In a shocking move, Abu Dhabi’s biggest commercial and real estate developer, Aldar Properties, is set to sell Ferrari World, the luxurious car-themed amusement park, less than three months after its grand opening. Rumors are circulating that Ferrari World will be sold to the government in efforts to pay down debts.
Ferrari World features more than just the Ferrari moniker and a kick-ass Ferrari roller coaster. Located on Yas Island, Ferrari World features billions in high-end real estate and entertainment. Unfortunately, the amount of Aldar’s debt has become an insurmountable concern for creditors and equity holders on the heels of a drop in property values in the UAE. Once a flourishing market, UAE seems to have hit a speed bump. Right now the luxury car and exotic rental car market is white-hot in India and China, and it will be interesting to see where that road leads.
The solution for Ferrari World seems to be for Aldar to sell it along with the related roads, bridges and marine infrastructure for around AED 10.9 billion, along with AED 5.5 billion in residential real estate. A report released by Bank of America Merrill Lynch stated that the company would need approximately AED 10 billion just to “survive” the year. Ouch.
Imagine Lifestyles has continued to follow Ferrari world’s progress. If you would like to read some backstories check out: The Ferrari Rollercoaster on a Multi-Billion Dollar Island, Exotic Destinations: Meet Ferrari World Abu Dhabi, and A Ferrari Roller Coaster? The Prancing Horses Leave the Ground.
Post by Imagine Lifestyles Luxury Rentals