A coworking space in Dubai: from concept to sale to a strategic investor
About 1,000 m² of premium flexible offices in a Dubai technology free zone. We developed the concept, raised the financing, managed construction and leasing, after which the project passed to a strategic investor.
Carte Capital · 4 min read
≈1,000 m²premium flexible offices
4stages: concept, capital, build, leasing
The idea
A coworking space earns money not by renting square metres but by selling workstations and services: private offices, open desks, meeting rooms, a registered address. The same floor run as flexible offices earns more than under a conventional lease, but it needs investment in fit-out, furniture and a team. A running coworking space is sold as a business, not as premises.
Structure
- Location: an office tower in a Dubai technology free zone, a cluster whose companies need offices with flexible terms and a free zone licence.
- Concept: about 1,000 m² of premium flexible offices: private offices for small teams, shared areas and meeting rooms.
- Capital: financing for fit-out and launch raised for the project.
- Operations: construction management, then sales of workspace and lease management.
- Exit: the project passed to a strategic investor.
Parties
| Party | Role |
|---|---|
| Carte | concept, fundraising, construction and leasing management |
| Project investors | capital for fit-out and launch |
| Strategic investor | buyer of the project |
Numbers
About 1,000 m². The commercial terms of the sale are not disclosed.
Risks
- Lease-up: a coworking space runs at a loss in its first months until occupancy builds.
- Short contracts: members can leave on a month’s notice, so income is less stable than under long leases. The business’s value rests on proven occupancy.
- The head lease: if the space is leased, the term and conditions of the lease cap both the value of the business and the exit.
Lessons
- In flexible offices value is created by operations: occupancy, price per desk and service.
- A sale to a strategic investor is possible once occupancy and income are proven, not at the concept stage.
- A strong location with clear demand, here a technology cluster, shortens lease-up.