Dubai Just Can’t Get A Break
Dubai, unable to make payments on its debt is being rattled yet again. This time it is the investment arm of Dubai World.
NEW YORK (AP) – Dubai World’s investment arm, Istithmar, lost ownership of the W Union Square New York hotel in a foreclosure auction Tuesday.One of the hotel’s interim lenders, a private equity firm called LEM Mezzanine, acquired the 270-room hotel for $2 million, according to Dow Jones. The sale was another financial blow to Istithmar, which acquired the hotel in October 2006 for $285 million, according to Real Capital Analytics, a data tracking firm.[...]
[...]At the beginning of December, owners of eight New York hotels worth a total of $985 million were in financial distress, including a Courtyard Marriott and The Time Hotel, according to Real Capital Analytics.
The W was not the only Dubai World hotel in trouble. The Fontainebleau in Miami Beach is also in financial straits. The property’s $660 million loan was due in August. Contractors also claim the owner of the historic hotel owes them $60 million.[...] (H/T butch)
A price reduction of 99.3%. And some say commercial real estate is just fine. 
Dubai World – Now Broke
As mentioned in the special market update video Dubai World is unable to make debt payments. They have asked creditors for an extension to May of 2010. But some creditors are viewing the events as a default by Dubai World. Additionally, the risks to Dubai the nation going into default have risen dramatically in the past day.
So what is Dubai World?
Obviously this video needs to be updated to now say at the ending :
Like nothing else, found nowhere else, the world… epic! And Broke
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