Al Jaber Group’s Shangri-La Dubai has been sold at an online auction for AED 700.2 million (US $190.62 million).
Sister-publication Arabian Business reported the news, explaining the property’s sale did not include furniture or a trade licence agreement for the residential and commercial portions of the tower.
The 42-storey tower received a single bid on Emirates Auction; the site specialises in auctions for asset liquidation, real estate, cars, and other luxury goods across the region.
Reuters elaborated on the sale, explaining it was initiated by First Abu Dhabi Bank and marks the first steps by creditors to recover funds following delays to a structuring agreement for AED 5.9 billion of debt.
Reuters continued the restructuring agreement expects the Al Jaber Group to appoint a new board, sell off operating companies and investment assets such as the Shangri-La properties.
Commenting on the auction, a Shangri-La Group spokesperson said in a statement emailed to Arabian Business: “We wish to assure our guests and business partners that it is business as usual at Shangri-La Hotel, Dubai. A potential change in ownership doesn’t necessarily have an immediate impact on our management agreement. Guests can continue to look forward to the high quality of service excellence that the Shangri-La Group is known for. We have been operating successfully in the region since 2003 and are committed to growing our presence in the UAE and the Middle East.”
Shangri-La Dubai hotel sold for $190m
Published: 22 January 2020 - 8 a.m.
By: Josh Corder