Dubai firm transfers realty portfolio management
Dubai, December 10, 2011
Dubai Investment Group (DIG) has appointed private equity firm Silverpeak Real Estate Partners to manage its US and German real estate portfolio, the acting chief executive of the group said on Friday.
DIG is the real estate and asset management arm of Dubai Group, which is part of Dubai Holding, the investment holding company owned by Dubai's ruler, Sheikh Mohammed bin Rashid Al Maktoum.
'Dubai Investment Group, a subsidiary of Dubai Group, has engaged Silverpeak Real Estate Partners to manage its US & German commercial real estate portfolio,' said CEO Fadel Al Ali said in a statement.
Earlier on Friday the Wall Street Journal reported that Silverpeak would aim to improve the portfolio's value with a view to selling assets over time. It also said DIG would close its New York office.
Dubai Holding is currently restructuring an estimated $6.2 billion of debt it took on to finance acquisitions before the financial crisis and regional real estate downturn.
'Silverpeak will take on a number of DIG US staff as part of the agreement. We have built up a strong portfolio of 30 hotels, office and retail properties from which we expect to see strong returns over the remaining investment period,' the statement said.
Dubai has clawed its way back from the depths of its debt crisis, helped by an economic revival in trade and tourism and its safe-haven status during the Arab Spring popular uprisings in the Middle East, but still faces big debt repayments.-Reuters