Dubai World to sell stake in Atlantis The Palm

Istithmar, the investment arm of the government owned Dubai World, is looking to sell the Atlantis The Palm resort on Dubai’s man-made Palm Jumeirah island, reports the Financial Times.

The state-run investment firm only took full control of the property last year when it paid AED 918 million (US $250 million) for a 50% stake held by Kerzner International.

Since then it has overseen the refinancing of the hotel’s debts with an AED 3.23 billion ($880 million ) loan led by Abu Dhabi Commercial Bank earlier this year.

However, it would appear that Istithmar is keen to raise funds ahead of a scheduled AED 20.2 billion ($5.5 billion) debt repayment in September, 2015.

It is reported that the also state owned Investment Corporation of Dubai is currently in talks to purchase the Atlantis The Palm resort as part of an effort by the government to buy indebted domestic assets.

Atlantis The Palm has yet to respond after being approached by Hotelier Middle East for comment.