Business as usual at V&A as co-owner enters deep water

November 27, 2009 Edition 2

Aziz Hartley and Sapa

THE provincial government's investment arm, Wesgro, is keeping a close watch on developments at Dubai World Africa, co-owner of the V&A Waterfront, as the company is in financial trouble.

Dubai World Africa, through its investment company, Isithmar, has a 37.5 percent stake in the Waterfront. The popular tourist attraction's other major stakeholder is London and Regional, which has a similar stake to Dubai World, while the remainder is shared among BEE groups.

Earlier this week, Dubai World, the state-owned real estate and ports giant, asked its creditors if it could delay payment on its $59 billion (R443bn) in debt until at least May 30. It had been due to repay $3.5bn next month.

Wesgro chief executive Angelo Manzoni said yesterday rumours of Isithmar being liquidated surfaced about two months ago.

"On the back of that, we engaged Dubai World Africa and spoke to its chief executive, Mohamed Saleh," Manzoni said.

"We were concerned about the significant investment they procured in the V&A Waterfront. We wanted to determine what their intention was, or what the risks were."

Isithmar acknowledged that the global financial crisis had affected Dubai World Africa, but said the Waterfront remained a key asset for the company.

"The V&A Waterfront is in no danger, according to their feedback at the time," Manzoni said.

"With the new information, we will now have to review, but we can comment further only after an analysis. We will be watching this very closely and will be following up."