Abu Dhabi Investment House (ADIH) announced that the ‘Vision³’ Hospitality Development Fund (HDF) is finalizing a number of deals just weeks after its launch. The authorized billion dollar fund is targeted to raise US$ 300 million by first quarter of 2009. The current projects under consideration for HDF are all primarily based in the MENASA region and include a total of 6 projects within the Porta Moda and Entertainment City concepts, in addition to 3 other advanced stage opportunities.
Mr Rashad Y Janahi, Board Member and Managing Director – ADIH said, “The first asset class of HDF will concentrate on developing new hospitality-centric vehicles including hotels, transport solutions and apartment complexes while the second will capitalize on existing hospitality companies who show tremendous potential for growth. These new agreements are an extension of the first asset class with renowned and landmark developments across the globe. The expertise of the Vision³ alliance will be fully used to further these goals.”
Mr Mohammed Khalil Al Sayed, CEO - Ithmar Development Company, commented, “The new agreements will take HDF to the implementation stage. The project teams managing the fund all have the relevant international experience to help achieve the objectives.”
Gulf Finance House Deputy CEO Mr Mehran Jamsheer added, “We are very pleased to be making such quick progress just months after the announcement of the Fund. Given the potential within the MENASA hospitality sector we are confident of making tangible progress in the weeks and months ahead.”
Porta Moda developments are fashion and style themed mixed-use developments encompassing retail, residential, educational, hospitality and leisure elements located in Abu Dhabi, Qatar, India, Morocco, and Tunisia. Each development will feature some of the major international brands such as Christian Dior, Ralf Lauren, Fendi, V&A, Neiman Marcus, Louis Vuitton, London Fashion Week, Rhode Island School of Design and many more renowned names who will add further value through their consultancy in style and design.
The Entertainment City is another innovative mixed-use development concept with a focus on entertainment. An Entertainment City Advisory Board has been created bringing together leaders from international entertainment companies and institutions who will advise and consult on the implementation of each development. The first Entertainment City is currently underway in Qatar on an area covering one million square meters while Entertainment City India’s master plan is currently being finalized.
Beirut Gate, a further mixed use real estate development that will be strategically located in the heart of downtown Beirut, comprised of residential, commercial and retail elements.
The fifth project is a theme park with various aqua facilities and rides providing entertainment for the whole family. This is considered to be the largest theme park in its segment throughout the GCC region and is operated by one of the leading theme park management companies.
A hotel and executive apartments development completes the projects currently under consideration. Developed on a strategic beach front location in the GCC, the 5-star hotel and executive apartment project will target high-end corporate and leisure visitors.
These developments and a number of others under consideration respond to the demands of a new generation of regional tourists. The GCC has witnessed considerable growth over the past few recording an average GDP growth of 5.7% compared with 3.7% for the rest of the world. This prosperity has in turn attracted high levels of Foreign Direct Investment and triggered greater movement amongst societies based in the Middle East, North African and South Asian (MENASA) region. The United Nations World Tourism Organization has determined that MENASA is in the midst of the fastest growth trend in global tourism. HDF has been conceived to create value through the provision of a range of hospitality related initiatives designed to serve the increased number of regional travelers and deliver high returns to investors.
HDF is one of the initiatives conceived by the ‘Vision³’ strategic alliance between ADIH, Gulf Finance House and Ithmaar Bank. The goal of the alliance is to leverage their combined experience across a variety of sectors in the identification of unique investment opportunities within the hospitality, infrastructure and agricultural sectors. Alongside HDF, in August of this year the alliance launched InfraCapital, the GGC’s first Islamic investment bank focused on infrastructure and AgriCap, a fund given over to the development of numerous agricultural projects.
