Indonesia's Danantara Completes Purchase of Land in Makkah and Novotel Hotel
Indonesia's Danantara completed the purchase of 4.4 hectares in Makkah's Thakher district and the 1,461-room Novotel hotel in a deal that took 10 months.
Indonesia's Danantara institution completed the purchase of 4.4 hectares in the Thakher district of Makkah and acquired the 1,461-room Novotel Makkah Thakher City hotel from Thakher Development, according to The Star newspaper.
The deal took ten months and is among the first to be completed under the Kingdom's non-Saudi real estate ownership law, according to the source.
The deal value was not disclosed. The acquisition enhances Danantara's presence in the hotel market near the Grand Mosque in Makkah.
The transaction serves as a practical test for the implementation of the non-Saudi real estate ownership law, which opens the Saudi real estate market to foreign investors.
What do these terms mean?
Hectare: A unit of area measurement equal to ten thousand square meters, commonly used to measure large land areas.
Acquisition: The purchase of a company or an asset, such as a hotel or building, transferring its ownership and management to the buyer.
Foreign real estate ownership: A right granted by a country's law allowing non-citizens to purchase and own real estate within its territory.
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