KM Properties, a member of the UAE-based Al Rostamani Enterprise family conglomerate, has announced to set up $2.3 billion Shariah-compliant real estate development fund.
The fund has been established to develop and own an international chain of hotels that will abide by the Islamic principles of Shariah. It will also spread investment across various complementary commercial real estate assets worldwide.
Phase one of the hospitality and real estate development fund is closed to subscribers, but it is anticipated that international corporations will enter the fund in its upcoming stages, with great interest already shown for phase two. It is also likely that international teams will be involved in the fund and company management.
The new-concept hotel chain, which is in the advanced stages of development, will encompass significant elements that have not been addressed or targeted by existing hotel flags. It is a Shariah-compliant business model and product proposition created as a result of extensive studies by KM Properties, and supported by retained industry veterans.
KM Properties has already committed an investment of $290 million to develop a 700-room hotel and serviced apartment project in Dubai, scheduled to open for business in the summer of 2008. |
