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August 18 2009
New Portsmouth chairman Sulaiman Al Fahim is set to scoop a $165 million bonus from the Royal Group, owners of Hydra Properties.
The
bonus, due to be paid this year, is being made as a result of several
lucrative “land flipping” deals the former Hydra Properties CEO made
for the company during the past three years.
In an interview
with Emirates Business 24/7 on Friday, Fahim confirmed he would be
receiving a bonus, saying: “I will be receiving a bonus for the work I
did as CEO of Hydra Properties. However, the amount I will receive is a
matter between me and the Royal Group as two private parties to a
private agreement.”
Arabian Business understands that Al Fahim – who stepped down as CEO of
the Abu Dhabi property developer two months ago – bought and sold land
for the Royal Group in at least seven countries, including Panama,
Costa Rica, India, Pakistan, Turkey, Montenegro and the USA.
Speaking
from Abu Dhabi, a source close to the Royal Group said: “These were
deals that were done during the boom. Many were initially for
development projects, but they were re-sold at considerable profit
during the height of the boom.”
According to the source, Al
Fahim’s contract with the Royal Group was based on bonuses relating to
building up the value of land banks and any profits from their re-sale.
Al Fahim, according to the source, is said to be in discussions
with the Royal Group to evaluate the exact size of the bonus payment,
which could reach $165 million.
“He’s still working for the
Royal Group at board level and this is probably why, because he brought
in these kind of deals,” added the source.
The UAE tycoon has
negotiating a takeover of Portsmouth Football Club, and it is thought
some of the funds could be made available to lure new signings to the
club in the January transfer window.
“Any bonus will not be paid
until December this year, so while it doesn’t impact on the funding for
the takeover, it does open the door to bringing in a few signings in
the January transfer window," said the source.
"There was talk
last month of Maradona getting involved with the club on a global
ambassador role, and this kind of cash would certainly help that and a
few other player signings that are being considered."
Al Fahim refused to comment on the bonus, saying it was a "private matter" between himself and the Royal Group.
Asked
about when the takeover itself would be complete, a spokesman for Al
Fahim said: “We signed the terms of agreement on July 20, which was
agreed by both sides, and the Sales & Purchase Agreement (SPA) was
sent from our side to the seller’s lawyers.
"We are waiting
for them to move forward with this document. Even though there is a lot
of media speculation about delays, Sulaiman Al Fahim is committed to
completing this deal as per the terms of agreement that was signed more
than three weeks ago.
"There is no delay from our side, the current owner has the SPA which we are ready to sign.”
Source: Arabian Business
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