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Resort in Maldives sold to Asia-focused equity fund

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One of Maldives' most prestigious resorts has been sold to a private equity fund worth US$850 million.

The luxury getaway, a 124-villa resort, caught the fancy of RBRM, a subsidiary of Real Estate Capital Asia Partners - a private equity fund managed by SC Capital Partners Group in Singapore.

The Reethi Beach Resort is the group's first property investment in Maldives, which has exclusive Asia-Pacific property development focus.

It currently has ownership of more than 40 hotels and resorts in the region. The Reethi Beach property has a sub-lease with an immediate stable rental income stream. There is also the opportunity of repositioning the offering in the medium term.

The resort is situated in Baa Atoll's UNESCO World Biosphere Reserve.

Executive Vice President, JLL Hotels & Hospitality Group, Asia Pacific Nihat Ercan said the attractive property received expressions of interest from all over the world.

"We received an unprecedented number of expressions of interest for this sale from investors across the Asia Pacific and Middle East regions, including China, Sri Lanka, Malaysia, Australia and the United Arab Emirates. Underpinned by the market's robust trading fundamentals, as well as the significant reversionary opportunity the resort offers at expiry of the sublease, the asset resonated strongly with the investment community," he explained.

This is JLL's seventh transaction in the Maldives since 2012. According to Mr Ercan, the real estate giant has now conducted transactions in the Indian Ocean worth more than US$500 million.

The Maldives 'vibrant tourism scene has appeal for private investors, owner-operators, listed companies and institutional investors alike.

"We expect this trend to continue as further opportunities in this unique market unfold," commented Mr Ercan. 

JLL group has recently appointed exclusively by AAA Group to provide strategic counsel on the disposition of Zitahli Kuda-Funafaru Resort and Spa, in the Maldives' Noonu Atoll. 

Date Published: 25 May 2015
Category: General News

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