KHALEEJ TIMES, Tuesday, Jan 11, 2022 | Jamada Al-Aakhirah 8, 1443
ADFD makes first investment in Thailand's tourism and hospitality sector
Emirates:
Abu Dhabi Fund for Development (ADFD) has announced a US$104.8 million (AED 385
million) agreement with Minor International Public Company Limited (MINT) to
jointly hold shares in five tourist resort assets in Thailand, including
Anantara Riverside Bangkok Resort, Avani and Riverside Bangkok Hotel, Riverside
Plaza Bangkok, Anantara Layan Phuket Resort and Four Seasons Resort Koh Samui.
This is ADFD’s first investment in Thailand’s tourism and hospitality sector,
which is key to the nation’s overall economy and contributes 20 percent of the
country’s total GDP. With MINT, ADFD is partnering with one of the largest
hospitality and leisure companies in the Asia-Pacific region operating more than
520 hotels and resorts. The five properties ADFD is investing in combined have
more than 760 rooms and support nearly 500 jobs.
Mohamed Saif Al Suwaidi, Director-General of ADFD, said, "Tourism has long been
a vital driver of Thailand’s economy and a large component of the nation’s
employment base. We see tremendous potential in the future trajectory of
Thailand’s tourism and hospitality sector. Given MINT’s leading position as the
strongest hospitality operator in Thailand, this long-term investment
partnership complements our investment strategy to collectively promote economic
growth of our partner countries."
Dillip Rajakarier, Group CEO of Minor International, said, "This transaction
signifies our continuous commitment to strengthen our balance sheet and solidify
our liquidity position to ensure that we are poised for both the recovery to
come and long-term growth. MINT is pleased to be in a long-term partnership with
ADFD and is looking forward to working together in the future to bolster impact
in the countries in which we operate together."
The shareholding structure of the joint venture will be 60 percent held by MINT
and 40 percent of each asset by ADFD. This valuation of the transaction reflects
ADFD’s strong confidence in MINT asset management performance and the future
economic projections for Thailand’s tourism and hospitality sector.
For MINT, the ADFD investment will reduce the company’s debt level and
strengthen its balance sheet position. The five assets will continue to be
operated under the existing brands and under the control of MINT.
Established in 1971, ADFD is the UAE’s leading bilateral development financing
institution funding sustainable and inclusive growth in the UAE and developing
nations. The Fund also maintains a robust investment portfolio that has a major
focus on investing in public and private companies, government bonds and private
equity funds that contribute to the economic growth of the countries ADFD
invests in.
ADFD’s investment strategy is to invest in companies that play a crucial role
stimulating economic growth and creating job opportunities across key strategic
sectors such as tourism, industry, holding companies, real estate, and private
equities.