Istithmar eyes sale of some NY holdings

By Sebastian Tong

SINGAPORE (Reuters) - The property arm of Dubai state investor Istithmar is not looking at buy more assets in London and wants to reduce its holdings in New York in favor of more assets in other major U.S. cities, its head said on Wednesday.

Instead, the private equity property investor sees the greatest growth potential in Asia, where about 5 percent of its $8 billion global portfolio is situated.

"We have big plans for Asia. We are very keen on Vietnam. We're selectively looking at Malaysia and possibly, in Bali," Richard Johnson, managing director of Istithmar Real Estate said at the Reuters Real Estate Summit in Singapore.

Johnson said the firm was also looking to buy office property in China, Japan, South Korea and Singapore and would be keen to raise the Asian share of its portfolio to up to 20 percent eventually.

The firm, which earlier Wednesday announced it would take a 80 percent stake in a $130 million Bangkok hotel to be developed by Thai property firm Golden Land PCL GOLD.BK, is also in talks to buy a further one to two hotels in Thailand.

Istithmar already owns a 25-percent stake in Thai developer Raimon Land RAIM.BK and a 9.6-percent stake in hotels-based CDL Hospitality Trusts (CDLT.SI: Quote, Profile, Research, Stock Buzz), controlled by Singapore developer City Developments (CTDM.SI: Quote, Profile, Research, Stock Buzz).

On Tuesday, Istithmar said it would form a $50 million property fund with a unit of Singapore's City Developments to develop about 30 budget hotels in Southeast Asia.

Johnson said the firm was not "actively seeking" to put more money in London, where its assets had yielded good returns for the last few year.  Continued...