Dubai World subsidiary Istithmar World has reportedly sold its 50% stake in Miami Beach's landmark Fontainebleau hotel. Sources told Reuters on Tuesday that the stake was sold to south Florida developer Turnberry Ltd. Financial terms of the deal, however, remained unknown.
According to Reuters, the deal is the latest in a string of asset sales by Dubai World companies. The state-run conglomerate had stepped up its divestment program following a $25 billion debt restructuring. Proceeds from Dubai World's asset sales will help Dubai's state-linked firms meet a heavy schedule of debt maturities in the next three years, the report said.
Reuters in September reported that the Fontainebleau deal was close to being completed. Dubai World had paid $375 million for its 50% stake in Fontainebleau Miami Beach in 2008.
Dubai World is one of the emirate's big state-owned conglomerates. Its portfolio contains some of the world's leading companies in their industries. Aside from Istithmar World, Dubai World's portfolio includes Drydocks World, Economic Zones World and a majority ownership of DP World, its website said.
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