Dubai property developer Emaar Properties intends to make a voluntary cash offer to acquire up to 100 per cent of the shares in its listed unit Emaar Development that it does not already own.
The biggest listed developer in the emirate is offering Dh15 ($4.08) per share to investors to take full control of its subsidiary. The proposed offer is subject to approval by Emaar Properties’ board, the company said in a filing on Wednesday to the Dubai Financial Market, where its shares are traded.
The offer covers shares not already owned by Emaar Properties and its indirect wholly owned subsidiary, Emirates Property Holdings, according to the bourse filing.
With the construction unit valued at more than Dh60 billion at current share price, the potential transaction could cost Emaar Properties as much as Dh12.6 billion, according to Bloomberg.
Emaar Properties, the developer of the landmark Burj Khalifa in Dubai, currently owns just over 79 per cent of Emaar Development.
Emaar had previously announced plans to increase its ownership of Emaar Development.
In March 2022, its board approved a proposal to raise its stake in the subsidiary by up to three percentage points.
Emaar raised Dh4.82 billion from the sale of a 20 per cent stake in its development business in November 2017, which at the time was the largest Dubai listing in three years.
Emaar Development, which also trades on the DFM, is the property development arm of Emaar, specialising in residential communities and build-to-sell projects in Dubai. Its portfolio includes developments such as Dubai Hills Estate, Arabian Ranches, Emaar South and The Valley.
The latest move comes as Dubai continues to navigate the economic fallout from the Iran war, which is now in its ninth month. The company’s ownership structure also shifted in May, when investment company Dubai Holding became the largest shareholder in Emaar Properties after acquiring a 22.27 per cent stake in the developer from the Investment Corporation of Dubai (ICD).
One of the largest real estate developers in the Middle East, Emaar has a portfolio spanning residential, commercial, hospitality and retail assets across the Middle East and North Africa, Asia and Europe.
Emaar, which has 90,000 units under production globally in 18 markets, is weathering the wave of geopolitical uncertainty and economic headwinds on the fundamental strength of its business.
In September, Emaar founder Mohamed Alabbar said that the property market in Dubai was set for a “nice balance” next year despite softening due to the Iran war, as the sector goes through a period of adjustment.
In June, Emaar said it would unveil an “extraordinary” Dh200 billion megaproject in Dubai, set to house nearly 150,000 people.
