Commercial Bank of Dubai (CBD) announced that it has arranged around Dhs200 million to finance the acquisition of Movenpick Hotel in Jumeirah Beach Residence by a group owned by Bank Muscat.
The financing was arranged for BMJBR Properties Limited, a company owned by BM GCC Property Income Fund.
The private equity fund was launched by Bank Muscat to tap into the opportunities in the GCC’s property sector. The fund mainly invests in income yielding properties in the region that generate a stable annual yield of seven to eight per cent.
“The UAE economy has been growing robustly with trade and tourism as the main engines of growth,” said Peter Baltussen, CEO of CBD.
“This has made the UAE an attractive destination for regional and international investments. The acquisition of Mövenpick Hotel JBR Dubai illustrates the investors’ confidence in the UAE’s economy in general, and in the sectors with high prospects of growth in particular.”
With an aim to attract around 25 million tourists by 2020, Dubai has been wooing more investments to develop its hospitality sector.
Last year, the world’s largest construction company, China State Construction Engineering Corporation (CSCEC), announced that its Middle East division will invest in the upcoming Viceroy Dubai Palm Jumeirah project.
CSCEC, the main contractor of the Viceroy Dubai Palm Jumeirah, has formed a special purpose vehicle, ASSAS, with SKAI Holdings to make the investment, the companies said in a statement.