UAE. Nakheel, the Dubai-based property developer, sold its remaining 172 million shares in Mirvac Group, the Australian property developer, for A$206.4 million (US$171 million), reported 'The Australian'.A block trade of Nakheel's remaining 172 million shares, was carried out by Deutsche Bank, which placed the stock with a range of institutional investors at A$1.20.
The trade was done at a marginal discount to the A$1.25 to A$1.27 range in which it was trading before the placement was carried out, said the report.
Nakheel bought a 6.5% stake in December 2007 and built up its stake in Mirvac to about 12.5% but had been selling down its stake over the last year.
Mirvac chief executive Nicholas Collishaw last night told The Weekend Australian the property group would not, with the exit of its largest investor, lose its firepower in pitching for developments.
"It means for us, from our point of view, business as usual," Mr Collishaw said.
"It has come as a surprise. If there is a range of institutions that have taken over the big line of stock that has gone through, then I think we will end up with a more stable investor base."
State-owned Nakheel is building palm tree-shaped islands off Dubai’s coast and an archipelago called The World that replicates the map of the world off the coast of Dubai.
The developer reported in May that 2008 profits dropped 90% after it took a US$1.3 billion impairment charge due to falling property prices. Net income for 2008 declined to AED495.5 million (US$135 million) from AED4.73 billion a year earlier while revenue advanced 19% to AED16.4 billion.
Nakheel booked an “impairment and termination” charge of AED4.8 billion to ensure asset values reflect “their future recoverable amount,” it said in May, adding that it also delayed or deferred some of its medium and long-term projects.
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