'Global' fund seals crucial deal in India
KUWAIT CITY: Global Investment House "Global" announced Monday the conclusion of its latest investment in India, as part of its Asia Real Estate Fund investment strategy, making it the second investment for the fund. Last week, the fund finalized the purchase of a distressed shopping mall in Shangdong Province, China. The total value of the investment is $8.8 million. Sameer A. Al-Gharaballi, Executive Vice President at Global, said that this investment provides the fund an excellent opportunity to invest in the financial capital of India, Mumbai. The fund has acquired a 10,377 sqm land site in a prime location within Navi Mumbai with the objective of developing the site into a first class international business hotel. Al-Gharaballi pointed out that this will be "the first five star hotel of its kind in the Navi Mumbai area."
He added that this investment is a joint venture with a reputable infrastructure firm in South India. The total value of the investment by the fund in the project is $20 million. Al-Gharaballi also added that the proposed hotel will have a prime mover advantage in establishing itself as the leading hotel in the area as other hotels in Navi Mumbai are mostly in the 2-3 star category. This hotel investment will benefit significantly from the proposed Navi Mumbai International airport, which is 10 Km from the hotel site and the expansion of Jawaharlal Nehru Port into India's largest transshipment port in 2-3 years time. Furthermore, the continuing outward expansion of Mumbai towards Navi Mumbai area and the establishment of commercial hubs like Special Economic Zones around Navi Mumbai will provide a demand boost for this hotel investment.
Helen Wong, CEO of Cushman & Wakefield Capital Asia, the fund's advisor, said "This investment will bring in attractive returns in keeping with the investment criteria and returns profile of the fund. Expected gross returns will exceed 25 percent and we hope to consistently invest in projects that will provide these attractive returns to our investors." Rakesh Patnaik, Head of Real Estate Funds at Global, stated that the fund is in the process of appointing a reputed hotel management company to run the operations of the hotel. He also added that the fund will exit from the project before the start of the hotel operations by way of selling to strategic investors interested in acquiring a controlling stake in a leading international 5 star hotel with a prime location in Navi Mumbai. Al-Gharaballi affirmed that the fund is in the process of closing another transaction in the People's Republic of China and an announcement to this effect will be made very soon.
Global Investment House 'Global' is a full-fledged investment company incorporated in 1998, and falls under the regulation of the Central Bank of Kuwait. Its underlying foundation is to meet the high expectations of local and international clients, and to enhance the investment service industry and the capital market in Kuwait and the region. Today, Global stock lists on the Kuwait, Bahrain, and Dubai Stock Exchanges, with branches and affiliates in Bahrain, Dubai and Abu Dhabi (UAE), Jordan, Qatar, and Sudan. Global plays an important role in promoting investment opportunities in the Arabian Gulf Peninsula to investors through expert financial engineering, in-depth research and reports to advance the capital market in the region. Thus, Global's achievements have been recognized on local, regional, and international levels. The company's current assets under management reached KD2.130 billion ($7.355 billion) as of 31 March 2007.
© Arab Times 2007
