Key Details:

1. 
   

   Location & Size:

   
   
   
   
   
   • Size: 1,000 sq. ft.
   
   
   • Location: International City Phase 2, a residential and commercial area with a diverse population and steady foot traffic.
   
   
   
   


2. 
   

   Financials:

   
   
   
   
   
   • Rent: AED 120,000 per year (AED 10,000 per month).
   
   
   • Selling Price: AED 350,000 (including stock).
   
   
   • Monthly Sales: AED 30,000.
   
   
   • Monthly Expenses: To be discussed (key information to evaluate profitability).
   
   
   • Stock Value: AED 100,000 worth of inventory.
   
   
   • Agency Fees: 10% of the selling price + VAT (AED 35,000 + VAT).
   
   
   
   

Profitability Analysis:

• Monthly Sales: AED 30,000.


• Rent: AED 10,000 per month, which means the sales must cover rent and other operational costs, leaving enough for profits.


• Monthly Expenses: Not disclosed. However, expenses could include salaries, utilities, and other operating costs. It’s critical to obtain this information before proceeding with any deal to gauge the actual net profit.

Return on Investment (ROI):

• Selling Price: AED 350,000 (including stock). The stock, valued at AED 100,000, covers a significant portion of the selling price.


• Sales vs. Expenses: Assuming monthly sales are AED 30,000 and rent is AED 10,000, the remaining monthly revenue must cover all other expenses (salaries, utilities, etc.), which are yet to be discussed. The profit margin will depend heavily on these other costs.

Considerations:

1. 
   

   Clarify Monthly Expenses: Understanding the full range of expenses is crucial. Without it, the profitability and true operating costs remain unclear.

   
   


2. 
   

   ROI Potential: The business appears reasonably priced at AED 350,000, with a stock value of AED 100,000. However, monthly sales of AED 30,000 seem moderate for a mini-mart, and profitability will depend on how low or high the monthly expenses are.

   
   


3. 
   

   Agency Fees: The agency fees amount to AED 35,000 + VAT, which is an additional cost to consider when purchasing.

   
   

About RVRG Real Estate: RVRG Real Estate specializes in commercial and residential properties across the UAE, offering comprehensive real estate solutions. Our services include property sales, where we facilitate smooth transactions ensuring sellers connect with qualified investors. We assist buyers and investors in identifying lucrative investment opportunities, providing tailored leasing solutions to maximize returns. Our market analysis guides informed decision-making, while negotiation support ensures favorable terms. Additionally, our property management services efficiently handle diverse portfolios, ensuring client satisfaction and value creation.