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ASMALLWORLD secures exclusive mandate as real estate investment advisor to FIRE Group

22.02.2022

ASMALLWORLD AG / Key word(s): Alliance

22-Feb-2022 / 06:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.


ASMALLWORLD secures exclusive mandate as real estate investment advisor to FIRE Group

Zurich, 22.02.2022 - ASMALLWORLD signed a long-term contract with FIRE Group Ltd., a Dubai-based real estate investment company with a focus on hospitality projects, which gives ASMALLWORLD an exclusive investment advisor mandate for its project portfolio. Over the coming 12 months, FIRE Group expects to deploy up to EUR 75M which will be invested in high-quality hospitality projects in the UAE and Europe. ASMALLWORLD will exclusively source, assess and manage all investments for the FIRE Group, further capitalising on its expertise in the hospitality industry.

ASMALLWORLD AG subsidiary, ASW Hospitality AG, signed an agreement with Dubai-based real estate investment company FIRE Group Ltd. which gives ASMALLWORLD an exclusive mandate as investment advisor for FIRE's hospitality-focused real estate portfolio. The company will support FIRE with sourcing, managing, and divesting all of its future investments. ASMALLWORLD plans to source these projects through its extensive network in the hospitality industry, which it has built through the management of the private island resort North Island in the Seychelles, the development of MedHills in Brač, Croatia, and most recently the launch of the Ritz-Carlton Residences in Dubai.

FIRE Group plans to deploy up to EUR 75M into real estate projects in the next 12 months

Over the next 12 months, FIRE Group expects to deploy up to EUR 75M into first-class real estate projects in the hospitality industry, with a geographic focus on the United Arab Emirates and Europe. Once the initial capital has been deployed, FIRE plans to allocate further funds to its real estate portfolio to a total of 500M.

"The investment strategy we have agreed on with FIRE focuses on branded and mixed-use hospitality projects with a regional focus on the United Arab Emirates and Europe," commented ASMALLWORLD Chairman and hospitality expert Michael Manz. "Our aim is to identify opportunities which come with an ideal mix of hotels, residences and adjacent outlets with top-tier brands. With this strategy, FIRE can generate strong short-term ROI through the sale of residential units, while keeping the hotels as a longer-term investment," Michael Manz explains.

ASMALLWORLD to cover all essential value creation steps for FIRE

The investment advisor mandate with FIRE gives ASMALLWORLD the opportunity to offer a wide range of project consulting services from start to finish, generating income at multiple steps along the value chain.

In a first step, ASMALLWORLD will source relevant projects according to the agreed investment strategy. Once FIRE's investment committee approves a project, ASMALLWORLD will lead and orchestrate the entire acquisition process.

Following a successful acquisition, ASMALLWORLD will act as asset manager of the project on behalf of FIRE, taking all necessary decisions during the ownership period, including overseeing the planning process, construction, and sales coordination.

Once a project has reached maturity and a divestment decision from FIRE's investment committee has been made, ASMALLWORLD will act as exclusive sell-side advisor and lead the sales-effort until the transaction has been completed.

The partnership offers significant revenue potential for ASMALLWORLD

ASMALLWORLD's involvement across the entire value chain of a project will generate fees at all steps of the investment process, including a transaction fee from an acquisition, a consulting fee during the ownership phase and a transaction fee in the event of a divestment. ASMALLWORLD will also be awarded a profit participation of 10% for each successful investment.

All proceeds from real estate projects will be re-invested, which creates an opportunity for ASMALLWORLD to provide its services multiple times for the same investment capital. Both parties are committed to the long-term success of FIRE, and ASMALLWORLD's exclusive mandate will remain in place until 2040.

The exact upside for ASMALLWORLD will depend on the size of FIRE's real estate portfolio and the nature and duration of the projects FIRE will invest in, but the company expects revenues from this partnership to exceed CHF 10M over the course of the next 10 years.

"We will support FIRE in their efforts to source high-quality projects, lead the investment process for them, act as manager on their behalf during the ownership phase and lead the divestment process at the end of the investment period," comments ASMALLWORLD CEO Jan Luescher. "We are already conducting due diligence on two initial projects and hope to announce FIRE's first investment very soon."

This press release and further information can be found at www.asmallworldag.com.


About FIRE Group Ltd.

FIRE Group Ltd. is a Dubai-based real estate investment company that invests in high-quality real-estate projects in the United Arab Emirates and Europe. The company combines cutting-edge block-chain technology with an innovative community-based funding model to offer its customers a unique way to participate in the growth of first-class hospitality real estate.
 

The ASMALLWORLD Group

ASMALLWORLD is the world's leading travel & lifestyle community, focusing on experiences: the modern-day definition of luxury.

Centred around the ASMALLWORLD social network, the company operates a digital travel & lifestyle ecosystem which enables and inspires members to travel better, experience more and make new connections.

Members of the ASMALLWORLD social network connect through its app and website, where they can meet other members, engage in online discussions, receive travel and lifestyle inspiration, and enjoy a wealth of travel privileges.

Members also meet in person at over 1'000 global ASMALLWORLD events every year, ranging from casual get-togethers in major cities around the world, access to exclusive launches, shows, galas, soirees, exhibitions, major global sporting events, and larger flagship weekend experiences hosted in iconic destinations such as Saint-Tropez and Gstaad.

Other businesses of the ASMALLWORLD travel & lifestyle ecosystem include:

ASMALLWORLD Collection, a high-end online hotel booking engine focused on the world's most admired hotels, offering the unique "ASMALLWORLD Preferred Rate" which allows customer to enjoy exclusive travel benefits at no extra cost

ASMALLWORLD Private, a high-end travel agency offering personalised travel curation service

ASW Hospitality, a hotel management company that operates and manages the iconic North Island resort in the Seychelles

First Class & More, a subscription-based smart luxury travel service that allows members to enjoy luxury travel at insider prices

The World's Finest Clubs, the world's leading nightlife concierge offers its members VIP access to the most exclusive nightlife venues around the world

For more information, please visit:

www.asmallworldag.com

www.asw.com

www.asmallworldcollection.com

www.asmallworldprivate.com

www.first-class-and-more.de

www.first-class-and-more.com

www.finestclubs.com

www.asmallworldhospitality.com

www.north-island.com

 

Contact:

ASMALLWORLD AG
Jan V. Luescher, CEO
Seidengasse 20
8001 Zurich
Switzerland
info@asmallworldag.com


Additional features:


File: FIRE Token

End of ad hoc announcement

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