UPDATE 1-Dubai World makes first major asset sale since crisis

Tue Jun 11, 2013 6:33am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Economic Zones World sells warehouse developer Gazeley

* Gazeley sold to Toronto-based Brookfield Property Partners

* Proceeds from sale to go to $1.2 bln JAFZA loan repayment

By Dinesh Nair and Mirna Sleiman

DUBAI, June 11 (Reuters) - Dubai World, the state-linked group whose $25 billion of debt brought the emirate to the brink of financial collapse in 2009, has sold one of its UK assets as part of its efforts to repay creditors.

A unit of Toronto-based investment company Brookfield Asset Management has bought logistics warehouse developer Gazeley from Dubai World subsidiary Economic Zones World (EZW), the Canadian firm said in a statement on Tuesday.

It did not disclose the value of the transaction.

The sale is the first major divestments of a foreign asset by Dubai World since it agreed on a debt deal with creditors in 2011. The restructuring agreement promised full repayment to creditors through a series of disposals of overseas assets bought at peak prices in 2006-07.

Gazeley is one of four businesses held by EZW, which operates technology, logistics and industrial parks as well as the Jebel Ali Free Zone (JAFZA), a business district, under the Dubai World Group umbrella. Its portfolio includes 524,000 square metre of assets and land bank of 1.3 million square metres.   Continued...