Emaar Properties, Dubai's biggest real estate firm, plans to sell non-core assets including the bulk of its hotel portfolio and several schools and healthcare facilities to raise $1.4 billion, according to a news report.
The company has hired Standard Chartered bank for the sale process and is close to a deal with several parties, the UK’s Financial Times reported on Monday, citing unidentified people briefed on the process.
Emaar wants to raise $700 million by selling its entire hotel portfolio except two properties, and another $700m for clinics and schools across its mixed-use communities, according to the FT.
A spokeswoman for Emaar declined to comment on any planned asset sale. Emaar "regularly considers various financing options as part of our strategy to streamline our business and generate significant value for the company," she said in a statement to The National.
“We will announce details regarding such opportunities as and when they are finalised.”
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Read more:
[ Emaar to offer incentives to buyers at Dubai Property Festival ]
[ Aldar and Emaar Properties enter into Dh30 billion strategic partnership ]
[ Emaar Properties' full-year profit up ]
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The UAE real estate market has been subdued in recent years, with sales and rental prices declining in most segments amid sluggish economic conditions and muted demand in the wake of a three-year period of low oil prices.
Emaar entered into a Dh30bn strategic partnership with Abu Dhabi's biggest property developer Aldar in March, and the pair intend to create efficiencies through jointly building projects including Saadiyat Grove in Abu Dhabi, and Emaar Beachfront in Dubai.
