Indonesian sovereign wealth fund eyes hotel, property assets in Mecca

Indonesia's sovereign wealth fund, Danantara Indonesia, has inked an agreement with Jeddah-based Thakher Development Company to acquire hotel and real estate assets.

Danantara is looking to acquire assets within Thakher City complex, an integrated development located few kilometers from the Grand Mosque in Mecca.

Danantara and Thakher Development Company will acquire Novotel Makkah Thakher City, a 1,461-key hotel, along with 14 plots, totalling nearly 4.4 hectares. The plots will be developed pursuant to an integrated master plan, that will include hospitality, retail and other offerings. 

The transaction lays the groundwork for Danantara’s long-term involvement in the kingdom’s hospitality sector, Rosan Perkasa Roeslani, Danantara CEO, Indonesian news agency Antara reported, citing a statement issued on Sunday. 

It also forms part of a phased, long-term strategy to improve services for Indonesian Hajj and Umrah pilgrims, he added. 

“Every year, more than two million Indonesians perform Umrah, while the number of Indonesian Hajj pilgrims consistently exceeds two hundred thousand.”

All development stages will be carried out in coordination with relevant authorities in Saudi Arabia and Indonesia, in accordance with applicable licensing and governance procedures, the statement added.  

Established earlier this year, Danantara is Indonesia's second sovereign wealth fund, and was seeded with stakes in seven state-owned enterprises, valued at $172 billion, according to data shared by Global SWF.