Copyright Imre Solt - Usage under GFDL
The National reports that the Abdullah Brothers have sold one of their twin towers in Dubai to pay back what the The National charitably refers to as debt arising from "unauthorized" investments. Applying that same standard, I guess one could characterize Brother Bernie's fund as having engaged in some "unauthorized" investments. It was no doubt an oversight that he didn't give his investors up-to-date and accurate performance figures.
No word on how much was received for the building. A safe assumption is that the sale involved a substantial haircut.
Good luck to the Brothers on raising the money to make Damas whole for their own unauthorized oversight.
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2 comments:
I'm making assumptions on a number of factors here. I guess the net area of one of the 49 storey towers is approx. 400,000 sqft. In the current market this may sell for Dhs 400m - at a push, and not under duress... Investment would have been in the region of 300m for each tower (land + construction, plus oncosts)- which was most likely highly geared.
How much are they left with? Maybe 30, maybe 50m Dhs?
Many thanks.
Useful information.
In this market they will probably have to sell assets at distressed prices. Leverage is quite painful in a downturn.
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