DUBAI, 23 December 2007 — Government-owned Nakheel, developer of palm-frond shaped islands off Dubai’s coast, said on Friday it agreed to buy 6.51 percent of Australian real estate company Mirvac Group Ltd as part of plans to expand abroad.
Nakheel did not say how much it paid for the stake, which was worth about A$400 million ($347 million) at the closing price of Mirvac’s shares yesterday.
“We believe there are many potential opportunities for Mirvac and Nakheel to work together,” Nakheel Chief Executive Chris O’Donnell said in a statement.
“As Nakheel looks to move forward its international mandate, it makes perfect sense to look at the possibility of joint developments with a like-minded company,” he said.
Nakheel had not held talks with the Australian company, O’Donnell said.
Mirvac is a developer, fund manager and manager of properties, according to its website, which says its business lines are worth about A$26.3 billion. The fund management division’s assets account for about half that.
Mirvac is developing residential properties in Australia and manages hotels in Australia, New Zealand and on Pacific islands, according to the website. Nakheel, which is working on $60 billion in projects, is one of the agencies the government of Dubai is using transform the Gulf Arab emirate into a business hub and tourist destination.
Apart from three palm-tree shaped islands, Nakheel is building an archipelago that replicates the map of the world off the coast of Dubai.
Mirvac is a leading integrated real estate group, listed on the ASX with more than $26.3 billion of activities under control across the real estate funds management and development spectrum. Established in 1972, Mirvac has more than 30 years of experience in the real estate industry and has an unmatched reputation for delivering quality products across all of its businesses.
Mirvac’s Funds Management division manages approximately $13.3 billion, $4.2 billion through Mirvac Property Trust, and $9.1 billion on behalf of more than 40,000 institutional and retail investors in three key areas: real estate equity — listed and unlisted funds and mandates, real estate debt — debt funds and infrastructure — listed and unlisted funds and mandates.
Mirvac Property Trust, part of the stapled entity Mirvac Group, owns more than 55 investment grade assets including commercial, retail, industrial, hotels and carparks leased to quality tenants.
Mirvac Hotels & Resorts which is part of the funds management division, has approximately 5,500 rooms under management across 42 properties in Australia, New Zealand and the Pacific, making it one of the largest Australian-owned hotel groups.
The group’s development division is responsible for some of Australia’s best residential projects and currently has approximately 30,000 lots under its control that will be progressively developed over the next 8-10 years.
An undisputed leader in its field, Mirvac is committed to the provision of exceptional service, outstanding developments, and sound investment opportunities, all of which carry that highly respected Mirvac “mark of quality”.
Al-Nakheel Properties, which is also known as Nakheel Corporation, is the most popular real estate company dealing in freehold property in Dubai. Its real estate development ranges into residential, tourist, commercial and retail property.
Al-Nakheel Properties’ portfolio of real estate include the Palm Islands (Palm Jumeirah, Palm Jebel Ali, Palm Deira), The World Islands, Dubai Waterfront, The Gardens, Jumeirah Lake Towers, Discovery Gardens, Lost City, Jumeirah Islands, Jumeirah Village, The International City, Jewel of the Palm, The Palm Golden Mile, Palm Trump International Hotel and Tower, and Ibn Battuta Mall.
