Saturday 28 November 2009

More assets still to be monetised

As Dubai World prepares to restructure amid the firestorm of global anger over a potential default involving its real estate unit’s bond, bankers say plenty of assets could still be monetised.

The government-owned holding company had assets with a book value of $100bn at the end of 2008, with debts totalling about $40bn, including global ports operator DP World, which has been ringfenced from the debt rescheduling.

But the distressed debt surrounding the property company Nakheel, the investment firm Istithmar and the parent company is about $25bn. Of Dubai World’s $100bn in assets, it is estimated that the current market value could be about $75bn, depending on the value apportioned from the rise and fall in asset prices since 2006.

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