Hong Kong-based Chow Tai Fook Endowment Industry Investment Development (CTFE) has acquired a $1.9 billion (AED6.8 billion) slice of the Dubai Pearl project.
Pearl Dubai, the developer behind the major mixed-use project, confirmed the sale on Monday in a statement.
The purchase includes high-end residences and serviced apartments and two five-star hotels. This is the largest bulk asset sale for the development, which is 100 percent owned by Pearl Dubai FZ LLC.
“This is a landmark transaction, which brings quality international funds on board as our partners in the delivery of the Dubai Pearl vision. Chow Tai Fook Endowment will bring complementary experience and expertise to the development. We are delighted with this opportunity to tap into the considerable potential of endowment funds from China,” said Santhosh Joseph, CEO of Pearl Dubai FZ LLC.
“This transaction brings us closer to making Dubai Pearl a fully funded project. Once complete, Dubai Pearl will be one of the jewels in the crown of Dubai, a revolutionary project which sets new standards in world-class, sustainable development,” he added.
The transaction represents a significant new milestone for Dubai Pearl, which will ultimately deliver a fully-integrated, world class, mixed-use development consisting of five star hotels, a shopping mall, offices and branded and serviced apartments and entertainment downtown in a prime location overlooking the Palm Jumeirah Island in the heart of the Dubai Technology and Medina Free Zone.
CTFE is a diversified company focusing on developing Chow Tai Fook districts in various cities of China, and is the exclusive development partner of China’s Ministry of Civil Affairs, the China Endowment Development Foundation.
This transaction forms a part of the firm’s corporate strategy to deliver large multi-use development projects in China and other key strategic overseas markets.
The newly-acquired assets purchased within the Dubai Pearl project will be used in part for the company, and partly will be resold to Chow Tai Fook Endowment high end clientele in the Far East seeking good rental returns as well as a property value appreciation.
“We selected Dubai Pearl as our destination partner to develop Chow Tai Fook District internationally starting with Dubai because of the vision and quality of their project offering. We are proud to be part of the project and looking forward to a long and prosperous relationship,” said Jason Chen, chairman of for Chow Tai Fook Endowment.