Emaar Properties, 3 Dubai firms to merge operations
30 Jun 2009
Emaar Properties, the Dubai-based developer is planning to merge its operations with three rival companies owned by the ruling family to cope up with the declining trend in the real estate sector.
The merger is expected to take place in four months.
In a statement posted on Sunday on the Dubai Financial Market web site, the company said its proposed merger with Dubai Holding subsidiaries Dubai Properties LLC, Samar Dubai LLC and Tatweer LLC would create a company with an asset base of 194 billion dirhams ($52.8 billion) and a debt of 13.4 billion dirhams, or roughly 7 per cent of the total assets.
''The proposed consolidation would create a robust and strategic asset base while joining the strengths of the various companies,'' Emaar said.
The deal is aimed to shore up a Dubai property market that has seen values plunge by as much as 40 per cent in the first quarter of 2009 with the onslaught of the global economic slowdown.
Moreover, rising job losses in the city has reduced demand for properties.