Bloom and Foundation sign joint venture deal to build staff accommodation
The Abu Dhabi property developer Bloom Holding and Foundation Holdings have signed a joint venture to build middle management staff accommodation across the UAE and the Middle east region.
The pair said that they expected the 50/50 joint venture to spend Dh1 billion building about 4,000 staff accommodation apartments over the next three to five years for clients in the health care, hospitality and education sectors.
Bloom and Foundation said they ultimately planned to float the new joint venture company on a local or international stock exchange.
Both have agreed to spend Dh150 million in seed capital to start the new venture and expect to raise bank financing on a project-by-project basis.
The company has already acquired two sites to develop a first batch of homes in Jumeirah Village Circle in Dubai and an unspecified location in Abu Dhabi.
"We plan to institutionalise the staff accommodation sector in the Middle East," said Sameh Muhtadi, the Bloom Holding chief executive. "The concept is very similar to the way in which Aldar will build staff accommodation for Etihad cabin crew, but this will be for middle and upper management."
"At the moment businesses in the UAE could well be leasing 15 units in one building and then another 10 in another one. They have to deal with Dewa, different registrations and all sorts of other problems. What we propose is to take all of those headaches away," Mr Muhtadi added.
Foundation Holdings was founded in November by Abhishek Sharma, the investment banker who helped to lead IPOs for Amanat Holding and Al Noor Hospitals on the DFM and London Stock Exchange.
In January Bloom said that it planned to be ready to go public itself with a possible IPO over the next two years.
( courtesy of TheNational )