Dubai's state-run investment firm, Istithmar World, recently paid $250-million to buy out its financially troubled business partner, Kerzner International Holdings Ltd., which had held a 50% stake in the
Atlantis Resort Hotel on Palm Jumeirah. Istithmar already owned half of the property. Kerzner will continue to operate the resort. It agreed to give up its stake in the Dubai property and its resort in the Bahamas after struggling to restructure $2.6-billion in debt. Canada's Brookfield Asset Management acquired the Bahamas resort by agreeing to waive $175-million in debt owed by Kerzner. Istithmar is part of Dubai World, which also owns retailer Barneys New York and has a stake in Cirque du Soleil. The 1 537-room Atlantis Dubai opened in September 2008, shortly after a construction fire damaged part of the lobby. A lavish launch party two months later cost $20-million and featured a large celebrity guest list entertained by Australian pop star Kylie Minogue.
