Nakheel to develop Fontainebleau Miami Beach resort

Nakheel, one of the world's largest and most innovative real estate developers, today announced akheel, one of the world's largest and most innovative real estate developers, today announced that it has invested $375m with Fontainebleau Resorts, LLC, a privately-held Las Vegas based resort developer, in exchange for a 50% interest in the Company's iconic Fontainebleau Miami Beach resort.
Nakheel Hotels, a business unit of Nakheel, will re-create the legendary Fontainebleau Miami Beach in partnership with Fontainebleau Resorts, with a spectacular $500m renovation. The project is expected to open in the last quarter of 2008.

On 7 hectares of oceanfront, the Fontainebleau historically has been regarded as the crown jewel of Miami Beach resorts. The 'new' resort will include more than 1,500 luxury guest rooms and suites, a 40,000 square foot European-style spa, multiple marquee restaurants, a signature nightclub and ultra-lounge, lush poolscape and approximately 200,000 square feet of meeting, convention and ballroom facilities.

Joe Sita, Nakheel Hotels CEO, said: 'This transaction provides Nakheel with a premier entrance into the Miami resort market, via the world renowned Fontainebleau. Jeff Soffer and Fontainbleau Resorts have a tremendous record of developing some of the most exciting tourist and residential projects in the U.S., and the Fontainebleau fits perfectly into Nakheel's strategy of investing in the best assets in the most important markets worldwide. We are always seeking to diversify our portfolio and add to our existing investments in North America, Asia and Europe. Miami, as one of the Unites States' major gateways, has been a key target, which we are pleased to have now gained.'

Jeffrey Soffer, Fontainebleau Resorts' Executive Chairman and majority equityholder, said: "We are extremely pleased to have a world-class organization such as Nakheel, as our partner in our flagship property. Nakheel is one of the most innovative property developers redefining how tourism and resorts can be developed. This strategic alliance with Nakheel Hotels is the beginning of a larger relationship that will lead to many exciting growth opportunities around the world and advance our goal of creating a new standard within the hospitality industry.'

Nakheel Hotels was launched in November 2007 as the new name for Istithmar Hotels after Dubai World consolidated its hotel business under one banner to create a fully integrated hotel investment company. The hotels business was originally formed in April 2006 as the hotel investment and asset management business of Istithmar and has, in less than 2 years, accumulated a global hotel property portfolio. The enterprise value of investments to date is in excess of $3bn. (AME Info)