Kerzner International, which operates the luxury One&Only resorts, has concluded a restructuring plan designed to improve its financial position.
The hospitality company has exchanged approximately US$175 million of debt for its equity interest in Bahamian company Brookfield Asset Management. Kerzner has also completed its previously announced agreement to sell a 50% stake in Dubai luxury resort, Atlantis The Palm, to Istithmar World PJSC for US$250 million. The proceeds of this transaction have also been used to reduce Kerzner’s debt. Following the closing of this transaction, Kerzner will continue to manage Atlantis on a multi-year management contract.
“We are pleased to have reached a successful conclusion to our comprehensive restructuring, which significantly strengthens the company’s financial profile,” said Sol Kerzner, Chairman of Kerzner International. “With substantially less debt and a more flexible operating structure, Kerzner is well positioned for sustainable long-term growth as a global management company.”
“Today’s announcement significantly accelerates our strategy of shifting from an owner and operator to a management company and allows us to focus on managing all of our resorts and properties,” said Alan Leibman, Kerzner’s CEO. “Kerzner will remain in control of all aspects of running its properties and it will continue to operate seamlessly as it always has.”
Kerzner recently announced plans to develop and operate a new One&Only resort in the Chinese resort city of Sanya, which is expected to open in early 2014.