Dubai World Transfers Hotels, Property to Istithmar (Update2)

Dubai World, a state-owned holding company, said it transferred select hotel and real-estate assets, mainly in international markets, to its private equity company Istithmar World PJSC as part of a reorganization.

Hamza Mustafa will join Istithmar World from Nakheel PJSC, a property company within the same group, as managing director with responsibility for the hotels and buildings transferred to Istithmar, Dubai World said in an e-mailed statement today.

The restructuring is “positive because it means they realize the problems they have and they are working at solving them,” said Rami Sidani, who manages $250 million as head of Middle East and North Africa at Schroder Investment Management Ltd. in Dubai. “The restructuring is needed to cut costs, consolidate debt and make sure that obligations are monitored.”