By Mike Caggeso
Associate Editor
Dubai has chalked up a string of foreign investments in the past year - mostly through its state-owned investment vehicles, or sovereign wealth funds.
The government's most recent investments include: a $448 million stake in a Malaysian super city; $1.26 billion in hedge fund Och-Ziff Capital Management Group LLC's (OZM) Oct. 2007 initial public offering; $5.1 billion for a 9.5% stake in MGM Mirage (MGM); $942.3 million for Barneys New York Inc. fashion stores.
And that's just to name a few.
"Dubai is getting in on the ground floor of some very powerful trends," Money Morning's Investment Director Fitz-Gerald said in a recent interview.
Now, Dubai's ruler himself, Sheikh Mohammed bin Rashid al- Maktoum, will ‘pony' up $400 million of his own fortune in another eye-catching investment:
More than 1,000 prize-winning Australian thoroughbred horses.
Specifically, Sheikh Mohammed bought Australia's largest thoroughbred horse-breeding business - which also includes racetrack training facilities and stud farms around the country - from Ingham Enterprises.
Like his government's many recent investments, Sheikh Mohammed's buy is calculated. He already owns Godolphin stables and stud farms, an operation that spans five countries, Bloomberg reported, and this purchase makes him the world's biggest thoroughbred horse owner.
"I have long admired the love Australians have for the horse and for racing," Sheikh Mohammed said in the statement. "The Ingham family have made a significant contribution to Australian racing and to the thoroughbred and I am looking forward to building on their success."
Ingham Enterprises was started by Austrailian thoroughbred tycoon Bob Ingham and his late brother Jack. Despite its success in the horsebreeding field, the company is known more for its poultry business. It employs about 7000 people, the Sydney Morning Herald reported.
Ingham said he will continue racing horses and has retained the rights to the family's signature racing colors.
The acquisition is subject to approval from Australia's Foreign Investment Review Board.
News and Related Story Links:
- Money Morning:
Dubai World Opens Wallet to Help Build Malaysian Super City - Money Morning:
Outlook 2008: Three Ways to Profit From Sovereign Wealth Funds - the "Next Wall Street" - Bloomberg:
Dubai's Sheikh to Buy Australia's Ingham Horse Racing Business - Sydney Morning Herald:
Meet racing's new king