UAE’s leading financial entity, Abu Dhabi Fund for Development (ADFD) has signed a $104.8 million (AED 385 million) worth agreement with Minor International Public Company Limited (MINT) to jointly hold shares in five tourist resort assets in Thailand.
According to the statement, the five properties are 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 important to the country’s overall economy and contributes 20 percent of the total gross domestic product (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 in which ADFD is investing include over 760 rooms and employ approximately 500 people.
“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 the economic growth of our partner countries.”
“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,” said Mr. Dillip Rajakarier, Group CEO of Minor International.
The shareholding structure of the joint venture will be 60 percent held by MINT and 40 percent of each asset by ADFD. This transaction valuation shows ADFD’s strong confidence in MINT’s asset management performance as well as the future economic projections for Thailand’s tourism and hospitality sectors.
“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,” as per the statement.
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