Tue Jan 23, 2007

Zabeel takes stake in specialty contracting firm.

Investment in Depa United Group shifts focus towards construction and design.

Dubai`s Zabeel has further expanded its business mix with an equity stake in the Depa United Group. Being the largest regional interior contractor and sixth largest specialty interior contractors in the world, Depa United Group has over three decades of delivering superior quality to its clients.

The announcement comes just days after Zabeel announced it had taken an equity stake in regional private equity leader, Abraaj Capital. HE Mohammed Ali Al Hashimi, Executive Chairman of Zabeel, said of the equity acquisition: "Investing in a company such as Depa United Group, brings a greater diversity to our portfolio, and creates a mutually beneficial partnership for future ventures."

Based in Dubai, Depa has steadily grown and expanded in Europe, the Middle East, North Africa, India and China through its offices, partnerships and subsidiaries. Amongst its elite projects are Burj Al Arab, Emirates Palace Hotel, The Ritz Carlton Dubai, Four Seasons Sharm El Sheikh, along with many other five star hotels in Dubai and around the world

Depa United Group, which was awarded a subcontract to fit-out the 899 serviced and residential apartments for the world`s tallest building, Burj Dubai, operates a range of businesses under its umbrella. These including Mivan Depa LLC, a pioneer in theme contracting, whose management and interiors fitting-out capabilities have made a natural transition into the event, exhibition, museum and visitor attraction market. Mivan Depa is currently concluding the gallery fit-out works at the iconic Museum of Islamic Arts in Doha, Qatar.

"Through this equity deal with Zabeel we are developing a long-term strategic partnership with a high profile and reputable regional investment institution that will help us achieve our long term goals," said Mohannad Sweid, Chief Executive Office of Depa United Group.

With an estimated 25 percent market share in the regional interior contracting industry and an exceptional track record of prestigious projects in the region, the new funding and strategic partnership will leave DEPA well placed to further leverage business growth across the Middle East region and beyond.

The Group also includes Pino Meroni Middle East L.L.C., which focuses on the design and manufacture of high quality custom-made furniture for both the local market and worldwide sales.

DEPA`s latest acquisition, a 60 percent stake in Dragoni International - a company that specializes in furniture manufacturing including mass production, special unique pieces as well as the supply and fit-out of soft and hard furnishings - fortified Depa`s standing as an aggressive, growth oriented business that provides full turnkey solutions to its clients.

Other Group companies include Eldiar Furniture Manufacturing and Deco Emirates. The Group`s business are aimed at providing a one-stop solution for quality interior fit-outs, overall project and budget management, design of manufacture and supply of furniture, and decoration finishing.

Zabeel has announced a host of projects in recent months, including the development of the AED 2.1 billion Tiara Residence, the AED 1.85 billion America Hotels & Resorts projects as part of the Bawadi hospitality and tourism project and the AED 1.75 billion joint venture with United Holdings, Tiara United Towers.

The company`s ambitious acquisition and development plans will continue to gain momentum in 2007, with a number of projects on the drawing board. Mr. Al Hashimi confirmed: "We are looking at a number of opportunities, measuring the potential benefits for our investors, particularly on projects with organic growth possibilities. The projects we are considering have to provide a good return on investment, but at the same time benefit the community in some way, either through employment creation, environmental conservation or development of communities; it`s about sensible development."