Istithmar Real Estate celebrates $10bn investment landmark

Istithmar Real Estate was established in April 2006 as a business unit under Istithmar PJSC, the investment arm of Dubai World. Its formation aimed to bring together the group's investment interests in commercial and industrial property, hotels and resorts, the leisure sector, retail, residential and mixed use developments.

In only 18 months, the company has built up an investment portfolio with an asset value of more than $10bn. Over that time, the company has invested in the V&A Waterfront in South Africa; in One & Only operator Kerzner and in Millenium Hotels and Copthorne operator CDL REIT; in Island Global Yachting; and in the Adelphi and in One Trafalgar Square in London, amongst others.

It is developing Dubai's premier residential golf community, Jumeirah Golf Estates, and purchased Pearl Valley Golf Estate in South Africa in May 2007. It is also building 38 easyHotel properties across the Middle East, North Africa and the Indian subcontinent. And earlier this summer, it purchased the most famous ocean liner in the world, QE2, with plans to create a permanent tourist attraction at The Palm Jumeirah in Dubai.

Speaking at the company's first annual staff meeting, Sultan Ahmed bin Sulayem, Chairman of Dubai World, said:

'The creation of Istithmar Real Estate saw us taking experts from across the Istithmar and Nakheel businesses, to create this single-focus business unit. I am pleased that the strong senior management has developed such a strong portfolio of investments.'

Alan Rogers, chief executive of Istithmar Real Estate, said:

'Eighteen months ago, we decided to focus the time and resources of Istithmar on the real estate sector. We never realised the scale of the investment portfolio we would be able to develop in that time and I congratulate the management team on their efforts.

'Istithmar Real Estate has become one of the world's leading real estate businesses, with a portfolio balanced between sectors and between geographies, and with a philosophy that looks for consistent growth based on acceptable risk.

'If the last 18 months have been about establishing our brand and our portfolio, the next 18 will be about extending our reach and our portfolio across the world.'

Mr Rogers confirmed that Istithmar Real Estate was actively looking at further acquisitions in the coming weeks and months.

He said:

'We have a long list of active opportunities into which we are looking. And of course, we are always interested in learning about new opportunities to extend our profile.

'Our real estate strategy is to earn exceptional returns through the acquisition and active management of substantial investments in key locations around the world. We look forward to announcing more and more such investments.'