Dubai World, the investment holding firm of the Dubai government, said its real estate arm is looking to expand in the United States and Asia

Dubai World, the investment holding firm of the Dubai government, said its real estate arm is looking to expand in the United States and Asia and is set to make an acquisition soon.

‘We like the market in Singapore and we’re evaluating opportunities here. We are looking at China, Vietnam, Thailand,’ Dubai World Chairman Sultan Ahmed Bin Sulayem told Reuters on the sidelines of a press briefing on Thursday.

Dubai World’s real estate firm, Nakheel Group — the developer of three palm-frond shaped islands off Dubai’s coast — recently said it would launch an international arm to pursue projects outside of Dubai.

In December last year, it sold the world’s largest Islamic bond, raising US$3.52 billion.Asked what the timeframe was for Nakheel’s next acquisition, Mr Sulayem said he hopes ‘that it can come within the next few months,’ adding these would be in Asia and the US.

Dubai World holds a multi-billion dollar portfolio that includes British ports operator P&O and has been taking on considerable debt to fund its acquisitions for its various businesses.

The investment firm’s private equity arm, Istithmar, has also been buying up US property aggressively. Last year, it bought a 73 per cent stake in the Mandarin Oriental New York, acquired retailer Loehmann’s, the Knickerbocker Hotel in New York, and office block 280 Park Avenue in April.

Istithmar and Nakheel have also said that they plan to develop tourist resorts and real estate projects in African nations including Kenya and Mozambique to tap rising leisure demand.

Istithmar recently made an US$825 million offer for New York luxury retailer Barneys in June, but its bid could be scuppered by Japan’s Fast Retailing , which later offered US$900 million.

In November 2005, Dubai Ports World, the investment firm’s port operator and the world’s third-largest container port operator, said it was planning an initial public offering (IPO) within two years.

Its holding company issued a US$3.5 billion Islamic bond, or sukuk, convertible into shares in any IPO.

Mr Sulayem was in Singapore to finalise the acquisition of Singapore shipyard firm Pan-United Marine by Dubai Drydocks World, the global maritime arm of Dubai World.

Dubai Drydocks said in a statement that it has received acceptances of approximately 84.8 per cent of shares in Pan-United Marine.

Source: The Business Times, 12 July 2007