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Cash in before you’re forced out

Cash in before you’re forced out

Dubai’s companies have come a long way since they were surrounded by doomsday predictions and debt last year. But as they start to offload assets, are they jumping or are they being pushed?

December 12, 2010 8:51 by



DIC is the private equity arm of Dubai Holding, and it’s not the only major Dubai company offloading assets. Early this week the National also reported that Istithmar World is considering selling its share in a shopping and entertainment development in Cape Town. Istithmar, which is owned by Dubai World, hasn’t confirmed the speculation surrounding the sale of the Victoria and Alfred Waterfront shopping and entertainment complex, but a source within Dubai World has told the paper Istithmar is prepared to sell if it receives an attractive offer.

And though Dubai World has recently worked on a debt-restructuring, the past year has seen it offload a number of assets, including a $254 million stake in the former Metropole Hotel building in London, International Hotel Investments (IHI) and an exit from a $50 million fund to develop and own 30 no-frills Tune hotels.

The sale of the waterfront shopping and entertainment complex is still in its speculative phase, but Dubai World seems to have the right idea – sell the assets when you can, at your own discretion and in your own time. In the case of Alliance, DIC, by holding on too long, seems to have lost out against its will and in a deal that was beyond its control.



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2 Comments

  1. Salman Rahim on December 14, 2010 1:53 pm

    Your analysis shows that you are out of your depth and lack the sophistication to infer judgement on financial transactions that are calculated and deliberate. Every private equity investor knows that sometimes its best to walk away than throw more good money after bad. This is not a story of being out of control, they knew exactly what they were doing and how to do it. Check your facts and maybe you want to look into another of their companies, which they handled skillfully in a manner of their choosing.

     
  2. Abdullah Sadeq on December 14, 2010 1:58 pm

    Very true, Dubai Inc. is in control. Besides, we did not see any attempts on the report’s part to reach out to the companies for comments or perspective. Tabloid journalism at its best!

     

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