King & Spalding advises SHUAA Saudi on new real estate fund

The SHUAA Saudi Fund is managed by SHUAA Saudi, which is a subsidiary of SHUAA Capital psc.

The first closing of the SHUAA Saudi Fund is expected to occur June 2008.

The SHUAA Saudi Fund intends to acquire and develop seventeen hotels, serviced apartment buildings and resorts throughout the Kingdom of Saudi Arabia, eventually comprising a total of 5,000 rooms.

The proposed properties will be managed and operated by a subsidiary of Rotana Hotel Management Corporation (Rotana), a leading pan-Arab hotel management company.

The SHUAA Saudi Fund will own 20% of the subsidiary. King & Spalding advised on the various agreements between Rotana and SHUAA Saudi Fund.

The cross-office team of King & Spalding lawyers representing SHUAA Saudi on the formation and structuring of the SHUAA Saudi Fund was led by associate Nabil Issa of the firm's Dubai and Riyadh offices and Dubai-based corporate partner Benjamin Newland.

Dubai Islamic finance partner Jawad Ali played a significant role in the structuring of the fund and the development of Shari'ah-compliant structures that SHUAA Saudi Fund will utilize to finance the construction.

Scott Arnold, a New York-based partner and co-head of King & Spalding's real estate capital markets practice, advised on certain agreements with Rotana.

Dubai-based associates James Stull, Yasmine Kurukgy and Emily Leung, Riyadh-based counsel Mohammad Al-Ammar and New York-based associate Dave Powell assisted on the transaction.