No impact in Legoland plans despite stake sale

Dubai Holding’s sale of its stake in the operator of the Legoland amusement parks will not impact plans to develop a Dubai based version of the attraction, the UK based operator behind the plans has insisted.

However, a spokesperson from Merlin Entertainments, the operator of the Legoland theme parks around the world, admitted that the economic downturn slowdown in the emirate has led to slow progress being made on the development of the attraction.

This week it was confirmed that Dubai International Capital (DIC), the international investment arm of Dubai Holding, had sold its seventeen percent stake in Merlin.

Related: Legoland Dubai ‘will go ahead’ despite delays - developer
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The sale was part of a series of assets offloaded this year by government owned holding companies Dubai Holding and Dubai World, which are both undergoing multi billion dollar debt restructuring programmes.

“This will have no impact,” a spokesperson from Merlin said regarding the impact DIC’s sale of its Merlin stake would have on the development of Legoland Dubai.

In an emailed statement, she said: “Although the broader economic issues in Dubai/Middle east are of course a factor - but if and when market conditions are right then this project still remains one Merlin is very keen to pursue."

In April, Merlin admitted that “given the current situation in the region work on the project has been delayed, but both Merlin and our local partners remain entirely committed to building a Legoland Park in Dubai.”

In May 2008, Merlin, the world’s second largest visitor attraction operator, announced a strategic alliance with Tatweer, a member of Dubai Holdings, to create Legoland Dubailand.

The AED912m ($248.28m) project was to occupy a total of three million square feet inside Dubailand. Billed as the first Legoland theme park to be built outside of North America and Europe, it was to include more than 40 interactive rides, shows and attractions and was originally scheduled to open in 2011.

In June 2008, Merlin’s CEO Nick Varney told Leisure Manager magazine that the company was “very interested” in working with Tatweer to set up a Dubai branch of the famous Madame Tussauds waxworks museum.

The Merlin spokesperson added: “Currently we have no agreed plans to bring Madame Tussauds to Dubai - although it remains a market in which we are interested for further future development for our brands."