MoU signed for a US$700mn beachfront tourism and residential real estate project on a stretch of beach near the Seeb International Airport
Alfa International Holdings Corp, a public company based in New York, traded on the Over-The-Counter Bulletin Board (TYBR.OB), is acquiring a small private company, Journey of Light Inc, which has recently signed a memorandum of understanding with the Sultanate of Oman for the development of an estimated US$700mn beachfront tourism and residential real estate project on a stretch of beachfront near the Seeb International Airport.
The acquisition of Journey of Light (JOL) by Alfa was contingent upon the MoU. As currently planned, the project includes a theme park and exhibitions, hotels, restaurants, commercial and retail businesses, office space and residential units.
The project will be developed under a new company - JOL will be the majority partner and the Ministry of Tourism the minority partner - that will own and operate all the business enterprises in the project and design, build and sell the residential component.
As its contribution to the new project company, the Ministry of Tourism will transfer between 200 acres and 245 acres of beachfront land facing the Gulf of Oman for the tourism and commercial components of the project, as well as some of the residences.
Frank Drohan, the president of both Alfa and JOL, tells GlobeSt.com that additional residential land will be provided by the Ministry of Tourism as is necessary to meet the project's minimum required financial returns as specified in the MoU.
Drohan could not reveal the minimum required financial return due to the confidentiality agreement, but did say the total return on investment is expected to be in the high teens. "The residential portion is providing financial viability," Drohan says.
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