How choosing Senaeyat can reduce your Capex

If you are looking to take advantage of the many benefits that Dubai offers global businesses, then you are not alone, with dozens of the world’s leading companies choosing the region as their logistical base.

As one of the fastest growing economies in the world, demand for world-leading facilities is increasing as businesses look to either rent or purchase a warehouse in the UAE in order to meet their requirements.

With such high demand, landlords are offering tenants incentives for including options such as rent-breaks, long-term leases and even discounts. However whilst these might seem attractive initially, rent is still incredibly high. Traditionally, if you did not want to rent then the only other option for you is to purchase; which requires a large amount of initial capital, a luxury many businesses do not have.

These investments, or capital expenditures (capex), can be a difficult decision for businesses to make and require big investment. Here at Senaeyat we are offering businesses an alternative solution when it comes to purchasing a facility. As the first lease to own warehouse provider in the region, our unique concept allows businesses to own their own facility after a ten year repayment plan.

This unique prospect of purchasing a Senaeyat warehouse can actually help to significantly reduce the capex costs for many businesses, particularly when compared to purchasing a facility outright via bank funding. Here at Senaeyat, you can begin your journey with us for just a 2% down payment, whereas purchasing a facility using a finance option will require a 30% down payment and on top of that customers have an interest rate of between 11 and 14%.

Utilising finance from a bank will see them then pay the remaining 70%, with interest on the repayments typically around 7% to 9%. In addition, you would then have monthly land rent to pay as well, increasing your costs further. On the other hand, with Senaeyat you will simply be paying a yearly fee over the ten year period until the warehouse is signed over to you.

When looking at the total cost of the three options, renting, purchasing or using Senaeyat, over a ten year period then you might be surprised. Whilst renting a warehouse facility in Dubai does work out the cheaper option, at around 5-7 million over the decade, you do not actually have any assets at the end of that period.

Purchasing a facility outright using a bank loan will cost you five million for the property but then with added fees this cost rises to around 7,500,000. With Senaeyat, the overall cost for the facility is around ten million, however this is broken down into far more manageable repayments. So if you are looking to reduce your capex costs whilst still being able to take advantage of a world leading warehouse facility, get in touch with Senaeyat today. Our state of the art properties are built to your requirements, with sizes starting from 20,000 square foot, and are based in the popular Dubai Industrial Park; giving our customers easy access to the Al Maktoum Airport, Jebel Ali Port and every major road.

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