Investment Corp of Dubai (ICD) said it has acquired the Atlantis hotel from a Dubai World arm. The financial terms of the said deal were not disclosed, according to Gulf Business.
The sale of Atlantis adds to Dubai World's series of asset divestments. The global holding company needs the proceeds to pay back its massive debt after undergoing a USD25 billion restructuring project in 2011. The conglomerate had committed to divest non-core international assets as part of its debt-restructuring program, the report explained.
The Atlantis hotel sits at the head of a man-made palm tree-shaped island. The hotel was established in 2008 in a joint venture between Kerzner International and Istithmar World of Dubai World. Istithmar acquired full control of the structure in April 2012, the report recounted.
ICD deputy chief executive officer Khalifa Al Daboos said in a statement, "Our acquisition of an asset that is a major contributor to the domestic tourist industry is in line with our overall strategy to support long-term sustainable growth for Dubai."
Dubai World's investment arm was hit by financial crisis in 2009 as asset values took a steep drop and access to credit ran out, Gulf Business reported.
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