In its first ever investments into the UAE, Singapore-based property and construction major, Lum Chang Holdings, will be investing between Dh150 to Dh200 million to develop a theme hotel on The Palm, Jumeirah.

The cost estimate for the development - coming up on the trunk of the island - covers that for the land as well.

The memorandum of understanding was signed yesterday by Sultan bin Sulayem, chairman of The Palm, and David Lum, managing director of Lum Chang Holdings.

The latter will also be developing an underwater facility - named Sea Village - as part of the project. Aquariums featuring everything from seahorses to dolphins and whales will be part of the attraction.

Lum Chang was involved with the Underwater World on Sentosa Island in Singapore, which has won top billing as Asia's pre-eminent tropical aquarium.

There will also be an 'athletics club' - along the lines of the Los Angeles Athletic Club and Singapore's Tanglin Club - as part of the hotel development.

The final details of the project are still being hammered out, according to officials.

"This is going to be a very attractive investment opportunity for Lum Chang, and I am sure the project will prove beneficial for both Nakheel and them," commented bin Sulayem.

As per the current schedule, The Palm, Jumeirah is expected to be ready in 2005.

A publicly-held company, Lum Chang, which also has extensive interests across the Far East's construction sector - recorded revenues of S$66.42 million during 2002.

"Up until now, South East Asian investors have been limited to certain industries in Dubai," said Wahid Attalla, director of operations for The Palm. "This deal marks the first investment in Dubai from the South East Asian region in the leisure and entertainment industry."

LCH's contracting subsidiary – Lum Chang Building Contractors - is eyeing the possibility of making an entry into Dubai.