Dubai may double Cape Town stake

Dubai: Dubai could double its investment in Cape Town's V&A Waterfront and is looking at new opportunities in tourist areas in several African countries, officials said yesterday.

Holding company Dubai World's investment arm Istithmar partnered with British-based London & Regional Properties and a group of South African investors to buy V&A Waterfront for $1 billion in September.

The consortium announced last month it will invest $1 billion to further develop the site by building new hotels, marinas and shopping areas to benefit from increased tourism in 2010, when South Africa hosts FIFA's football World Cup.

Strong commitment

Dubai World chairman Sultan Ahmad Bin Sulayem said much of the work at the site will be completed before the World Cup "to ensure we are ready to capitalise on this opportunity."

"We have long-term plans and have a strong commitment to South Africa," he said at a press conference attended by visiting Western Cape premier Ebrahim Rasool.

Rasool welcomed Dubai's investment in South Africa, saying it would encourage Arab investment and tourist flow to South Africa.

"South Africa has been a European and American dominated tourism market. Dubai World will open it up to Arab tourists," he said.

James Wilson, chief executive of Nakheel Hotels & Resorts, who is spearheading the Waterfront project said he will discuss the site's re-development plans with potential investors at the Arab-African Business Conference in Cape Town next week.

"The project is a real chance for us to take an active role in promoting the numerous opportunities available to investors in Africa and the Middle East," he said.

Alan Rogers, chief executive officer of Istithmar's real estate division, told Gulf News the process of developing V&A Waterfront site will continue beyond 2010.

"The initial investment is $1 billion. If we follow through the master plan in conjunction with the government and the city of Cape Town, then we will soon reach the second," he said.

Undeveloped

Rogers said 45 per cent of the site's 603,000 square metres of land remains undeveloped. A number of new hotels will be added to the Waterfront and Dubai-based hotel management chain Jumeirah, part of Dubai Holding, is in discussions to have a property there.

Kerzner International, in which Istithmar has a stake, is building a One&Only resort at V&A Waterfront. Istithmar and Nakheel are planning to invest in tourism assets in at least five African countries.

Istithmar and Kerzner have partnered with Moroccan investors to develop a hotel and residential project in Casablanca, Rogers said.