Dubai property deal worth $1.9bn
UAE-based Pearl Dubai has sold $1.9 billion prime property assets within its 20 million sq ft Dubai Pearl development project to the Hong Kong-based Chow Tai Fook Endowment Industry Investment Development (Group).
The purchase includes high-end residences and serviced apartments and two 5-star hotels. This is the largest bulk asset sale for the development, which is 100 per cent owned by Pearl Dubai FZ LLC, a consortium of investors led by the UAE’s Al Fahim Group.
The project faces a 2 year delay to its original completion date of 2013. The project’s main contractor is Habtoor Leighton Group. EC Harris is project manager. It is essentially a mixed-use scheme overlooking the Palm Jumeirah containing branded apartments retail and leisure, commercial offices and hospitality units. It is set to contain four towers based around a large podium and contain 1,490 apartments, seven five-star hotels including a Bellagio and an MGM, over 60 restaurants and a 1,800-seat theatre.
The newly-acquired assets purchased within the Dubai Pearl project will be used in part for the company, and partly will be resold to Chow Tai Fook Endowment high end clientele in the Far East seeking good rental returns as well as a property value appreciation. Jason Chen, Chairman of for Chow Tai Fook Endowment, said: “We selected Dubai Pearl as our destination partner to develop Chow Tai Fook District internationally starting with Dubai, because of the vision and quality of their project offering. We are proud to be part of the project and looking forward to a long and prosperous relationship.” Santhosh Joseph, CEO of Pearl Dubai FZ LLC, said: “This is a landmark transaction which brings quality international funds on board as our partners in the delivery of the Dubai Pearl vision. Chow Tai Fook Endowment will bring complementary experience and expertise to the development. We are delighted with this opportunity to tap into the considerable potential of endowment funds from Hong Kong and China. “This transaction brings us closer to making Dubai Pearl a fully funded project.”
Jason Chen, the chairman of Chow Tai Fook Endowment, said: “We selected Dubai Pearl as our destination partner to develop Chow Tai Fook District internationally starting with Dubai, because of the vision and quality of their project offering. We are proud to be part of the project and looking forward to a long and prosperous relationship”.