Following the previous split cash transaction, Dubai Holding will become Emaar’s second-largest shareholder after Dubai Investment Corporation, which owns 24.07%.
Emaar Properties agrees with Dubai Holdings to acquire 100% of Dubai Creek Harbour, a new development along Dubai Creek’s historic waterfront, for AED 7.5 billion (US$2.04 billion) was announced.
Dubai Holding will thus become the second largest shareholder of Emaar.
The statement did not reveal any further financial details, including the number of shares Emaar is offering. Emaar’s biggest shareholder at the moment is the Investment Corporation of Dubai, which owns 24.07 percent or about 1.97 million shares, according to Dubai creek harbour has stunning views of Burj Khalifa and the Downtown area over the creek. It has 7.3 million sqm of residential space, 711,399 sqm of serviced apartments and 700,000 sqm of parks and open spaces. It’s located just five minutes from the Ras Al Khor wildlife sanctuary and a 10-minute drive from Dubai International Airport.
An Emaar spokesperson said: “The purchase agreement with Dubai Holding represents another important achievement in Emaar’s rich history as we continue to expand our strategic land bank and build sustained value for our shareholders.
“We are determined to support the Government’s vision for sustainable urban development in Dubai while providing a redefined experience for residents and visitors.”
A spokesperson of Dubai Holding added: “This is a landmark transaction that benefits both parties. As joint venture partners, we have created meaningful value in Dubai Creek Harbour, and the transaction represents a significant monetization for us.
“We look forward to our investment in Emaar as a reference shareholder and the diversification benefits it offers, and we are confident that Dubai Creek Harbour will continue to reach greater heights and success
Market sources suggest Rothschild & Co is acting as sole adviser to Dubai Holding on the transaction.
Emaar Properties, which has a market capitalization of Dh43.5 billion, recorded a revenue increase of 12 percent to Dh6.6 billion as the property market boomed in Dubai. Group-wide sales increased 17 percent to Dh8.3 billion. The company reported a 34 percent increase in first-quarter earnings to Dh1.05 billion.
Emaar recorded sales of AED 3.6 billion sales in Dubai Creek Harbour in the first half of 2022.
The company’s shares were closed at AED5.70 on Thursday. An announcement was made after the market closed.
