Hospitality venture formed

03 May 2006

Kuwait-based Global Investment House and Singapore-based Fraser Serviced Residences have announced plans to create a joint venture holding company to invest in serviced residential properties across the Middle East. The vehicle plans to invest some $500 million over the next five years.

The company will be headquartered in Kuwait City and has appointed Dubai-based RSP Group as hospitality consultant. It will have the exclusive right to develop Fraser-branded residences in the region. Seven properties have been targeted for development in Abu Dhabi, Dubai, Doha, Jeddah, Kuwait and Riyadh. The first is scheduled to open in 2008.

The company's capital will be raised through a private placement, due to be launched within weeks. Omar el-Quqa, executive vice-president of Global, said that the decision to invest in the serviced apartments sector was driven by its relative under-development in the region and the potential for high returns.

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