The luxury resort Atlantis, The Palm in Dubai is now fully owned by Dubai World.
Dubai World, through its subsidiary Istithmar World PJSC has announced that it has bought out the remaining 50% stake in Atlantis, The Palm in Dubai from Kerzner International Holdings Limited (KIHL) for USD 250 million.
Atlantis in Dubai was opened in 2008 and was jointly developed by Istithmar World and KIHL, with 50-50 ownership.
H.H. Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of Dubai World , said:
“The performance of The Atlantis continues to exceed our expectations. This deal, allowing us to become the sole owner of Atlantis, The Palm Dubai, effectively consolidates our investment in one of our best performing assets, and one of Dubai’s landmark properties. This acquisition is in line with our strategy of managing our assets for value and investing selectively where growth opportunities exist.”
Atlantis The Palm has 1,537 rooms, a world class waterpark and 18 restaurants. The Resort has played an integral role in establishing Dubai as a world class tourist destination.
Kerzner Holdings will continue management of the resort as part of a multi-year management agreement.
Kerzner’s restructuring effort
The sale of Atlantis resort in Dubai was part of a complete restructuring of KIHL’s massive debt.
The other flagship resort which KIHL owned in the Bahamas was sold to its creditor Brookfield Asset Management (BAM). Brookfield will forgive about $175 million of junior debt for ownership of the Bahamas-based Atlantis Paradise Island, and the adjacent Bahamas One Ocean Club.
From earlier being an owner of resorts, KIHL is now positioning itself as the global luxury resorts management company.
Sol Kerzner, chairman of Kerzner International, said, “This acquisition is in line with our strategy of managing our assets for value and investing selectively where growth opportunities exist. we are pleased to have reached a successful conclusion to our comprehensive restructuring, which significantly strengthens the Company’s financial profile.
“With substantially less debt and a more flexible operating structure, Kerzner is well positioned for sustainable long-term growth as a global management company.”, he added.
Kerzner has struggled with debt since a $3.6 billion leveraged buyout in 2006 led by founder Sol Kerzner took it private for $3.6 billion.