Dubai developer makes loss on sale of shares in Mirvac undertaken to help repay debt
Dubai client Nakheel's sale of its shares in Australian developer Mirvac Group has brought in less than the original amount it paid for them. State-linked Nakheel sold its 12.5% stake in Mirvac for $167.5m (£103.4m), which is about 80% less than it bought them for in 2007.
Analysts have said Nakheel is likely to make further disposals of shares to raise funds before its $3.5bn (£2.2bn) Islamic bond matures in December 2009. Nakheel is among the developers in the UAE hit by plummeting property prices. Dubai's total debt may stand at $84.7bn (£52.3bn), EFG-Hermes estimated this week.
Deutsche Securities Australia bought Nakheel's 172 million shares in Mirvac, it said in a filing to the Australian stock exchange on Wednesday.
On Tuesday, Mirvac reported a net loss after tax of A$1bn (£513m) for 2008/9, but said it expected to make a profit of about A$250m (£128m) in the current financial year as the Australia's residential property market is picking up.
Nakheel's developments include Dubai's three Palm Islands - two of which are on hold.