Istithmar cashes out of New York property

27 December 2007
Dubai-government investment company Istithmar has sold $2.5bn of property in New York in the past two months.

Istithmar World Real Estate announced on 26 December that it had sold 230 Park Avenue for $1.15bn. The property was bought in November 2005 for $705m. The sale follows that of 280 Park Avenue in November for $1.35bn. Both investments were originally intended to be a long term acquisitions.

“Our real estate investment activities in the US have been an important component of our overall strategy,” Sultan Ahmed bin Sulayem, chairman of Istithmar’s parent company Dubai World, said in a statement. “We have been very successful in executing well-timed acquisitions and dispositions, and remain committed to further investment activity throughout the US.”

Istithmar, which recently merged with Dubai-based developer Nakheel, still owns several high profile properties in New York including 450 Lexington Avenue, The W Hotel Union Square and the Knickerboker building on Times Square.

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