Istithmar World, the investment arm of Dubai World said it was disappointed to lose its W Hotel in Manhattan in a foreclosure auction. The company said the loss is not connected to restructuring of Dubai World’s debt. A spokesman for Istithmar World said “We are disappointed that the lender has chosen this route as we felt that real progress was being made in negotiations with the various lenders to restructure the debt of W Union Square for the future.”
Istithmar World bought the property for $282 million in 2006, and lost it for $2 million. The private equity fund LEM Mezzanine won the bid. Dubai World on November 30 said Istithmar would be one of several units excluded from its $26 billion debt restructuring program.
