AHS Properties has acquired the five-star Shangri-La Hotel on Dubai’s Sheikh Zayed Road in the United Arab Emirates (UAE) in a deal valued at Dh1.1bn ($299.4m).
The purchase is said to be among the largest single-asset real estate transactions reported in Dubai in recent years.
Shangri-La Hotel was previously owned by Mismak Asset Management, a subsidiary of First Abu Dhabi Bank, The National reported.
The tower stands approximately 200m tall and was completed in 2003.
Covering nearly 93,000m², it houses a hotel, residential units, offices, and several food and beverage outlets.
AHS Properties is yet to confirm whether it will refurbish the property or maintain its current configuration.
AHS Properties founder and CEO Abbas Sajwani said: “The deal was funded through a mix of debt and equity. In the five years since we started, we have sold more than $2.5bn of properties, and those properties are being handed over now. So we've done very well over the last five years, and we have a very solid balance sheet today.”
The developer’s acquisition of the Shangri-La represents its second major purchase on Sheikh Zayed Road, following the earlier acquisition and relaunch of a commercial property now called AHS Tower. That redevelopment has generated more than $700m in sales, according to company figures.
AHS Properties is also preparing for the launch of a Dh25bn mixed-use development, planned for the third quarter of this year.
The project is set to include offices, residential units, and a hotel on a site along the Dubai Water Canal.
AHS Properties has confirmed there will be no change to the Shangri-La Hotel’s daily operations following the acquisition.
