Istithmar buys landmark Manhattan property

The purchase of the New York City trophy property for US$705 million follows on the heels of Istithmar's acquisition of London's One Trafalgar Square last month. The property was purchased from 230 Park Avenue Investors, LLC, of which Robert M. Bass of Fort Worth, Texas is a lead investor.

230 Park Avenue is a 34-story gold-domed office tower, in excess of 1.2 million square feet straddling Park Avenue at 45th Street. Built in 1929, 230 Park Avenue is one of two buildings that combine a direct connection to Grand Central Terminal with the prestige of a Park Avenue address.

Istithmar's Executive Chairman Sultan Ahmed Bin Sulayem commented:

"We believe 230 Park Avenue is an irreplaceable prime property in the world's largest real estate market. This particular investment represents the perfect fit for us as we continue to add outstanding assets to our expanding international real estate portfolio."

"The Jewel of Park Avenue," as it is often referred to, is surrounded by many of New York's finest hotels, restaurants and social clubs. Many multi-national corporations have also made Park Avenue the hub of their global operations. 230 Park Avenue is a particularly attractive corporate location as evidenced by its impressive roster of tenants including ING Baring, Tokio Marine, HSH Nordbank, Bank of Argentina, and PB Capital.

Financing for the acquisition of 230 Park Avenue is being provided by Credit Suisse First Boston. Istithmar is being advised on the transaction by Island Capital, a real estate focused firm headed by Andrew L. Farkas.

Reflecting on Istithmar's real estate investment interests, Bin Sulayem elaborated: "Within the real estate sector, Istithmar targets projects that are positioned to experience long-term substantial capital appreciation, rather than focusing exclusively on the yield of our properties." Moving ahead, Bin Sulayem said "We remain very bullish about key gateway cities like New York, London and Paris. We are also eyeing what we believe are tremendous opportunities across the various real estate asset classes in the Middle East, China, South East Asia and Eastern Europe."

The company's current real estate portfolio is almost evenly divided between the Middle East and the rest of the world, with 40 per cent in Dubai, a leading gateway city in the Gulf region.

Istithmar's other real estate investments include:

One Traflagar Square

Pursuing its strategy of investing in key gateway cities and in assets which we believe are poised to experience long-term capital appreciation, Istithmar acquired One Trafalgar Square for GBP 155 million. Located on a high profile island site on the south eastern corner of Trafalgar Square and commanding stunning views of the surrounding area, the building is a premier property in one of world's most recognized locations providing Grade A headquarters office accommodation.

Kerzner International

In the course of working with Kerzner over a number of opportunities, Istithmar developed a strong appreciation for Kerzner's management and business model. On this basis, Istithmar decided to acquire a 13% ownership position in the hotel developer and manager of Atlantis, Paradise Island and the One & Only brand of resorts (NYSE:KZL) (www.kerzner.com).

Atlantis, The Palm

In partnership with Kerzner, Istithmar is developing the $1.4 billion expanded version of Kerzner's world-class Paradise Island Property at the apex of the Crescent of The Palm, Jumeirah.

Al Burj Real Estate Limited

Istithmar has entered into a commitment to invest in Al Burj Real Estate Limited. The total equity commitment by investors in this project is AED 7 billion / USD 1.9 billion. Al Burj Real Estate Limited is a key investor in Phase 1 of the Madinat Al Arab project which is part of the Dubai Waterfront Development (www.dubaiwaterfront.ae).

Golden Mile (Souq Residence FZCO and Souq Palm FZCO)

Istithmar has formed a joint venture with a major Kuwait based real estate development company, IFA Hotels and Resorts, to develop the "Palm Golden Mile". This investment represents 50% ownership in Souq Residence FZCO and 50% in Souq Palm FZCO, the two companies that own and operate the Residential and Retail parts of the Golden Mile respectively. The Golden Mile is one of the most prestigious of all elements on the trunk of The Palm, Jumeirah (www.Nakheel.ae). The Golden Mile will encompass some of The Palm, Jumeirah's premier retail and apartment residences. The Golden Mile Residences will showcase 10 waterfront buildings, and the Golden Mile Retail will feature 220 of the world's most upscale stores and restaurants, designer boutiques, outdoor cafes, luxury shops, and formal dining (www.thepalmgoldenmile.com).

Sorouh Real Estate Company

To capitalize on opportunities in the UAE's capital, Istithmar has invested in this newly established Abu Dhabi-based real estate development company (www.sorouh.com).

Island Global Yachting

Istithmar has taken a 29% ownership position in Island Global Yachting, a company formed by Island Capital that is amongst the world's foremost designers, developers and operators of mega-yacht oriented, mixed-use properties.

Istithmar Warehouses FZE

In order to exploit opportunities in the industrial center of Dubai, Istithmar has formed Istithmar Warehouses. The company was established to own, develop, lease and manage custom-built warehouses and light industrial units primarily for multinational companies seeking to establish a base in Dubai. Current clients include JVC and potential clients include a host of multinational companies such as Hitachi, Goodrich and Honda.

Yacht Haven Grande

Istithmar has invested in a US$200 million mega-yacht oriented mixed use real estate development in the US Virgin Islands.

Canal Point

Canal Point is a mixed-use development created by Istithmar. The key elements are a hospital developed in partnership with Bumrungrad Hospital (www.bumrungrad.com), a 250-room hotel, a spa and wellness center, two luxury residential towers and three office towers, all interlocked with retail and outdoor space. Canal Point aims to be one of the most attractive working and living spaces in Dubai, anchored around a concept of health and wellness extending into all aspects of the residents' daily lives.