Jeddah, 8 August 2011 - SHUAA Capital Saudi Arabia cjsc, one of the Kingdom's leading financial services institutions, today announced that it has completed the acquisition of a prime plot of land in Jeddah through its SHUAA Saudi Hospitality Fund I ("the Fund"). The land will be developed into a 254-room budget business hotel which will be managed by Rotana Hotel Management Corporation, the leading hotel management company in the in the Middle East and Africa. The hotel, which will be branded 'Centro Hotels by Rotana', will have a total built-up area of approximately 12,000 sqm. The total cost of the project is estimated at SR 160 million.
Mr. Omar Al Jaroudi, Chief Executive Officer of SHUAA Capital Saudi Arabia, commented: "This marks the second such transaction made by the Fund in Jeddah and underlines our view that the city is an exciting investment destination for SHUAA Capital. In Rotana Hotel Management, we have a partner who shares our commitment to generating strong investment returns for our clients as well as supporting the economic growth of the Kingdom."
The SHUAA Saudi Hospitality Fund I is a Shariah-compliant closed-end real estate investment fund launched by SHUAA Capital Saudi Arabia, in August 2008, under the laws and regulations of the Kingdom of Saudi Arabia. The Fund is offered as a private placement and regulated by the Saudi Capital Market Authority (CMA), in accordance with the Real Estate Investment Funds Regulations. It was established in partnership with Rotana Hotel Management Company.
The Fund focuses on acquiring and developing prime land and real estate in areas with strong long-term growth prospects and supply-constrained market dynamics. It is managed by SHUAA Capital Saudi Arabia while the hotels in the Fund's portfolio are operated by Rotana Hotel Management Company.
Mr. Selim El Zyr, President and Chief Executive Officer of Rotana, commented: "Over the past six months, the hotel market in Jeddah has performed exceptionally well, with an increase in the average room rate of over 9%. This growth compliments the long-term prospects of the Jeddah economy which are being driven by extensive infrastructure and large-scale development projects. We see Saudi Arabia as a particularly promising market for Rotana hotels with significant upside potential."
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About SHUAA Capital Saudi Arabia
SHUAA Capital Saudi Arabia, cjsc ("SCSA"), a subsidiary of SHUAA Capital psc in Dubai, is a closed joint stock company with a paid-up capital of SAR 150 million. SCSA was established to promote investment opportunities within the Kingdom of Saudi Arabia and the broader Middle East and North Africa region. Through its headquarters in Riyadh, SCSA is licensed to conduct all investment banking activities including asset management, advisory, raising of capital, corporate finance, private equity, underwriting and custody services. These services are available to corporations, governments, institutional clients and high net worth individuals. SCSA is also authorized to offer domestic, regional and international clients access to companies listed on the Saudi stock exchange (Tadawul). Through its range of services, SCSA is committed to offering its clients unconventional and innovative products, as well as superior customer relationship management.
For English media enquiries please contact:
Oliver Schutzmann
Head of Investor Relations & Corporate Communications
Tel: +971 4 319 9872
Mobile: +971 50 640 5722
oschutzmann@shuaacapital.com
For Arabic media enquiries please contact:
Tarek S. Fleihan
Assistant Vice President
Corporate Communications
Tel: +971 4 319 9874
Mobile: +971 50 708 0571
tfleihan@shuaacapital.com
© Press Release 2011
