JEDDAH, 14 September 2006 — In a move to increase its real estate business, Istithmar has launched Istithmar Leisure, a 100 percent subsidiary which focuses on asset management and value-added offerings in the leisure sector.
An investment holding company established in 2003 and indirectly owned by the government of Dubai, the company focuses on private equity, real estate, and alternative investments. It is headed by Sultan Ahmad Bin Sulayem and affiliated with Dubai Ports, which Sulayem chairs.
Istithmar also announced the appointment of David Spencer as chief executive officer of Istithmar Leisure.
Operating under the real estate umbrella of Istithmar, Istithmar Leisure will manage key leisure investment projects on behalf of Istithmar. The initial portfolio includes Jumeirah Golf Estates, Nakheel Marinas and Island Global Yachting; the company will also manage all beach and recreation clubs in the Nakheel portfolio.
“Dubai has set the pace for the phenomenal growth of leisure in the region by pioneering integrated leisure development projects,” said David Jackson, chief executive officer of Istithmar “We are well placed to capitalize on this growth by defining investment strategies for both existing as well as proposed leisure developments that aim at unlocking growth and expansion potential for our leisure investment projects.” As part of Dubai World, the consolidation of Istithmar’s and Nakheel’s leisure related assets under Istithmar Leisure is in line with the holding company’s aim to shape Dubai into the world’s leading leisure and lifestyle destination.
As its CEO, David Spencer will provide strategic direction and lead the growth of Istithmar Leisure. Spencer has been given specific charge of constructing dynamic teams to ensure that the leisure products — both recreational and residential — meet the expectations of all residents and visitors to Dubai.
Spencer said that Istithmar Leisure would play a dynamic role in raising the stakes of Dubai in the global leisure industry. He opined that with such prestigious projects in its portfolio, Istithmar Leisure would drive the development of the Group’s leisure assets and identify high yielding investment options. “I am extremely excited with the prospect of leading a talented team and I look forward to achieving the company’s ambitious target.”
Prior to joining Istithmar Leisure, Spencer was director of marketing and brand management of Nakheel, playing a pivotal role in restructuring and rationalizing its marketing strategies. He joined Nakheel in September 2004 as director of Nakheel Golf to spearhead the company’s foray into golf industry, with the launch of Jumeirah Golf Estates.
Istithmar made headlines in January 2006 when Dubai Ports tried to buy control of six US ports. It dropped its bid after a storm of US political opposition grounded the deal. When Dubai Ports World conceded that the deal would not go ahead as planned, it emerged that Inchcape Shipping Services (ISS) has had extensive interests in the US for many years.
ISS arranges pilots, tugs and dock workers for shipping companies and works with the US Customs to ensure the smooth arrival and departure of vessels at ports such as New York, New Jersey and San Francisco. ISS was bought by Istithmar, for $285 million in January 2006.