Tuesday, Jun 11, 2013
(This article was first published on Monday)
By Leila Hatoum
DUBAI--The Dubai government has sold its entire holding in the U.K. logistics company Gazeley to Brookfield Asset Management Inc. (BAM, BAM.A.T) for an undisclosed sum, Dubai officials said Monday.
The sale is part of a recent move to take advantage of higher global asset prices by unloading stakes in overseas companies accumulated by Dubai entities before the financial crisis.
"We have finalized and sold Gazeley to the U.S. asset-management giant Brookfield," said a senior Dubai government official.
The official wouldn't disclose the sale price, though another person close to the sale said Brookfield paid much less than the price Dubai paid to acquire the company in 2008, just before the global financial crisis took hold. The purchase price also wasn't disclosed.
The stake in Gazeley was held by Dubai's Economic Zones World, itself a subsidiary of the government-owned conglomerate Dubai World.
Gazeley is a U.K.-based global developer of logistics warehouses and distribution parks. It is one of several assets that were slated for sale by Dubai World this year, including Dubai's stake in MGM Resorts International (MGM).
Brookfield is a global alternative asset manager with more than $175 billion in assets under management. It focuses on investments in property, renewable power, infrastructure and private equity.
Brookfield officials weren't immediately available for comment on the Gazeley purchase.
While saying it plans to sell nonstrategic assets this year, Dubai World denies suggestions that it is involved in a fire-sale to meet its debt-repayment obligations. Global asset prices have recovered strongly over the past few months, even if many companies are still worth less than peak valuations in 2006-2007.
Dubai World completed a $25 billion debt reorganization in 2011, hurt by the global crisis and the pricking of the emirate's property bubble.
Late last year, Dubai rejected offers for its 5.3% stake in MGM on valuation grounds, but it remains open to selling the asset for the right price, government officials have said.
Dubai World, through its Infinity World unit, originally purchased a 9.5% stake in MGM Resorts in 2007 for around $2.4 billion. The holding has since been diluted through new share issues, and is valued at about $400 million based MGM's current share price.
Write to Leila Hatoum at leila.hatoum@dowjones.com
(END) Dow Jones Newswires
11-06-13 0330GMT
