UAEReal Estate

Bank Muscat Sells Movenpick Jumeirah Beach Residence Hotel in UAE to Arenco Group

Bank Muscat was managing Dubai property on behalf of its clients

The Movenpick Jumeirah Beach Residence hotel in Dubai now has a new buyer.

Oman’s Bank Muscat, which was managing the asset, sold the property to the A. A. Al Moosa Enterprise (Arenco Group). The latter is one of the UAE’s bigger family-owned enterprises, with assets straddling real estate, hospitality, logistics, automotive retail, etc.

Bank Muscat was managing the Movenpick JBR for a number of large regional shareholders, including sovereign wealth funds, according to a statement from Knight Frank, which advised on the deal.

The hotel commenced operations in 2010 and has 297 rooms. The hotel was acquired by the Bank led SPV in 2014 and the sale represents another milestone in delivering superior returns to its investors.

ARENCO Group already has a portfolio of 15 plus hotel properties, which are managed by the likes of Hilton, Marriott, Accor, IHG and Taj in the UAE and Oman. (It also owns and operates five hotels/ hotel apartments under the ‘Golden Sands’ brand.)

“The transaction garnered strong interest from both institutions and private family groups, being a recognisable and top performing hotel in a Tier A location,” said Andrew Love, Regional Partner – Head of Capital Markets, Knight Frank MENA. “The sale further cements Dubai’s place as a regional hub for real estate capital deployments”.

Dubai’s commercial real estate packs a punch

In recent months, there has been a clear upturn in deals involving commercial property assets in Dubai, whether that’s offices, logistics and warehousing, and hotels. Even when it comes to auctions,hotel and serviced apartments have been top picks. Recently, the Select Group acquired the site of the ‘Pentominium’ tower in Dubai Marina and re-purposed it into a luxury branded residences offering. (The Raffles hotel property in Dubai also briefly came up for auction.)

According to hotel industry sources, the Movenpick JBR has consistently attracted high occupancy levels, being part of the JBR and wider Dubai Marina cluster. For Arenco Group, the deal delivers a firmly established property asset and with a leading hotel operator brand in tow.

“Investors in Dubai are clearly looking beyond residential assets,” said an analyst. “And owners will look to cash in given the premiums they are likely to get if they sell.”

Source: gulfnews

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