Investment Corp. of Dubai took over leadership of Kerzner International Holdings, the hotel operator that built Atlantis resorts in the Gulf emirate and the Bahamas.
ICD, which holds stakes in United Arab Emirates government businesses from transportation to heavy industry, purchased a “significant” stake in Kerzner, it said in a statement today without disclosing the size or cost. Mohammed Al Shaibani, ICD’s chief executive officer, will become chairman of Kerzner.
Founder Sol Kerzner has seen the company shed assets in sales and refinancing deals over the last several years as it struggled to repay debt. The operator of the Atlantis and One&Only resort brands handed ownership of the Bahamas Atlantis to creditor Brookfield Asset Management (BAM:US) Inc. in a 2012 debt agreement and sold 50 percent of the Dubai hotel to Istithmar World, a unit of Dubai World, for $250 million. ICD acquired the Dubai Atlantis on the Palm Jumeirah artificial island earlier this year, it said.
ICD purchased the stake from the founding Kerzner family and other institutional investors, according to the statement. Istithmar, affiliates of Goldman Sachs Group Inc. (GS:US) and Colony Capital will continue to have significant holdings in Kerzner, it said.
“This is a significant milestone in my life after a long and happy career in the tourism industry and I wish the company well,” Kerzner, who founded the company in 1994, said in the statement. “I am confident that with ICD’s guidance, the company will fulfill on its upcoming expansions towards further growth and global reach.”
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