Istithmar World, the investment arm of indebted conglomerate Dubai World, has reportedly sold its stake in South Africa’s Victoria and Alfred Waterfront real estate development in a deal valued at more than $1.5bn.
The Cape Town project, in which Istithmar holds a 37.5 percent stake, has been sold to a consortium of South African firms for $1.46bn, according to the Mail & Guardian (M&G).
The group comprises South African property firm Growthpoint, banking conglomerate Absa and the state-owned Public Investment Corporation, the paper said.
Istithmar is understood to have accepted a mix of cash and shares for its stake while its partner, UK-based London and Regional Properties, accepted cash.
The paperwork is expected to be finalised on Monday, the report said.
A spokesperson for Istithmar World on Sunday told Arabian Business: “We are not commenting on this at the moment.”
State-backed Istithmar World took a 37.5 percent stake in the Waterfront four years ago, as part of a $1bn joint deal with UK-based London and Regional Properties.
The firm’s portfolio includes luxury US retail chain Barneys New York, Canada-based dance troupe Cirque du Soleil, US discount retailer Loehmann's and the Mandarin Oriental hotel in New York.
In November, Istithmar contributed 64 percent of a $25m rescue package for Loehmann’s after the retailer was forced to file a Chapter 11 petition in New York.
Last month, Dubai announced it may consider selling parts of government-owned companies as it continues to restructure almost $25bn in debt.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.