Loss-making Abu Dhabi TDIC sells key project
Dubai, June 18, 2013
A joint venture between Abu Dhabi investment fund Mubadala and US-based Prudential Financial has bought a newly built residential development on Saadiyat Island from the emirate's loss-making tourism development company.
The state-owned Tourism and Development Investment Company (TDIC), which is also building local branches of the Louvre and Guggenheim museums on the island, warned last month it might have to sell assets this year.
Mubadala Pramerica Real Estate Investors (MPREI), a 50-50 joint venture launched in 2010 between Mubadala and Prudential's real estate arm, has bought phase one of Saadiyat Beach Residences from TDIC, the companies said on Monday.
They did not disclose how much was paid for the luxury development.
The property is subject to a five-year leaseback to TDIC, in which the tourism firm will manage leasing the residences on behalf of MPREI. The project was launched in the fourth quarter of 2012 and is currently 80 per cent leased, the statement said.
The first phase of the Saadiyat Beach Residences comprises 285 units over three five-storey buildings. The next phase, which is scheduled for completion in the third quarter of this year, consists of 210 units.
TDIC said last month it had posted a widening loss in 2012 amid the emirate's property slump and that it could take seven years to turn a profit.-Reuters