Istithmar zips up $150mn Zanzibar deal

Zanzibar is the archipelago in the Indian Ocean about 25 to 50 kilometres off the coast of East Africa and part of Tanzania.

Dubai private equity firm Istithmar plans to develop a $150 million luxury resort in Zanzibar following a deal with the Zanzibar government, it announced on Thursday.

The resort is to be set on a 76-hectare site located at Muyuni Beach and will contain a 50-room residence and spa retreat, as well as a 150-room luxury hotel.

Both developments will be operated by major international luxury hotel brands, although no specific companies have yet been revealed.

The development will also feature luxury beach villas for sale, a fisherman's village, watersports centre, and sports club.

The project is a strategic global investment for Istithmar, which recently led a consortium that secured a deal to develop a 3.5-hectare downtown commercial site in Singapore.

“This is the second Indian Ocean development deal completed by Dubai World this month, following our recently cemented partnership with the government of Comoros,” said Sultan bin Sulayem, chairman of state-owned conglomerate Dubai World, Istithmar’s parent company.

“It marks another clear step forward in our growing relationship with Africa, which is fast becoming a major focus of our investment strategy,” he added.

Work on the $150 million project will start immediately, with completion planned for 2009.

The company expects to make a further announcement of acquisitions “in the near future”, Sulayem said in a statement.

Zanzibar is the archipelago in the Indian Ocean about 25 to 50 kilometres off the coast of East Africa and part of Tanzania.

The site for the new resort is a three-hour flight from Johannesburg and a 15-minute flight from Dar Es Salam.

Last year, Istithmar purchased the V&A Waterfront in Cape Town, South Africa, and is also behind the development of the Djibouti Kempinski Palace Hotel in Djibouti City.

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