Business | Tourism
SHUAA Saudi Hospitality Fund secures $240 million as of initial closing
SHUAA Capital Saudi Arabia cjsc attracted SR 900 million ($240 million) on Monday for the initial closing of its 'SHUAA Saudi Hospitality Fund I', a Shari'a-compliant closed-end fund which aims to develop and own seventeen hotel properties, furnished apartments, and resorts across the Kingdom of Saudi Arabia comprising 5,000 rooms. It is anticipated that a further SR 1.1 billion ($ 293.3 million) will be fully subscribed by the second and final closing.
- Staff Report
- Published: 13:19 August 25, 2008
Riyadh, Saudi Arabia: SHUAA Capital Saudi Arabia cjsc attracted SR 900 million ($240 million) on Monday for the initial closing of its 'SHUAA Saudi Hospitality Fund I', a Sharia-compliant closed-end fund which aims to develop and own seventeen hotel properties, furnished apartments, and resorts across the Kingdom of Saudi Arabia comprising 5,000 rooms.
It is anticipated that a further SR 1.1 billion ($ 293.3 million) will be fully subscribed by the second and final closing.
SHUAA Saudi Hospitality Fund I is managed by SHUAA Capital Saudi Arabia. Its goal is to acquire or develop five-star and budget hotels in the Kingdom of Saudi Arabia.
In addition, it will own 20 per cent of a new hotel management company to be incorporated in the Kingdom by UAE-based Rotana Hotel Management Corporation LLC (Rotana), the leading Pan-Arab hotel management company. This new company will operate and manage the Fund's hotel properties on an exclusive basis.
Omar Al Jaroudi, Chief Executive Officer of SHUAA Capital Saudi Arabia, said: "We are proud to have launched the first private equity fund domiciled in the Kingdom SHUAA Capital Saudi Arabia. We have structured this unique Fund to allow the investors to benefit from the extraordinary growth potential of the hospitality sector, the real estate sector, and also from a 20 per cent ownership in the Saudi Hotel Management Company."
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