summary
Palm & Peak proposes to acquire, complete and resell a 6-bedroom Type B villa in The Residences at Al Barari, Dubai's most exclusive low-density eco-community. The villa is a prime corner unit backing the botanical Woodland garden, delivered as shell and core on a 14,719 sqft plot with 14,919 sqft of built-up area, two basement levels and a lift already installed. It is acquired at AED 38.0M against a AED 40.0M asking price, finished through a AED 17.0M full construction and fit-out programme (which, starting from shell and core, runs roughly AED 1.0M to 1.5M and about six weeks below a finished-villa refit), extended to 17,000 sqft of GFA, and resold at a target of AED 80.0M within a 12 to 18 month window.
The exit is evidenced. A renovated 6-bedroom villa at Desert Leaf 5, on an almost identical 14,918 sqft BUA footprint, sold for AED 72.0M in May 2026, and a comparable 6-bedroom Jasmine Leaf 5 villa sold for AED 80.0M, both registered transactions. Type B is bought below the offers already in hand (AED 37.0M and AED 37.25M), finished to the standard the renovated set commands, and positioned to sell at roughly AED 4,706 per sqft on post-extension BUA, in line with the Jasmine Leaf 5 renovated benchmark that printed AED 80.0M.
Investment thesis
- Evidenced exit. Renovated 6-bed Al Barari villas printed AED 69M to 80M in the last 12 months; the closest twin (Desert Leaf 5, 14,918 BUA) sold at AED 72.0M in May 2026.
- Entry below competing bids. Secured at AED 38.0M against an AED 40.0M ask, with two live offers already at AED 37.0M and AED 37.25M underpinning the floor.
- Blank canvas. Delivered shell and core, so the full interior is specified to the renovated-comp standard with no demolition drag; lift and two basements already in place.
- Shell & core edge. Buying unfinished saves roughly AED 1.0M to 1.5M in construction versus stripping out and refitting a finished villa, and takes about six weeks off the programme: no demolition, straight to fit-out.
- Scarce, trophy address. Al Barari is 60%+ green space, tightly supplied, with a long record of price resilience; the corner Woodland-garden plot is a genuine premium position.
- Flexible structure. Underwritten all-equity, with an optional senior facility at 75% of property cost priced at 9-12% p.a.; both scenarios run live in the returns model. Single asset, single exit.
The asset
| Community | The Residences at Al Barari |
| Type | Type B Villa (corner unit) |
| Configuration | 6 en-suite Bed, staff quarters |
| Levels | 2 basements, lift installed |
| Condition | Shell & core (to be finished) |
| Outlook | Backing Woodland botanical garden |
| Plot area | 14,719 sqft |
| BUA - existing | 14,919 sqft |
| Extension (to GFA cap) | +2,081 sqft |
| BUA - post-extension | 17,000 sqft |
| Renovated comp band | ~4,200-4,900 AED/sqft BUA |
The villa
Rear elevation & pool
Front / corner approach
Garden & pool
Reception hall
Stair & lift core
Master bathroomThe Residences at Al Barari, Type B. Photography from the Type B listing pack.
Business plan
Acquire
Purchase at AED 38.0M, below the AED 40.0M ask and just above the two live bids. Plot 14,719 sqft, BUA 14,919 sqft, 6-bedroom shell and core. Transfer registered through the Dubai Land Department; funded all-equity or with a 75% senior facility on property cost, per the selected financing scenario.
Build & extend
AED 17.0M full construction and fit-out of the shell, finished to the renovated-comp standard, plus a permitted GFA extension to 17,000 sqft at AED 1,800/sqft. Circa 12 to 15 months of works. Starting from shell and core (no demolition) trims roughly AED 1.0M to 1.5M off the build and about six weeks off the timeline versus refurbishing a finished villa.
Resell
List at a target AED 80.0M, roughly 4,706 AED/sqft on post-extension BUA, level with the top of the renovated 6-bed set (Jasmine Leaf 5 at AED 80.0M). The prime corner Woodland-garden position and 17,000 sqft support the level.
Returns model · interactive
Fee & cost assumptions
Move any slider to test the deal live. The all-equity base case reproduces the underwriting model exactly. In the debt scenario the senior facility funds the chosen share of property cost (purchase + DLD + buyer agent); construction, holding and fees are funded by equity. Interest accrues simple, is rolled up and repaid with principal at exit.
Where the money goes · cost-to-profit bridge
Profit distribution · LP / GP waterfall
The LP funds 100% of the capital. Profit is split on the project's annualised IRR under a standard LP / GP waterfall, stepping the GP's promote up as returns rise.
Net profit split · LP vs GP
Sensitivity · exit price and time to sell
Proof of exit · the renovated 6-bed evidence band
The AED 80.0M target is anchored to the top of the registered renovated 6-bedroom Al Barari set: a Jasmine Leaf 5 6-bed sold at AED 80.0M and a near-identical Desert Leaf 5 (14,918 sqft BUA) at AED 72.0M. Our corner Woodland-garden position and 17,000 sqft post-extension BUA support the level, with the sensitivity grid showing the deal stays profitable well below it.
The twin comp (Desert Leaf 5, 14,918 BUA, AED 72.0M, May-2026) and the 6-bed Jasmine Leaf 5 (AED 80.0M) are highlighted in the table below.
Comparable evidence · Al Barari renovated sales
| Date | Sub location | Beds | Plot sqft | BUA sqft | Price (AED) | AED/sqft BUA |
|---|
Source: Property Monitor / Savills, registered Al Barari transactions. AED/sqft computed on BUA. Highlighted rows: Desert Leaf 5 (14,918 BUA, AED 72.0M) and Jasmine Leaf 5 6-bed (AED 80.0M). The 22-Jan Jasmine Leaf 5 BUA is corrected to 15,000 sqft.
Key risks and mitigants
| Risk | Mitigant |
|---|---|
| Exit price sits toward the top of the range | Anchored between two registered renovated 6-bed comps (AED 72.0M and AED 80.0M). Sensitivity shows positive returns down to an AED 65.0M exit. |
| Construction cost overrun on a shell & core build | Fixed-scope AED 17.0M budget with staged contractor draws and a held contingency; scope specified before acquisition against a known finished standard. |
| Time to sell extends | Al Barari villas are trophy, low-supply stock. IRR remains positive across the full 12 to 24 month grid above; holding cost is modest relative to deal size. |
| Extension / GFA approval | Extension sized to a permitted 2,081 sqft at AED 1,800/sqft; the base exit does not depend on maximising GFA beyond 17,000 sqft. |
| Broader market softening | Entry at AED 38.0M is below competing bids and well under the renovated exit; Al Barari's scarcity and end-user base cushion liquidity. |
Indicative timeline
Month 0: acquire and register transfer. Months 1 to 13: construction, fit-out and permitted GFA extension of the shell. Months 13 to 16: list, market and secure buyer. Full round-trip targeted within 12 to 18 months, consistent with the Al Barari renovated-villa cycle.