The State Assets Management Agency has reached an agreement on the sale of a 100% state share in the Hyatt Regency Tashkent hotel. The winner of the bidding is JV LLC Abu Dhabi Uzbek Investment. The company was established by the Fund for Reconstruction and Development of Uzbekistan and the Abu Dhabi Development Fund in accordance with a presidential decree dated May 20, 2019.
When choosing the investor, the best price, compliance with qualification requirements, experience in the region, conditions for closing the deal were taken into account. Following the marketing campaign and distribution of an investment teaser to foreign and local investors, the State Assets Management Agency received 5 applications.
The transaction was supported by the Big Four international companies: the state share was assessed by PricewaterhouseCoopers, and KPMG Valuation and Consulting acted as a consultant. The offer of Abu Dhabi Uzbek Investment was in the upper price range and exceeded the independent assessment of the cost of the hotel itself.
The privatization of Hyatt Regency Tashkent is an important event in the field of direct investment in the tourism sector of Uzbekistan. What distinguishes it from many other transactions is that the purchase of the state share will be exclusively at the expense of the investor’s own capital, and not at the expense of loans or other borrowed funds. Payment will be made after signing the contract of sale. In addition, Abu Dhabi Uzbek Investment undertakes the responsibility to invest $12 million in the hotel.
“Abu Dhabi Uzbek Investment looks at Uzbekistan as a potential and promising market. Our plans are to attract more than $1 billion to the economy of Uzbekistan within a few years,” said Timur Rakhmanov, CEO of Abu Dhabi Uzbek Investment.
The parties will sign a sales contract after the winner is approved by the international hotel management network Hyatt International.
Abu Dhabi Uzbek Investment JV LLC is an investment company with an announced capital of $1 billion. By the end of this year, the company plans to increase its investment portfolio in Uzbekistan from $100 million to $200 million. Abu Dhabi Uzbek Investment projects include the construction of a hotel of the international network AC by Marriott in Samarkand. At the moment, the fund is developing projects worth $300 million.
