Fairmont The Palm to be Sold for $325 Million
Deal News | Jan 14, 2025 | Zawya
IFA Hotels and Resorts has entered into a sale and purchase agreement to sell the Fairmont The Palm hotel for $325 million to a unit of Arzan Financial Group. This acquisition marks a significant step for Arzan Investment Management (AIM), as it plans to use this 391-room property acquisition as a catalyst for its new GCC Hospitality Fund platform. The agreement is part of AIM's strategy to concentrate investments in full-service hotels located in key gateway cities, aiming to create institutional investment products. Although a refinance for the property was secured in October with a UAE bank for 600 million UAE dirhams ($163 million), the deal with Arzan Financial Group still requires completion of certain conditions with a closure expected in upcoming months.
Sectors
- Hospitality
- Real Estate Investment
- Financial Services
Geography
- United Arab Emirates – The Fairmont The Palm hotel is located in Dubai, a major city in the United Arab Emirates.
- Kuwait – The acquiring firm, Arzan Financial Group, and the selling company's parent company, International Financial Advisors, are both based in Kuwait.
Industry
- Hospitality – The industry involved is Hospitality, as the article discusses the sale of a significant hotel property, Fairmont The Palm, in Dubai.
- Real Estate Investment – The article pertains to Real Estate Investment, revolving around the acquisition of a high-value property as an investment for institutional products and a hospitality fund platform.
- Financial Services – The involvement of financial maneuvers such as refinancing and the strategic acquisition aspects ties the article to Financial Services.
Financials
- $325 million – Proposed purchase price of Fairmont The Palm.
- 600 million UAE dirhams ($163 million) – Refinance amount secured by IFA Hotels and Resorts for the Fairmont The Palm property with a UAE bank.
- AED 581 million – Previous loan amount to be settled with the new refinancing deal.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| IFA Hotels and Resorts | Selling Company | Company | IFA Hotels and Resorts is the company selling the Fairmont The Palm. It is a subsidiary of Kuwait's International Financial Advisors. |
| Arzan Financial Group (AFG) | Bidding Company | Company | Arzan Financial Group is a Kuwait-based investment firm acquiring the Fairmont The Palm property through its unit. |
| Arzan Investment Management (AIM) | Other Company | Company | AIM is a unit of Arzan Financial Group involved in the acquisition and aims to use the property for its GCC Hospitality Fund platform. |
| Fairmont The Palm | Target Company | Company | Fairmont The Palm is the hotel property being sold, located on The Palm Jumeirah in Dubai. |
| Talal Jassim Al Bahar | Chairman | Person | Chairman of AIM and AFG, involved in the strategic direction and announcements regarding the acquisition. |
| International Financial Advisors (IFA) | Parent Company | Company | The parent company of IFA Hotels and Resorts, listed on Boursa Kuwait and the Dubai Financial Market. |