The owners of the Dubai Pearl project have announced the sale of AED6.8bn-worth ($1.9bn) of property in the long-delayed development.
The purchase, by Hong Kong-based Chow Tai Fook Endowment Industry Investment Development Group (CTFE), includes high-end residences, serviced apartments and two five-star hotels. The transaction represents the largest bulk asset sale for the development, which is wholly owned by Pearl Dubai.
The sale represents a significant new milestone for the 20 million-square-foot, mixed-used development, which is being built near the Palm Jumeirah.
CTFE is a diversified, Hong Kong-based company focusing on developing Chow Tai Fook districts in various cities of China, and is the exclusive development partner of Chinas Civil Affairs Ministry, the China Endowment Development Foundation. This transaction forms a part of the firms corporate strategy to deliver large multi-use development projects in China and other key strategic overseas markets.
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, according to a statement.
This is a landmark transaction, which brings quality international funds on board as our partners in the delivery of the Dubai Pearl vision, said Santhosh Joseph, CEO of Pearl Dubai. 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 China. This transaction brings us closer to making Dubai Pearl a fully funded project.