Dubai-based property developer Damac Properties won a $120 million bid to acquire land in the upscale Miami district of Surfside, where it plans to build a luxury Cavalli-branded condominium project.
The property, set on 1.8 acres of land, will offer residents 61 metres of seafront and access to South Beach and Bal Harbour. It will be Damac's first project in the US.
“Damac Properties has long been eyeing development opportunities in Miami,” said chairman and founder Hussain Sajwani on Friday.
“We see the city, which is known for being a luxury and fashion centre, as a natural fit for our company, which has an established reputation for its branded luxury offerings.”
As the world's largest economy, the US has been among the preferred investment destinations for Gulf investors, who, over the years, have invested in everything from technology and property to private equity and financial markets.
In 2020, investors from the UAE accounted for about $45 billion of foreign direct investment flows to the US.
The Abu Dhabi Investment Authority acquired full ownership of 330 Madison Avenue in New York — an office block close to Grand Central Station — in 2019.
Bahrain-based Investcorp, the alternative asset manager that counts Mubadala Investment Company as its biggest shareholder, conducted property deals worth $4bn in the US in 2021, tapping into demand for residential and industrial properties.
Damac has been expanding its global footprint in recent years. In the UK, it has the Nine Elms project in London, which has Versace interiors, while it is also developing a luxury resort in the Maldives to be operated by global hotel brand Mandarin International.
“Our global expansion into the US marks a major milestone and demonstrates that Damac is a force to be reckoned with,” said Mr Sajwani. “This is an exciting time, and we have a lot in store.”
Last month, it announced it will accept certain cryptocurrencies for property transactions as part of efforts to offer more flexibility to investors, while Damac Group, parent company of Damac Properties, said it plans to invest $100m to build “digital cities” in the metaverse.