(DUBAI, United Arab Emirates) A property arm of struggling state conglomerate Dubai World is backing out of a plan to build luxury homes in Malaysia as it looks to shore up its finances.

The cash-strapped company’s Limitless division is selling off its stake in a partnership with Malaysia’s Bandar Raya Developments to develop waterfront land in the southern city of Nusajaya.

Limitless will generate about US$23.8 million in the deal, according to a regulatory filing on Malaysia’s stock exchange. It said in a statement yesterday that it continues ‘to review our business activity to reflect market conditions’. The company’s parent Dubai World needs cash as it works to pay back US$23.5 billion in debt. — AP

Source: Business Times, 12 Jul 2010