(MENAFN - Arab News) Kingdom Hotel Investments (KHI), a wholly-owned subsidiary of the Saudi Arabian conglomerate Kingdom Holding Company (KHC), chaired by Prince Alwaleed bin Talal, has signed an agreement with Ayalaland Hotels and Resorts Corp, a wholly-owned subsidiary of Ayala Land Inc.
(ALI) concerning the sale of KHI's economic interest in the Fairmont Hotel and Raffles Suites & Residences Makati development in the Philippines for SR 218 million. The amount includes SR 90 million in shares and SR 128 million in other shareholder advances.
The transaction closed on Wednesday (Oct. 3). KHI will continue to be a stakeholder in the project through a financial interest with further earnout potential in the residential component and through Kingdom Holding's ownership stake in Fairmont Raffles Hotels International (FRHI).
The Fairmont Hotel and Raffles Suites & Residences Makati, a dual luxury hotel and residential project, was developed by KHI and its joint venture partner ALI and is set to become the leading destination in Manila for business and leisure travelers as well as high-end urban dwellers.
Prince Alwaleed commented: "We continue to realize value for KHC's shareholders."
Sarmad Zok, chairman and CEO of KHI and member of KHC's board of directors, said: "We are delighted to be completing this transaction which marks another significant step in the strategy to realize value from KHI's hotel portfolio.
This deal is the ultimate testimony to KHI's track record of developing hotels in high growth markets and successfully executing on international transactions."
Zok added: "The Fairmont and Raffles Makati incorporates an innovative concept that leverages two hotels and a sizeable residential scheme into one building. This development will set new standards for the hospitality sector in Manila and become a real estate landmark in Makati's growing skyline."
The Raffles Residences Makati is leading the high-end residential property market in Manila and has made real estate history for selling the highest priced residential condominium to date on a per square meter basis in the Philippines.
KHI, headquartered in Dubai (UAE), is the leading international hotel and resort investment and development company focused on high growth market economies in the Middle East, Asia, and Africa. The company has ownership interests in 19 properties in 13 countries.