Bet-Nahrain Forum

Has a ziggurate type structure reminiscent of ancient Assyrian

Posted By: Simon Malek (74-182-43-199.etnet.ca)
Date: Friday, 14 July 2006, at 2:21 a.m.

Dubai bags another
New York building for $1.2bn

AFP

June 14, 2006

DUBAI, United Arab Emirates -- A Dubai government fund announced on Tuesday the purchase of a landmark building in the heart of New York city for $1.2 billion as the Gulf Arab state blazed ahead with its Big Apple investment binge.

The 32-storey building on 280 Park Avenue in midtown Manhattan, one of the world's most expensive property locations, was bought by Istithmar from Boston Properties, a publicly listed real estate investment trust.

"We are delighted to work with Istithmar on this transaction and we look forward to a long relationship with them," Boston Properties chairman Mortimer Zuckerman said in a statement issued by Istithmar.

"Park Avenue is the hub of global operations. Two-Eighty Park Avenue is a particularly attractive corporate location," said David Jackson Istithmar chief investment officer.

"Within the real estate sector, Istithmar targets projects that are positioned to experience long-term, substantial capital appreciation."

The 1.2 million square feet building, which has a ziggurat type structure reminiscent of ancient Assyrian and Babylonian temples in Iraq, was built in the early 1960s to house the offices of Bankers Trust Co.

This is the third New York property deal to be announced by Istithmar since November and a source close to the fund, who spoke on condition of anonymity, said that several similar deals have been finalized or were in the process of completion.

The source also said that the fund is under the direct supervision and control of the office of Dubai's ruler Sheikh Mohammed Bin Rashid Al Maktoum, who is also vice-president and prime minister of the oil-rich United Arab Emirates (UAE), a federation of seven emirates including Dubai.

The fund had announced last week that it paid $300 million for a prime Beaux Arts-style building in Manhattan's famed Times Square dating from the 1920s that was once the site of the Knickerbocker Hotel.

In May the fund bought Loehmann's, a 60-store US chain specializing in designer women's and men's apparel at discount prices, for $300 million.

It also said that it bought another building on 230 Park Avenue without disclosing the price.

According to the Emporis Buildings property database, Istithmar paid $705 million for this building and bought a building on 450 Lexington Avenue for $600 million.

The total real estate investments of Istithmar in New York city would be $2.8 billion, according to Emporis.

Istithmar's purchase of US interests comes on the heels of the controversy that surrounded the acquisition of British shipping giant Peninsular and Oriental Steam Navigation Company earlier this year by Dubai Ports World (DP World), another government-controlled company.

A portion of the deal would have given DP World the right to operate six major US ports, including New York.

The deal was strongly opposed by the US Congress on security grounds, forcing Sheikh Mohammed himself to agree in March to cede control of the US operations to a US entity in order to avert a standoff with a major ally.

Sheikh Mohammed is the driving force behind Dubai's building boom.