Print Edition
August 2010 
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Concerns Grow Over Istithmar Portfolio Companies |
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Muazzin Mehrban, December 2009 |
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(01 December 2009)
Dubai World, the parent company of sovereign private equity firm, Istithmar, has asked creditors to extend its debt obligations, putting into doubt the future of the firm and its portfolio companies. Dubai World currently has around $60bn in debt, with $4bn due in the next month. Dubai World has asked to hold off all payments until May 2010 at the earliest.
Istithmar has invested over $3.5bn in 35 companies including names like Le Cirque du Soleil, publishing house EMPG, and market bank Standard Chartered. In addition, the firm invested over $940m in US fashion chain Barney’s in 2007, pouring money into the business in 2009 after failing to find a buyer.
Istithmar holds a range of real estate investments in the UK which include leisure resorts such as Turnberry in Scotland.
In addition, Istithmar last year purchased the Metropole Building and 10 Whitehall Place in London.
The firm has already parted with two real estate holdings, selling Marcoal House on London’s Regent Street and another building close by, to Great Portland Estates, according to its recently released half-year financial statements.
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