Kerzner offloads half stake in Atlantis Hotel Dubai.

Dubai World unit, Istithmar World, and co-owner of the Atlantis Hotel located on the Palm Jumeirah island in Dubai, the primary tourist destination of the United Arab

Emirates (UAE), has agreed to buy the remaining fifty per cent of the property from Kerzner International Holdings Limited.

Kerzner, moving forward with a major overhaul of its current structure, made the announcement of the Atlantis sale intertwined with statements defining its revamped

strategy and the need to bolster its capital reserves. The offloading of assets was designed to position the South African firm, "with substantially less debt and a more

flexible operating structureAo, therefore rendering it more appropriate Aofor sustainable, long-term growth as a global management company".

In terms of debt restructuring, creditor Brookfield Asset Management was also handed the keys of Atlantis Paradise Island and adjacent One & Only Ocean Club in

the Bahamas, giving them complete ownership. This transaction was concluded in return for BrookfieldAAEs write off of US$ 175 million in subordinated debt.

Istithmar is now the sole owner of the 1,500 room Atlantis, The Palm in Dubai; although Kerzner has confirmed that it will continue to manage the hotel under the terms

of a management contract spanning a number of years into the future. Parent Dubai World, finalised the restructure of almost US$ 25 billion in debt in March 2011, divided

into two phases to be repaid over 5 years and 8 years at a fixed interest rate of 2.4 per cent, respectively. Nakheel, the master developer of the Palm Jumeirah, also

originally a member of the Dubai World conglomerate, but now government-owned, concluded the restructure of US$ 16.1 billion in standalone debt in August

2012.

Chairman of Dubai World, Sheikh Ahmed Bin Saeed Al Maktoum, was quoted in comments made on the acquisition. "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," he added.

Over 2,000 celebrity guests attended what was billed as Aothe most expensive launch party in historyAo, rumoured to have cost close on US$ 24 million, for the official opening

of the Atlantis in Dubai on 20th of November 2008. One million fireworks, more or less ten times the volume employed at the Beijing Olympics opening ceremony, illuminated

the Palm Jumeirah that night, while organisers claimed that the display was visible from space.

Copyright Andy McTiernan. All rights reserved.

Provided by Syndigate.info an Albawaba.com company