Fairmont The Palm Set for $325m Sale to Arzan Financial Group
Deal News | Jan 14, 2025 | Zawya
IFA Hotels and Resorts has entered into a sale and purchase agreement to sell its Fairmont The Palm property in Dubai for $325 million. The property, a 391-room hotel on The Palm Jumeirah, is being acquired by Arzan Financial Group, specifically by its Arzan Investment Management unit. This transaction aligns with Arzan's strategy of investing in full-service hotels in key locations. The sale is expected to close in the coming months, subject to certain conditions. The deal also advances the creation of Arzan's GCC Hospitality Fund. Previously, IFA Hotels secured a $163 million refinance for the property. IFA Hotels is a subsidiary of Kuwait's International Financial Advisors, listed on stock exchanges in Kuwait and Dubai.
Sectors
- Hospitality
- Real Estate
- Finance and Investment
Geography
- United Arab Emirates – The location of the Fairmont The Palm hotel in Dubai, where the transaction is taking place.
- Kuwait – The country where IFA Hotels' parent company, International Financial Advisors, and Arzan Financial Group are based.
Industry
- Hospitality – This industry encompasses the operation and management of hotels and related services, relevant here due to the sale of the Fairmont The Palm hotel.
- Real Estate – Involves the buying, selling, and managing of properties, relevant to the transaction of the Fairmont The Palm property.
- Finance and Investment – Relates to the activities of investment firms and financial strategies, relevant due to the involvement of Arzan Financial Group and the refinancing activities.
Financials
- $325 million – The agreed sale price for Fairmont The Palm.
- 600 million UAE dirhams ($163 million) – The refinance amount secured by IFA Hotels with a UAE bank for the Fairmont property.
- AED 581 million – The existing loan amount from another UAE bank that will be settled using the refinance.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Fairmont The Palm | Target company | Company | A luxury hotel located on The Palm Jumeirah in Dubai, being sold for $325 million. |
| IFA Hotels and Resorts | Selling Company | Company | A subsidiary owned by Kuwait's International Financial Advisors, seeking to sell Fairmont The Palm. |
| Arzan Financial Group (AFG) | Bidding Company | Company | A Kuwait-based investment firm acquiring the Fairmont The Palm through its unit, Arzan Investment Management. |
| Arzan Investment Management (AIM) | Acquiring Entity | Company | A unit of Arzan Financial Group, responsible for acquiring the Fairmont The Palm and establishing the GCC Hospitality Fund. |
| Talal Jassim Al Bahar | Chairman | Person | Chairman of Arzan Investment Management and Arzan Financial Group, overseeing the strategic acquisition. |
| International Financial Advisors (IFA) | Parent Company | Company | The parent company of IFA Hotels, listed on Boursa Kuwait and the Dubai Financial Market. |