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Shuaa Capital has sold its Saudi hospitality asset portfolio weeks after the investment bank entered the final stage of its debt restructuring process.
The portfolio, which was managed by Shuaa Capital Saudi Arabia, a wholly owned subsidiary of the Dubai-listed firm, has been sold to Saudi real estate investor Sumou Holding for 515 million riyals ($137 million).
The company held a 33% stake in the portfolio, with the sale helping reduce liabilities and adding 19.6 million UAE dirhams ($5.3 million) to its balance sheet.
The hospitality portfolio comprised three properties in Riyadh, Jeddah and Dammam.
Shuaa said the deal was a part of the company’s plan to “refine its investment focus”, aligning with its long-term objective of optimising asset allocation.
The sale comes in wake of a restructuring process that saw Shuaa Capital approve $116 million in mandatory convertible bonds (MCBs) last month across two tranches.
Ahmed AlAhmadi, the managing director of Shuaa’s board of directors, also stepped down less than two weeks ago after playing “a meaningful role” in its capital optimisation.
(Writing by Bindu Rai, editing by Seban Scaria) Seban.scaria@lseg.com
