The much-awaited auction of Lamcy Plaza has ended without success for the third time. Notably, it was one of the popular community malls in Dubai. However, the minimum bid for this auction was set at Dh185 million. Still, no buyers came for it, which leaves the future of this iconic landmark uncertain.
A Once-Thriving Mall Stuck in Limbo
Lamcy Plaza has been closed since a devastating fire in 2017. However, it was remembered fondly by many Dubai residents. Now, it is struggling to find a new buyer who is willing to take acquisition and the massive restoration cost.
Industry experts estimated that anyone could need Dh50 to 100 million to bring the property back into its operations due to renovations and upgrades. Thus, this factor is making the actual investment far higher than the price asked in the auction.
Why Investors Are Hesitant
Industry sources reveal that the extra funds needed to get the property back into its shape are the main challenge. Anyone will have to start repairing and reopen instantly if they want to recover their investment.
The first auction attempt last year set the bidding price at Dh210. However, the interest was less than as well. Now, analysts believe that a private sale might be the ideal option to move forward.
The Potential for a Strong Comeback
Despite the challenges, Lamcy Plaza still holds a strong potential because it was one of the first neighbourhood shopping centres in Dubai. So, it could easily attract visitors with the right tenant mix.
Retailers also suggest that reopened Lamcy could become a hub for gold and jewelry shops. So, it can be an alternative to Meena Bazar of Dubai and Karama. Therefore, refurbished Lamcy Plaza could reclaim its position in the shopping culture of the city because Dubai’s retail industry continues to expand.
What’s Next for Lamcy Plaza?
Industry experts believed that a group of buyers could be the key to reviving the mall because the shared investment would ease the burden of high innovation costs. In addition, banks or stakeholders might consider offering amaze payments to attract buyers.
As of now, the waiting game for the reopening of the Lamcy Plaza continues. Moreover, it has been over eight years since its closure after the fire. Still, the mall remains one of the most recognizable yet dormant real estate assets, which is waiting for its second chance.
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[…] Lamcy Plaza Auction Fails Again as Dubai Iconic Mall Awaits Revival […]