Dubai World will expand its footprint in Africa by recreating the Nakheel model of tourism and construction hot spots in Tanzania, Botswana, Swaziland and Mozambique, a senior executive said in Dubai yesterday.
"We are looking at the untapped [tourism] potential of a lot of African countries, especially those with game reserves. We will take the Dubai model of development to these places, most of which are on the coastline," said James Wilson, Chief Executive Officer of Nakheel Hotels and Resorts (NHR).
Mother company Dubai World will deploy subsidiaries NHR and Istithmar, the investment arm, to develop these places jointly, on the lines of the Victoria and Alfred (V&A) Waterfront in Cape Town, South Africa, which it bought last month for $1 billion (Dh3.67bn) in partner ship with London and Regional Properties.
The consortium will invest another Dh3.67bn to develop the waterfront in time to cash in on the tourism rush, which is likely to be created by the 2010 Fifa World Cup.
The total investment of $2bn (Dh7.34bn) in the V&A Waterfront is being shared equally by the two partners in the consortium, with a third partner, a group of Black Economic Empowerment investors, not putting in any cash.
As much as 70 per cent of the total investment is being raised through secured loans from South African banks, Wilson told Emirates Today in an earlier interview, while the remaining 30 per cent is being pumped in as equity by Istithmar and London and Regional Properties.
NHR is also building a One & Only branded hotel in Morocco in partnership with Kerzner International, Dubai World Chairman Sultan Ahmed bin Sulayem said.
"The group's entry into Cape Town has opened a lot of doors for us in Africa," said the chairman. He said he sees "a lot of other opportunities" for Dubai World in the African real estate, mortgage and resorts sectors.
"The V&A project contains so many properties, we will have to look at the mortgage market," bin Sulayem said. "Whether we start new businesses or buy is undecided."
Istithmar has bought the Adelphi, one of London's best-known art deco buildings near The Strand, for more than 300 million (Dh1.92 billion), said CEO Alan Rogers. "Adelphi is a trophy office building," he said.
Tenants of the 300,000 square foot building include the United Kingdom's Department of Work and Pensions.
Last year, Istithmar bought One Trafalgar Square for 155m (Dh992m). Other acquisitions include 280 Park Avenue, 450 Lexington Avenue, the Knickerbocker Hotel and W Hotel Union Square in New York.
By Yazad Darasha
© Emirates Today 2006
