EMAAR

Emaar Properties plans to raise stake in development unit

Emaar Properties plans to raise its stake by up to 3 percent in its development business, whose shares have lost a quarter of their value since the firm listed in 2017.
The additional 3 percent stake would be valued at about AED530 million ($144 million) based on Emaar Development’s closing share price on Friday.
The shares ended the 2.9 percent lower before Emaar Properties clarified about the percentage of stake it’s seeking to raise in the unit. Emaar Properties already holds 79 percent in the unit.
Emaar Properties’ shares have gained about 10 percent this year on the back of a rebound in Dubai’s property prices, which have bounced back strongly over the past year.
The company raised AED4.82 billion from the sale of a 20 percent stake in its development business in 2017. The stock has since dropped about 25 percent.
Emaar Properties, the Dubai-based developer of the world’s tallest tower, took its malls business private last year – at a discount to its listing price.
Earlier, Emaar said the sale of residential properties surged as it gained from a strong rebound in the real-estate market.
Revenue from the residential segment climbed 51 percent to AED17.5 billion ($4.8 billion), according to Emaar’s full financial results. Income from sale of commercial units and land, and hospitality business also increased.
Property prices in Dubai have bounced back after the coronavirus pandemic exacerbated a downturn in the Middle East business and tourism hub.
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