Istithmar sells stake in Cape Town project

Dubai World unit in $1.46bn deal for South Africa’s Victoria and Alfred Waterfront development - report
Istithmar sells stake in Cape Town project
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.(Getty Images)
By Shane McGinley
Sun 12 Dec 2010 05:28 PM

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.

 

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