|
Dubai: Shuaa Partners, the private equity arm of Shuaa Capital, said it has attracted $165 million for its $200-million hospitality fund.
The fund had the first closing on June 30.
"The fund has received interest in excess of $240 million and over $165 million in aggregate capital commitments, and hence anticipates the remaining $35 million will be fully subscribed before second and final closing," the company said in a statement yesterday.
The Shuaa Hospitality Fund I is the third private equity fund sponsored by Shuaa Capital.
Shuaa Partners manages the $200 million Shuaa Partners Fund I, which has made five investments within the GCC and exited two.
It also manages the $100 million Frontier Opportunities Fund I, which has completed its first investment and hopes to make investments in Lebanon, Syria and Jordan.
The hospitality fund focuses on the Middle East and North Africa, particularly on Gulf countries, the Levant and Egypt.
Shuaa said it will invest into the development of a diversified portfolio of five and four-star hotels, resorts, serviced apartments and budget business hotel properties which will be managed by Rotana Hotel Management Corporation.
An amount of $53 million will be allocated to the Sharia-compliant Shuaa Saudi Hospitality Fund I, with the aim of developing 17 hotels with 5,000 rooms in Saudi Arabia ranging from five stars to budget hotels.
Shuaa Hospitality Fund I has also signed a joint-venture with Orascom Hotels Holdings to initially develop 5 Centro budget business hotels in Egypt. The joint venture has an initial capital of $40 million of which the fund has contributed $20 million.
The remainder of the hospitality fund will be invested in select opportunities across the region, in which Shuaa Partners and Rotana have already begun to identify potential investments.
"In addition to the $165 million in signed commitments, the soft commitments we have received should mean we easily reach our stated $200 million target," said Iyad Duwaji, chairman of Shuaa Partners.
|
