mirvac ventures further into middle east hotel

Florence Chong | June 11, 2008
MIRVAC Group has stepped up its exposure to the Middle East, forming a joint venture with an Emirates company, Al Badie group.

Mirvac Al Badie will operate two streams of business -- hotel management and development.

Mirvac executive director Nick Collishaw said yesterday the hotel management business was likely to be the first to get off the ground. He said the partners were in discussions with several groups currently developing hotels, due for completion over the next 12 to 18 months.

Mirvac has registered its two five-star hotel brands -- Quay West Resort and Sebel -- in the region.

Mr Collishaw said there was a shortage of operators in the Gulf region and Mirvac sought to provide a "point of difference" in the market.

Hundreds of hotels are under planning or under way in the Middle East and North African region.

"There is a dramatic under-supply of hotel rooms," Mr Collishaw said.

The development business, however, could take a longer to establish.

Mr Collishaw said the joint venture had yet to secure land. It planned to develop residential, commercial and hotel properties.

The Al Badie group, based in Abu Dhabi and owned by a prominent family, has been developing hotels and other projects.

Mr Collishaw said it was essential for Mirvac to constantly seek new opportunities to develop the business.

He said that five years ago Mirvac acquired the Fini residential business in Western Australia to diversify out of the eastern states.

Going to the Middle East provided the company further geographical diversification.