The Corinthia Group has signed a major lease agreement with an international oil company for office space at its newly developed commercial office block within the Corinthia Bab Africa Hotel and Commercial Centre in Tripoli, Libya.
A 10-year lease agreement was signed in the past days, with Corinthia allocating just over 700 square metres of prime commercial offices to Woodside Petroleum, a major Australian oil company that has recently set up business in Libya.
The signing of the contract follows that finalised with another major oil company in 2003, Wintershall AG of Germany, a subsidiary of BASF. This German firm has since relocated its headquarters in Libya to Corinthia's Commercial Centre, taking up over 4,600 square metres on a long-term lease basis.
With 72 per cent of the commercial office centre now leased to these and other blue chip companies, negotiations with major international operators in Libya are ongoing to secure long-term leases for the remaining space, the hotel group said.
Contracted income from the commercial centre to date stands at €4 million per annum and increasing over the years, with another €1.5 million potential income from the remaining space expected to be contracted in 2004.
A spokesman for the group said that recent political developments in Libya have signalled an increase in demand for hotel services and commercial offices in Tripoli. The five-star deluxe Corinthia Bab Africa Hotel and Commercial Centre in central Tripoli, which was officially inaugurated less than four months ago, is uniquely positioned to benefit from this increased demand.
The spokesman said hotel occupancy rates over the past months have been increasing month on month, with the 300-bedroom hotel commanding premium rates on account of its unrivalled service, architecture, interior décor and range of amenities.
Likewise, the adjacent commercial office block was also unique in Libya. Its location, right at the heart of Tripoli's business district and right next to the Bab Africa Hotel, make it an ideal base for major companies operating in the country.
"The Corinthia Bab Africa and Commercial Centre is a major investment that is tapping into the strong and increasing market for hotel accommodation and office space in Tripoli.
"We look to the future of Libya with continued confidence and enthusiasm and, having been in business in this neighbouring country for close to 30 years, we are embarking on strategies to maximise on these new opportunities in the hotel and other sectors", group chairman Alfred Pisani said.