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DUBAI CRISES Nakheel Posts US$3.65 Billion Loss in H1

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Posted: 10 Dec 2009 | 3:50 am

Back of Dubai World's current USD$59 billion dollar debt crises, real estate arm Nakheel has reportedly lost US$3.65 billion in the first half of the year, mainly on asset value write downs. As covered in the financial press the company has suspended debt repayments on it's Islamic Bond Issue and a workout situation continues to be unclear.

Thailand continues to have some exposure in term of property and hotel grade assets with Nakheel being a joint venture partner in the W. Koh Samui Retreat and Residences and W Bangkok. Though both projects are at various stages of development hence capital and debt formation are in place so it's doubtful there will be issues. Another Dubai World spin off Istithmar who had been a shareholder in publically listed Raimon Land and has disposed of shares, still retains an ownership interest in Bumrungrad PLC.

DO YOU LIKE THIS?

do you see Nakheel doing any significant investments (long term) in Phuket ?

Bill Barnett responds:
Doubtful at this point as they need to get their existing assets under development up and producing cash flow such as the two W's in Thailand, longer term they need yields to cover debt.

Robin Banks, 10 Dec 2009 | 10:33 am

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