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Mon 27 Aug 2012 12:32 PM

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Dubai's DIC sells stake in $300m MENA infrastructure fund

Dubai Holding private equity arm sells fund to Islamic investment firm Fajr Capital

Dubai's DIC sells stake in $300m MENA infrastructure fund
Dubai, Sheikh Zayed Road at night

Dubai International Capital (DIC), the private equity arm of Dubai Holding which restructured US$2.5bn debt in April, sold its stake in a US$300m Middle East North Africa infrastructure fund to Islamic investment firm Fajr Capital.

Fajr, which is backed by prominent investors such as Abu Dhabi Investment Council and Malaysia's state investor Khazanah Nasional Berhad, will manage the fund along with its two other partners HSBC Holdings and Waha Capital, it said in a statement on Monday.

All the three partners will have equal ownership stake in the fund post the deal, one source familiar with the matter said.

The MENA Infrastructure Fund was formed in 2007 to invest in infrastructure and energy projects in the Middle East and North Africa. At the time of launch, the three sponsors of the fund had committed US$50m each as initial investment.

The fund has investments in Alexandria International Container Terminals (AICT) and Muscat-listed United Power Company, according to its website.

DIC, a unit of the conglomerate owned by the emirate's ruler, aims to raise more than US$150m from asset sales in 2012, its CEO said in April.

It sold hotel operator Ishraq Dubai to Almulla Group in October last year and exited its 45 percent stake in valve maker KEF Holdings.

The firm, which was hard hit during the financial crisis due to use of excessive leverage in its investments, had to hand over its ownership of UK budget hotel chain Travelodge as part of a debt restructuring deal.

Fajr Capital has US$700m in committed capital, it said in the statement.

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