Company Overview

Office Square, managed by Asalia Project Management Company (APMC) and backed by ASAS CAPITAL (a DFSA regulated AMC), aims to be a top global workspace brand by 2030. It offers a comprehensive suite of flexible workspace solutions including Serviced Offices, Co-working Spaces, Business Set Ups, Virtual Offices, and Meeting Spaces, complemented by premium amenities like luxury interiors, seamless IT, 24-hour security, and onsite conveniences. Additional revenue streams include business setup services (licenses, PRO, audits, taxation, HR, marketing). The operator boasts a 13-year track record, is the second largest in the UAE with 160,000 sq ft under management, has served over 8,500 clients, and currently operates across 80,000 sq ft in locations such as ALDAR HQ and Nation Towers.

Market Opportunity

The GCC market presents a significant opportunity for premium flexible workspaces, driven by: (1) limited traditional office space in prestigious locations, (2) demand for customized and flexible unit sizes in iconic areas, (3) a need for ‘plug-n-play’ solutions with five-star services, and (4) increasing adoption of hybrid work models. The region is a strategic business hub, attracting establishments due to location, tax advantages, and pro-business policies. A ‘flight to quality’ is evident in premium offices, with Grade-A occupancy at 90% in Dubai and 95% in Abu Dhabi, and rents surpassing pre-pandemic levels. A clear demand-supply gap is projected, with only 1.85 million sq. ft. of new Grade-A supply expected in 2025, much of which is already pre-leased, suggesting continued rental growth.

Operator and Track Record

The operator demonstrates a highly profitable track record, achieving gross rent spreads exceeding 300% based on historical data from Downtown Dubai and Marina locations (2014-2024), indicating significantly higher revenue per square foot compared to rent per square foot. Projections for Aldar HQ & Nation Towers in 2026 (assumed AED) include: 80% occupancy, Revenue of 18,541,858, Operating Expenses of 11,032,146, leading to an EBITDA of 7,509,713 and an EBITDA Margin of 40.5%. The projected Gross ROI is 31.0%, with a cash breakeven point at 50% occupancy.

Investing in Office Square offers exposure to a high-growth sector with strong market fundamentals in the GCC. The opportunity is backed by ASAS Capital and an experienced operator with a 13-year track record of profitability, demonstrated by historical gross rent spreads exceeding 300%. Projected financials show attractive returns with a 40.5% EBITDA margin and 31.0% Gross ROI for 2026, alongside a low cash breakeven point of 50% occupancy. The deal structure involves investors holding up to 90% equity in a Holding Company that owns the business centers. Annual returns are distributed quarterly after stabilization, with the first 15% of invested capital returned to HoldCo, and any excess split equally between HoldCo and the Property Management Company. Exit opportunities are facilitated by either the Investor or the Property Management Company, with profit at exit split equally.