Structure
Club deals in Dubai real estate: pooled access to institutional tickets
A club deal pools a small group of investors into a single transaction that none of them would underwrite alone. In Dubai this usually means a bulk allocation, a development tranche, or a secured lending position against property — tickets that start where individual retail purchases stop.
How the structure works
Capital is committed to a defined vehicle with a defined asset, a defined term and a defined return mechanism. Investors are not buying a fund with discretionary mandate; they see the specific asset before subscribing.
Returns are either fixed-coupon, where the sponsor pays an agreed rate over the term, or equity participation in the exit. Fixed structures are usually secured; equity structures are not.
Security and seniority
The question that determines your risk is where you sit in the capital stack. A first-lien position against registered property ranks ahead of equity and mezzanine debt in a default. Mezzanine and preferred equity pay more and recover less.
Ask for the security documentation, the registered charge, and the loan-to-value at entry. A first-lien at 60% LTV and a first-lien at 85% LTV are different products with the same label.
Term, liquidity and exit
Typical terms run 12 to 36 months. There is no secondary market: assume your capital is locked for the full term and price the illiquidity accordingly.
Exit depends on the sponsor refinancing, selling the asset, or completing and handing over units. Delays in Dubai construction are common enough that a term extension clause should be read closely, not skimmed.
What to price in
Sponsor track record through a full cycle. Independent valuation, not sponsor-supplied. Fee layering between the sponsor and the vehicle. Currency: AED is pegged to USD, so EUR-based investors carry USD exposure.
FAQ
What is a real estate club deal?
A private transaction where a small group of investors pool capital into one identified asset, with agreed terms, security and exit — as opposed to a blind-pool fund.
What is the minimum ticket for a Dubai club deal?
Commonly USD 100,000 and upwards, depending on the structure and the total raise.
Are club deal returns guaranteed?
No. A fixed coupon is a contractual obligation of the sponsor, not a guarantee. Recovery in a default depends on the security and the seniority of your position.
Can I exit a club deal early?
Generally no. These structures are illiquid for the stated term and have no secondary market.
See current structures
We only present deals we have underwritten independently, with the security documentation attached.
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