| Sovereign wealth fund (SWF) the Abu Dhabi Investment Authority (ADIA) will pay HK$18.5 billion (US$2.4 billion) for a 50% stake in three Hong Kong hotels, in what is the latest example of a Gulf wealth fund investing into the territory’s real estate market. As part of the deal, ADIA, one of the world’s richest SWFs, will form a 50/50 joint venture (JV) with Hong Kong conglomerate New World Development (NWD) – the current owner of the properties – to which 100% of the hotels’ share capital will be transferred.
The three properties are the Grand Hyatt Hong Kong, the Renaissance Harbour View, and the Hyatt Regency Hong Kong. Going forward, the new JV will seek to pursue other investments in the hospitality industry, a statement issued by NWD said. Founded in 1976, ADIA is the world’s second largest SWF, with approximately US$773 billion in assets, according to data from the Sovereign Wealth Fund Institute...............................................Full Article: Source |