Emaar to IPO real estate business in Dubai
Emaar Properties has announced plans to list its UAE Real Estate development business, through an up to 30% equity offering on the Dubai Financial Market (DFM),
Emaar Properties has announced plans to list its UAE Real Estate development business through an up to 30% equity offering on the Dubai Financial Market (DFM), the company said in a statement on Wednesday.
The funds raised through the sale of equity will be primarily distributed as dividends to Emaar’s shareholders. The IPO will be the largest since the Emaar Malls IPO in 2014.
The decision to list Emaar’s UAE Real Estate Development business was said to be a result of an internal review of Emaar’s asset values.
Emaar’s real estate development in UAE has recorded significant growth over last five years. Real estate sales increased from $1.14bn in 2012 to $ 3.92bn in 2016, with the company recording sales of $2.64bn by the end of May 2017, 24% above the same period in 2016. UAE projects backlog amounts to $10.9bn.
Mohamed Alabbar, Chairman of Emaar Properties, said: “Over the years, we have generated significant returns from our UAE real estate development business and it continues to be a strong driver of growth for the group.
“As Emaar’s other businesses have grown and expanded, we wanted to ensure that investors who value the UAE Real Estate Development business the most, the foundation of Emaar’s success, can do so directly. This will ensure that the value of this business is properly recognised, thereby enhancing value for all Emaar shareholders.”
Emaar is currently developing a number of mega-projects including what will be the world’s tallest building upon completion, The Tower, in Dubai Creek. The Tower is scheduled for a 2020 completion date.
Emaar South, a next-generation lifestyle destination in the new aviation and logistics hub of the city, Dubai South, is also being developed as smart community near the Expo 2020 site.