Istithmar World, a subsidiary of Dubai World, has today confirmed the completion of the purchase of Kerzner International Holdings Limited’s 50 per cent interest in Atlantis, The Palm in Dubai for $250 million.
The deal was announced as part of the company’s comprehensive restructuring to improve its capital structure and “position it for sustainable, long-term growth as a global management company”, a statement said.
Istithmar World and KIHL jointly developed the resort which opened in 2008.
Kerzner has also handed ownership of Bahamas-based Atlantis Paradise Island, and the adjacent Bahamas One&Only Ocean Club to creditor Brookfield Asset Management.
Following the closing of this transaction to make Istithmar the sole owner of the hotel, Kerzner said it will continue to manage 1,500-room Atlantis, The Palm as part of a multi-year management agreement.
H.H. Sheikh Ahmed Bin Saeed Al Maktoum, chairman of Dubai World , said: “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.”
Istithmar was advised on the transaction by Moelis & Company, which acted as financial advisor, and New York law firm Wachtell, Lipton, Rosen & Katz.
“We are pleased to have reached a successful conclusion to our comprehensive restructuring, which significantly strengthens the company’s financial profile,” said Sol Kerzner, chairman of Kerzner International.