ABU DHABI // Dubai World, the government-owned ports and property conglomerate, is consolidating the property development and management roles of some of its subsidiaries under Nakheel, the company said in a statement. All property development and management activities of Dubai Maritime City, Leisurecorp and Dubai Multi-Commodities Centre (DMCC) will be shifted to Nakheel, the company said. The move come as companies across the sector are consolidating their activities to survive the decline in sales and prices that started last Autumn.
AlixPartners, the corporate turnaround firm that is advising General Motors on its bankruptcy, has been hired by Dubai World to assist with "integration planning", Dubai World said, adding that the "process will be completed over the summer". The team at AlixPartners is also advising on Nakheel's US$3.5bn (Dh12.84bn) Islamic bond that is coming due in December, sources close to the company said earlier this week. How the company deals with this debt could impact the cost of borrowing for other Dubai Government-related companies in the future, analysts have said.
Last month, Dubai World said it had merged the property divisions of Nakheel and DMCC to "better accommodate market conditions and optimise resources and expertise", a DMCC spokesman said at the time. DMCC is the master developer of the Jumeirah Lake Towers development off Sheikh Zayed Road. Dubai Maritime City, which is fully owned by Dubai World, is a property development on a man-made peninsula near Port Rashid that will cater to the international maritime industry, with a marina, office and residential towers, warehouses and free-zone benefits. It is scheduled to be fully operational by 2012.
Leisurecorp, also fully-owned by Dubai World, develops golf courses and other recreational facilities. firstname.lastname@example.org