The acquisition is KHI’s second acquisition in Thailand this year and was made through a joint venture company, which is 80% owned by KHI and 20% by European Hotels Corporation Ltd (EHC), KHI’s joint venture partner in the Four Seasons Hotel in Marrakech.
The proposed Raffles Phang Nga Resort and Residences will start operations in 2009, with 150 rooms and 25 luxury residential villas located on 240,000 square metres of prime freehold land. It is anticipated that standard rooms will contain a gross area in excess of 100 square metres per unit. The built up areas of the villas will be approximately 500 square metres per villa.
The site is populated with mature Palms and overlooks the Andaman Sea. It included an 80,000 square metre fresh water lake and benefits from approximately 400 metres of direct beachfront. The proposed resort, which is located 35 minutes drive from Phuket International Airport, is an excellent location for leisure guests.
Residential villas will be offered for sale during the development period on a long-term leasehold basis. The sale proceeds will be used to finance part of the development.
KHI is targeting to invest US$12 million for an 80% ownership stake in the proposed development. KHI will seek debt financing to fund approximately 50% of the total project. The sale of the villas during the development period will contribute to the funding of the project.
HRH Prince Alwaleed Bin Talal, Chairman of KHI, said:
“Thailand is an exciting market for KHI. We announced our first investment in the country earlier this year and are pleased to add the proposed Raffles Phang Nga Resort and Residences to our portfolio. The hotel and residences have significant potential and will benefit from the strong brand awareness of Raffles in the Asian hotel market.”
Sarmad Zok, Chief Executive Officer of KHI, said;
“I am delighted with our acquisition of the proposed Raffles Phang Nga. The site and project provides a spectacular setting that will enable us to develop high-end, branded residential villas. This project fits perfectly well in KHI’s strategy, particularly as it contains a significant ancillary real estate component in one of Asia’s hottest residential markets.”
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