Arzan Investment Management signs binding sale, purchase agreement for Fairmont Palm worth US$325M

UAE – Arzan Investment Management (AIM), a subsidiary of Arzan Financial Group (AFG), has entered into a binding Sale and Purchase Agreement (SPA) to acquire Fairmont The Palm, Dubai, from IFA Hotels and Resorts for US$325 million.

The transaction is subject to standard conditions, with the deal expected to close in the coming months.

The acquisition of Fairmont The Palm will also serve as a cornerstone for the launch of AIM’s new flagship “GCC Hospitality Fund,” focusing on a value-add strategy.

This will leverage AIM’s strengths in integrated hospitality operations and its institutional investment approach, with further details set to be revealed soon. 

This follows AIM’s recent acquisition of VOCO Bonnington, JLT, Dubai in Q4 2024.

Talal Jassim Al Bahar, Chairman of AIM and AFG, commented, “This strategic acquisition aligns perfectly with AIM’s vision to invest in full-service hotels in key cities, creating institutional investment products.’

“Our expertise in hospitality enables us to identify opportunities that deliver both steady yields and capital growth through our sourcing, structuring, and operational capabilities to drive returns.” 

Oliver Hogg, CEO of AIM, added, “Fairmont The Palm enhances our platform with another iconic hotel in a prime Dubai location, complementing our recent purchase of VOCO Bonnington JLT. We expect continued growth in our hospitality platform as we prepare to launch the GCC Hospitality Fund.” 

In early October 2024, IFA secured AED 600 million (US$163 million) refinancing for its 391-room Fairmont The Palm property on Palm Jumeirah.

This refinancing, with a 15-year maturity, will settle an existing loan of AED 581 million (US$158.2 million) from another UAE bank.

Additionally, a source confirmed that IFA secured a separate AED 30 million (US$8.16 million) loan for expansion activities across several operating entities in the UAE. This second loan has a 12-year maturity. 

AIM also introduced the “Domus Real Estate Fund” in November 2024, which addresses the growing demand for affordable housing for hospitality and service sector employees.

The fund targets a portfolio valued at AED 1.5 billion (US$408.4 million) and aims to acquire, develop, and manage residential properties tailored to meet employers’ accommodation and logistics needs in the region.

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