By Claire Ferris-Lay
Private equity arm of Shuaa Capital finalises sale of stake to Rotana chairman.
Shuaa Partners, the private equity arm of Dubai-based Shuaa Capital, has completed the sale of its stake in Abu Dhabi’s Rotana Hotel Management Corporation.
Shuaa Partners Fund 1 took a 22 percent stake in Rotana in 2006 but last month the chairman of Rotana, Nasser Al Nowais, agreed to buy the share back.
Both parties declined to give a value for the deal but in a statement from Shuaa Capital on Wednesday the firm said the fund had generated a gross internal rate of return of 36 percent and a multiple of 1.95x on its realised investments.
“Rotana has proved an excellent investment for our SHUAA Partners Fund I Limited Partners,” said Sameer Al Ansari, chief executive officer of SHUAA Capital.
“It is particularly pleasing to note that the fund, which completed this exit in the midst of a very challenging economic and financial environment, is believed to be one of few regional private equity funds to return money to Limited Partners this year. The fund’s performance during such a challenging period is second to none.”
Rotana operates 37 properties in across the Middle East and plans to open another 33 before the end of 2014.