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IFA Hotels and Resorts is looking to sell its Fairmont The Palm property for $325 million after entering into a sale and purchase agreement (SPA) with a unit of Kuwait investment firm Arzan Financial Group (AFG).
Arzan Investment Management’s (AIM) acquisition of the 391-room property on The Palm Jumeirah will also serve as a catalyst for the establishment of its new GCC Hospitality Fund platform.
The latest agreement follows the recent acquisition of AIM’s VOCO Bonnington, Dubai in Q4 2024.
Talal Jassim Al Bahar, Chairman of AIM and AFG, said the latest acquisition is in line with AIM’s strategy to invest into full-service hotels in key gateway cities to create institutional investment products.
The transaction is subject to conditions with a closing expected in the coming months, a statement read.
In October, IFA Hotels and Resorts secured a 600 million UAE dirhams ($163 million) refinance with a UAE bank for the property, with a 15-year maturity. A source told Zawya at the time that the contract will be used to settle an existing loan worth AED 581 million from another UAE bank.
IFA Hotels is a subsidiary owned by Kuwait’s International Financial Advisors (IFA), listed on both Boursa Kuwait and the Dubai Financial Market (DFM).
(Writing by Bindu Rai, editing by Seban Scaria)
