Emaar said in a statement that the money raised from the sale of online apparel shop Namshi will go toward growing the developer’s primary real estate business.
On August 24, the agreement is scheduled to be signed. Subject to the fulfilment of the “Agreement Term and the Required Regulatory Procedures”.
Emaar earlier revealed it was selling Namshi to UAE e-commerce giant Noon for $335 million. The deal is set to be signed on August 24, “subject to the completion of the agreement term and the required regulatory procedures.”
The company is expecting a net profit of AED628.7 million from the transaction. Once signed, it will be closed within six months, Emaar said in a bourse filing.
The sale comes as the Burj Khalifa developer plans to “redeploy capital across the group with a focus on investing in businesses that are of core strategic value.”
“The transaction is in line with Emaar’s strategy to divest assets that are not core to its primary business so as to create and sustain value for its shareholders,” it explained.
The business further highlighted that the deal is a “related party transaction,” citing Mohammed Alabbar’s dual status as managing director of Emaar and indirect legal owner of 50% of Noon as evidence.
