28 August 2009
Dubai property developer Nakheel has sold its shares in Australia property development firm Mirvac at a loss in order help repay debt.
Nakheel has sold its 12.5% stake in Mirvac for $167.5m (£103.4m), which is around 80% less than it had initially paid in 2007.
Market analysts believe that this is the first in a host of future disposals of shares, because the Nakheel is desperate to raise funds before its $3.5bn (£2.2bn) Islamic bond matures later this year.
Nakheel is among a host of Dubai property developers badly affected by the Dubai real estate slump, which has culminated in drastic residential price falls across the emirate.
Nakheel's is currently working on a number of Dubai property schemes including Dubai's three Palm Islands project, two of which have been suspended.
Nakheel's 172 million shares in Mirvac have been purchased by Deutsche Securities, the company announced to the Australian stock exchange.
Mirvac reported a net loss after tax of in excess of £500m this week, but says that it expects profits to improve, as the Australia property market continues to show strong signs of improvement.
See Also: Dubai (49), Australia (35), Marc Da-Silva (269), Nakheel (2)
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