Dubai World's Istithmar 'significantly' scales down Cape Town office

Dubai World investment arm Istithmar World's chief executive, David Jackson, resigned on Wednesday following an announcement earlier this month that the group would be closing down its Cape Town office.

The company denied that the closure was part of a restructuring process.

Less than two years after expanding its workforce in Cape Town, some 20 staff members will lose their jobs as part of the group's attempts to "significantly" scale down in the city, starting this month.

A spokesperson from Istithmar World told Business Report that the closure of the offices was not part of the group's restructuring process.

"This is a business decision. Dubai World Africa has always been centralised in Dubai, which is just easier from a decision-making point of view," he said. "With the successful completion in the first quarter of 2010 of the majority of Dubai World's planned developments in Africa, the group is scaling down its Cape Town offices," he said.

Meanwhile Jackson, who had been with the company for six years, resigned as the troubled conglomerate struggles to manage some of the investments made under his leadership. Dubai World, which is in the process of trying to restructure about $22 billion (R166bn) of debt, said Jackson had left the company to "pursue other opportunities".

Aidan Birkett, the chief restructuring officer for Dubai World, said in a statement: "We thank David for his work with the company. Today Istithmar World is focused on the steady-state management of existing assets to maximise value rather than on private equity investment."

Istithmar World's chief investment officer, Andy Watson, will take over as acting chief executive. Dubai World's media office would not respond to questions about managing director of Dubai World Africa, Mahmoud Saleh who had allegedly been recalled to Dubai.

Dubai World media spokesman John Hobday said yesterday that the Dubai World restructuring was at an early stage and that it was too early to predict further business closures.

The group said it saw long-term value and potential in its African assets and that it would focus on managing the current portfolio to preserve value.

Dubai World's investments in South Africa include Lexshell, the consortium that bought the V&A Waterfront from Transnet for R7bn in 2006.

It also owns an 80 percent stake in Shamwari Game Reserve and has investments in Sanbona Wildlife Reserve and Jock Safari Lodge as well as the Pearl Valley Golf Estate.

Business Report

Posted at 10:31AM Jan 22, 2010 by Editor in Market  |