Dubai's Istithmar loses $282m hotel in auction
Dubai, December 9, 2009
Dubai World's investment arm Istithmar World said on Wednesday it was disappointed it lost its W Hotel in Manhattan in a foreclosure auction on Tuesday, and that the loss was unconnected to the restructuring of its parent company's debt.
'We are disappointed that the lender has chosen this route as we felt that real progress was being made in negotiations with the various lenders to restructure the debt of W Union Square for the future,' a spokesman at Istithmar World said.
'This is totally unconnected to the restructuring of the debt of Istithmar parent Dubai World. Istithmar World is not included in that process,' he added.
Istithmar World, lost the hotel for $2 million, after buying the property for $282 million in 2006, the Wall Street Journal reported earlier.
LEM Mezzanine, a private-equity fund affiliated with real estate investment company Lubert-Adler Partners, won the bid.
Dubai World on November 30 said Istithmar World was among several of its units that would not be part of its $26 billion debt restructuring programme. - Reuters