Kerzner one step closer to becoming a management companyDecember 2nd, 2011 by Susan Reynard | Categories: hotels, industry, tourism
It has been reported that Kerzner International Holdings has given up its Atlantis resort on Paradise Island and One&Only Ocean Club, both in the Bahamas, as well as half of its interest in One&Only Palmilla in Mexico, to Brookfield Asset Management as part of a debt restructuring process. The exercise is worth US$175-million.
The company has reportedly battled with its debt burden since 2008. Operating debt is also being restructured. However, the company will continue to run the two properties.
Dubai World owns Atlantis the Palm in Dubai, which remains unaffected.
Kerzner debt to Brookfield is reported to have been US$2.6-billion, later reduced to US$2.3-billion.
Chairman and CEO Sol Kerzner said in a statement: “This transaction will permit Kerzner to move forward as a management company.” Kerzner will continue to design and manage destination luxury resorts under the Atlantis and One&Only brands.
The remainder of the company’s properties are unaffected by the deal.