Investment firm owes $1.6bn to mostly local banks
Dubai Real Estate Corporation, the state owned land bank, has taken over management of Zabeel Investments, the indebted firm owned by Dubai’s Crown Prince, the chief executive of Investment Corporation of Dubai said on Tuesday.
A Reuters report said that although sources had claimed that DREC had taken over the company, which owes approximately $1.6bn to mostly local banks, Mohammed al Shaibani said that this wasn’t the case.
“Zabeel is only managed by DREC, the ownership is still the same,” he said on the sidelines of a real estate conference.
However, sources told the newswire that DREC will lead fresh debt discussions after talks on restructuring debt fell through in January of this year.
Zabeel Investments is owned by Crown Prince Hamdan bin Mohammed al Maktoum and was formed in 2006. It has hospitality, property and private equity assets, with the Zabeel Saray hotel on Dubai’s Palm Jumeirah one of its most prominent assets.