Kuwaiti firm to invest in European hospitality properties

Kuwait-based Al Osaimi Investments and Real Estate is planning to invest more than 100 million euros (Dh532m) in buying European hospitality properties, with Paris being one of the hot destinations, a senior executive said.

“We will try to find something that is complete and then renovate it. It is not about price, but it should be a good investment opportunity,” he said.

A consortium backed by Istithmar, the investment arm of Dubai World, recently paid £130 million (Dh928m) for the 130-year-old Metropole building in London that was part of the Queen’s property portfolio. Other government-owned Gulf Co-operation Council companies have also invested in the European hospitality sector.

Al Osaimi Investments has acquired land in Downtown Jebel Ali, which is being developed by Limitless, a Dubai World subsidiary.

“We will be launching a mixed-use project there,” Al Osaimi said, refusing to disclose the cost and size of the project. “We have a lot of projects in the pipeline. In Bahrain, we are planning industrial warehouses, office and residential projects. Similar projects will also be launched in Oman and Kuwait,” he said.

Al Osaimi said: “It is not about fund allocation, but it is all about “smart investment. When we find a strong investment opportunity, which will help my organisation grow, we will jump at the chance.”

The company has developed more than a dozen projects in Kuwait, including a number of mega mixed-use real estate projects such as shopping centres, medical and sports centres, industrial areas,

villas and towers for investment purposes.

Al Osaimi ruled out plans to list his company on the stock exchange. “We are a family business and we don’t want to list,” he said.

Luxury resort

Al Osaimi Investments and Real Estate yesterday launched Dusit Emirates Saray Palm Jumeirah Hotel Resorts and Residence, a Dh1.5 billion luxury resort, spa and residence project on the Crescent of The Palm Jumeirah.

The project is targeted for completion in 2010 and comprises Dusit Devarana, Dusit Thani and The Residence.

Spread across one million square feet, The Residence will have 178 freehold units in Arabian theme, comprising two-storey townhouses, three-bedroom apartments and three-bedroom penthouses. The community will have a water sports facility and four freestanding restaurants.

The seven-star Dusit Devarana hotel will have 116 guest rooms and suites, two restaurants as well as a large ballroom.