Louis Vuitton to invest in private island business
Louis Vuitton is the world leader when it comes to luxury good manufacture and sales. Now the company has decided to diversify and get into the business of luxury property developments. Given the fact that Louis Vuitton is no stranger to catering for discerning and high net worth individuals, it seems as if it would do a good job developing these properties.
The properties that the company would like to develop are in Oman and Egypt and these will be developed under the Cheval Blanc brand name. The properties are being developed in collaboration with Orascom Hotels and Development. This will cost a total of $100 million of which Orascom would chip in with $40 million. The balance $60 million will be raised from sundry investors as well as banks. The project is likely to be up for grabs in 2012. The company has also created a special hotel management unit that would take care of the hospitality business.
The first of these properties is the Maison Cheval Blanc which is located in Oman. It is located on an 11 square kilometer island known as Al Sodah. It will have 32 private villas. The Egyptian property that is being developed will be located on the island of Amoun in Aswan in Egypt. This will have 40 super luxury suites that will overlook the Nile and provide a beautiful setting for those who appreciate the better things in life.
The new property development and management business will be managed by a six-person management team which will be headed by Olivier Lefebvre. At this point in time, the company has not released much financial info, but given the kind of investment on the cards it seems as the investment exposure of Louis Vuitton would be quite limited. The kind of response to these latest offerings from this luxury company remains to be assessed.
