Emaar Properties Aims for Full Control of Emaar Development with Dh15 Per Share Offer

Emaar Properties, a prominent Dubai-based property developer, has announced a voluntary cash offer to acquire the remaining shares in its publicly traded subsidiary, Emaar Development. The company is proposing an offer of Dh15 per share to gain complete ownership of the subsidiary it does not currently hold. This significant move, aimed at consolidating control, is contingent upon the approval of Emaar Properties’ board. The offer specifically targets shares not already owned by Emaar Properties or its indirect wholly owned subsidiary, Emirates Property Holdings, as detailed in a filing to the Dubai Financial Market (DFM).

With Emaar Development's current market valuation exceeding Dh60 billion, this potential transaction could represent a substantial investment for Emaar Properties, potentially costing up to Dh12.6 billion to acquire the outstanding shares, according to Bloomberg estimates. Emaar Properties, renowned for developing iconic structures like the Burj Khalifa, presently holds a stake of just over 79 per cent in Emaar Development.

This initiative follows previous indications of Emaar's intention to increase its stake in Emaar Development. In March 2022, the board had already approved a proposal to potentially raise its ownership by up to three percentage points. A notable transaction in the past occurred in November 2017, when Emaar Properties raised Dh4.82 billion from the sale of a 20 per cent stake in its development arm, which was at the time the largest listing in Dubai in three years.

Emaar Development, also listed on the DFM, functions as the property development division of Emaar, focusing on residential communities and build-to-sell projects within Dubai. Its portfolio features well-known developments such as Dubai Hills Estate, Arabian Ranches, Emaar South, and The Valley.

The current offer emerges as Dubai continues to navigate economic challenges, including the ongoing impact of geopolitical events. The ownership structure of Emaar Properties itself saw a shift in May, with Dubai Holding becoming its largest shareholder after acquiring a 22.27 per cent stake from the Investment Corporation of Dubai (ICD).

As one of the leading real estate developers in the Middle East, Emaar Properties boasts a diverse portfolio encompassing residential, commercial, hospitality, and retail assets across the Middle East and North Africa, Asia, and Europe. The company has approximately 90,000 units under development globally across 18 markets and is demonstrating resilience against geopolitical uncertainties and economic headwinds, underpinned by the fundamental strength of its business operations.

In September, Emaar founder Mohamed Alabbar expressed optimism about the Dubai property market, anticipating a “nice balance” in the coming year despite a softening trend attributed to geopolitical tensions, suggesting the sector is undergoing an adjustment period. Earlier, in June, Emaar had announced plans for a significant Dh200 billion megaproject in Dubai, designed to accommodate an estimated 150,000 residents.