Abu Dhabi's government-owned Tourism Development Investment Company (TDIC), builder of branches of the Louvre and Guggenheim museums, is mulling asset sales to help repay $2 billion in debt maturing in 2014, its chief financial officer said.
Shaun O'Connor said the developer had been in talks with Gulf region investors on the sales and was considering whether "to pay off or to extend" the bonds.
"We have assets on the market today to sell into private hands and spur investment in Abu Dhabi," he said in an interview at TDIC's headquarters on the outskirts of Abu Dhabi.
"Around six buildings, we're talking about taking to the market on a sales strategy because there's an appetite for the product. I'd like to see someone come in with a large hotel fund and buy some hotels."
The assets include hotels and apartments on Abu Dhabi's Saadiyat island and the Eastern Mangroves area. A few deals could be finalised before the end of the first half of this year, he said, adding that Gulf investors are coming to diversify their portfolio.
"The proceeds ... half for bonds and debt payment and half to invest in my business. We are trying to manage the liability side of the company aggressively but appropriately to make sure that we are also investing for the future of TDIC," he said.
TDIC, which has struggled amid a regional property slump, has a $1 billion Islamic bond and $1 billion conventional bond falling due in 2014. At the end of 2011, it had 13 billion dirhams ($3.54 billion) in debt outstanding and 2 billion dirhams in cash.
The firm's total assets stood at around 14.5 billion dirhams at the end of 2011 and include at least 10 operational hotels and resorts including The St. Regis Saadiyat Island resort. It also owns several retail and residential apartments.
O'Connor said the developer needs between 1-2 billion dirhams in capital expenditure over the next five years, much of which will come from bank debt, capital markets and equity.