Sovereign wealth fund (SWF) the Abu Dhabi Investment Authority (ADIA) has inked a deal to buy 50% stake in three Hong Kong hotels for HK$18.5 billion (US$2.4 billion).
As per the deal, ADIA will form a 50/50 joint venture (JV) with Hong Kong conglomerate New World Development (NWD) – the current owner of the properties – to which 100% of the hotels’ share capital will be transferred.
The Grand Hyatt Hong Kong, the Renaissance Harbour View, and the Hyatt Regency Hong Kong are the three properties.
NWD stated that, “Going forward, the new JV will seek to pursue other investments in the hospitality industry.”
Founded in 1976, ADIA is the world’s second largest SWF, with approximately US$773 billion in assets, according to data from the Sovereign Wealth Fund Institute. Its mandate is to invest surplus revenue generated from the emirate’s oil sales.
As per the deal, ADIA will form a 50/50 joint venture (JV) with Hong Kong conglomerate New World Development (NWD) – the current owner of the properties – to which 100% of the hotels’ share capital will be transferred.
The Grand Hyatt Hong Kong, the Renaissance Harbour View, and the Hyatt Regency Hong Kong are the three properties.
NWD stated that, “Going forward, the new JV will seek to pursue other investments in the hospitality industry.”
Founded in 1976, ADIA is the world’s second largest SWF, with approximately US$773 billion in assets, according to data from the Sovereign Wealth Fund Institute. Its mandate is to invest surplus revenue generated from the emirate’s oil sales.