Danantara Indonesia, through its investment arm, PT Danantara Investment Management, has acquired 4.4 hectares of land plots within the SAR26 billion ($7 billion). Thakher Makkah development in Saudi Arabia following the acquisition and handover of Novotel Thakher Makkah. The completed acquisitions comprise an operating hotel with 1,461 rooms and suites.
Danantara Indonesia, through its investment arm, PT Danantara Investment Management, has acquired 4.4 hectares of land plots within the mega Thakher Makkah development in Saudi Arabia following the acquisition and handover of Novotel Thakher Makkah. The transaction involves an operating hotel with 1,461 rooms and suites.
According to Thakher Development, the next phase will involve investments worth SAR2 billion ($524 million) from Danantara with plans to develop about 6,000 additional hotel rooms and more than 90 retail outlets within the mega development.
Spanning over a 320,000 sq m area on a site located 1 km from the Grand Mosque, the Thakher Makkah project comprises a mix of residential, retail and hospitality elements.
Upon completion, it will boast about 100 land plots for the development for hotels and residential, commercial, and service-related facilities.
This transaction establishes a long-term investment presence in Makkah’s hospitality sector and provides a foundation for the development of an integrated accommodation and services ecosystem for Hajj and Umrah pilgrims.
This come following the strategic agreement announced by Danantara Indonesia and Thakher Development Company.
The investment forms part of the Hajj and Umrah ecosystem (Bait Jemaah Complex) which is intended to provide accommodation and supporting services for Hajj and Umrah pilgrims, and advances Danantara Indonesia’s long-term strategy to improve the pilgrimage experience.
By combining an existing hospitality asset with land for future development, the transaction provides a foundation for a phased approach to expanding accommodation capacity and supporting services.
The Indonesian group said these land plots are intended to form part of an integrated master plan encompassing hospitality facilities, retail, and other supporting amenities.
Future development will be undertaken in stages with Al Khomasiah, a local development partner that supported the completion of this transaction and Danantara Indonesia's wider presence in the Kingdom of Saudi Arabia.
The required feasibility studies, approvals, and applicable licensing documentation for the plots will be prepared and provided in accordance with each stage of development.
On the strategic buy, Danantara Indonesia CEO Rosan Roeslani said this milestone represents a concrete step in building a long-term hospitality investment platform in Saudi Arabia.
"Our focus is to manage these assets with rigorous investment discipline while developing an integrated ecosystem that enhances the quality of accommodation and services available to pilgrims from Indonesia and around the world," stated Roeslani.
"More broadly, this marks the beginning of a deeper economic partnership between Indonesia and the Kingdom of Saudi Arabia, and we will continue to strengthen our bilateral cooperation by exploring opportunities in Madinah and other strategic sectors outside of real estate that will be mutually beneficial for both nations," he added.
Chief Investment Officer Pandu Sjahrir said this initiative brought together an asset that is already operating with land that gives us room to expand over the long term as the Hajj and Umrah ecosystem continues to grow.
"At the same time, we see this as an opportunity to introduce Indonesian culture, hospitality, and cuisine on the global stage. We will take a measured approach to the next stages, guided by commercial feasibility, regulatory requirements, and prudent governance, with the aim of creating sustainable long-term value," he noted.
Faisal Shaker, Chief Executive Officer of Thakher Development, dubbed it as a historic moment as the group welcomed the first foreign state to own property in its mega destination, thus reflecting the global confidence in Thakher Makkah.
"At Thakher Development, we design investment opportunities for partnerships of this scale, and we are proud to have taken this transaction from initial signature to transferring the title in 10 (ten) months. Our focus now is to ensure that Danantara’s investment ambition and our development strategy align and to help Danantara deliver the next phase, so that more of Indonesia’s pilgrims can remain within reach of the Haram. Today, we have turned this opportunity into a replicable model to serve as the gateway for foreign investors into Makkah.”
Khomasiah Group CEO Ammar Baroum said: "This landmark transaction represents a significant milestone for Makkah, reflecting growing international investor confidence in the Saudi market and its long-term potential. Danantara Indonesia’s commitment underscores the Kingdom’s attractive investment environment and the opportunities across its hospitality and real estate sectors, particularly in Makkah and Madinah."
"We are proud of Khomasiah’s role in facilitating this investment and supporting foreign direct investment in line with Saudi Vision 2030," he added.-TradeArabia News Service