Dubai World Said Planning to Sell Prized Assets for $19.4 Billion

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Dubai Atlantis
The Atlantis hotel, built on the man-made Palm Jumeirah island off the Dubai coast is shown. (AFP/Getty Images)
Dubai World plans to sell off some of its most prized assets in order to raise as much as $19.4 billion to pay off creditors, Reuters reported.

The state-owned conglomerate told investors last month that the need to restructure was "urgent", Reuters said, citing a document handed out at an investor meeting.

The document says Dubai World plans to dispose of assets including stakes in luxury retailer Barney's, Dubai's Atlantis Hotel and casino operator MGM Resorts International (MGM).

The company told investors that selling assets could generate as much as $19.4 billion over eight years.

The company urged patience, saying that selling the same assets now would raise no more than $10.4 billion.

"DW (Dubai World) lender recoveries (will be) significantly enhanced if DW is given time to rebuild and realize value over a five to eight year horizon," the document said, according to Reuters.

Dubai world also plans to hire a new managing director and chief financial officer, Reuters reported. Aidan Birkett, the officer-in-charge of restructuring, will remain in his post until December.

Istithmar, Dubai World's private equity unit, will raise as much as $4.5 billion over five years. The unit, which owns most of the company's overseas assets, has identified assets including ports operator DP World and Dubai Maritime City as "strategic assets" which could generate as much as $11.8 billion when sold over an eight year period.
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