IFA and Nakheel sign $42 million Palm hotel agreement

Published March 1st, 2004 - 03:00 GMT

Property developer Nakheel and Kuwait's IFA Hotels & Resorts Kuwait have announced the fifth agreement between their companies for the purchase by IFA of 150,000 square meters on the crescent at Palm Jumeirah at a cost of $42 million.

On a beach frontage of 750 meters, IFA plans to construct a luxury mixed use hotel and resort consisting of up to 1,000 rooms at an expected cost of $200 million. IFA is in the process of selecting an international hotel company to operate the property and this will be announced in the near future, stated a press release.

The location of IFA's second resort on the Palm will be adjacent to the recently announced 2,000 room Atlantis, the Palm, a resort and water theme park located at the center of the Palm Crescent, Jumeirah at an estimated cost of one billion dollars and featuring a marine habitat, marina, themed water attractions.

Two weeks ago, IFA Hotels & Resorts entered into a joint venture with the Palm developers Nakheel, for the development of two niche market shopping complexes – Souq Palm – and freehold residences – The Palm Residence Souq – covering 60,000 square meters on the trunk of the Palm Jumeirah.

IFA Hotels & Resorts is a subsidiary of the Kuwait-based International Financial Advisors Company (IFA). In 2003, IFA acquired a 50 percent shareholding in the existing Zimbali Coastal Resort in South Africa which covers 3.7 million square meters and the expansion of the resort will add a further three million square meters. — (menareport.com)