Abu Dhabi Fund Enters Thai Hotel Sector With Stakes in Five Minor Group Assets
Four Seasons Resort Koh Samui, one of four hotels in the new joint venture between Minor International and Abu Dhabi Fund for Development. Photo: Four Seasons Hotels & Resorts
22 December 2021
Minor International (MINT) has sold 40 percent of its interest in five assets in Thailand to Abu Dhabi Fund for Development at an aggregate selling price of US$104.8 million (3.5 billion baht).
Four of the five assets are resorts, namely, the Anantara Riverside Bangkok Resort, Avani+ Riverside Bangkok Hotel, Anantara Layan Phuket Resort and Four Seasons Resort Koh Samui. The fifth is a mall, the Riverside Plaza Bangkok.
A joint venture has been formed for the deal, with Minor holding the controlling 60 percent share. The assets will continue to be managed by Minor under their existing brands.
Minor’s group CEO Dillip Rajakarier said the net proceeds from the sale are primarily intended to “strengthen our balance sheet and solidify our liquidity position for the recovery to come”.
The overall asset valuation, implying 12.5x to 2019 EBITDA, reflects the Abu Dhabi fund’s confidence in Minor’s asset management performance and Thailand’s tourism sector, Minor said.
This is the first time the fund has invested in Thailand. In hospitality and tourism, it has interests thus far in projects in Morocco, Egypt and Tunisia.
The fund, a UAE government-linked entity, was established in 1971. Its mission is to help developing countries achieve sustainable economic growth and reduce poverty by providing sovereign loans. It also invests in projects, focusing on two areas: liquidity management through various financial instruments including bonds and bank deposits, and full ownership or equity sharing with public or private companies.
The fund has invested in more than 500 projects and companies with more than US$40 billion in assets across key strategic sectors such as tourism, holding companies, real estate and private equities.
On its Thai foray, the fund’s director general Mohamed Saif Al Suwaidi said, “The tourism sector has long been a vital driver of Thailand’s economy and a large component of Thailand’s employment base. Despite the current volatility from Covid-19, Abu Dhabi Fund for Development is looking beyond the pandemic and believes in the longterm trajectory of Thailand’s tourism sector.”
JLL Asia-Pacific acted as the buy-side advisor for this transaction.