Dubai's largest listed real estate firm Emaar Properties expects "technical talks" for its planned merger with state owned developers to be concluded within a month, its chairman said in remarks aired on Saturday. The new firm will announce new projects after the merger, Mohamed Alabbar told Al Arabiya television, without giving details about the size of the envisaged projects or an exact date for the finalisation of the merger.
Investors and shareholders have been eagerly waiting for news on the merger, which could dilute their holdings, but would be one of the biggest in the Middle East. Dubai Holding, owned by the ruler of the Gulf emirate, and Emaar said in June they were in advanced talks to merge four local real-estate companies.
They said at the time the move would consolidate Emaar, which is building the world's tallest tower in Dubai, with three developers owned by Dubai's ruler; Dubai Properties, Sama Dubai, and leisure developer Tatweer. "Having an entity of this size and such assets in terms of land banks ... would have positive impact on the profitability of the firm for many years to come and on its share," Alabbar said.
Emaar said on June 27 it expected the merger to be completed within about four months. Alabbar said the delay was due to the large size of the firms and their projects. All four firms, three of which are not listed, are prominent players in a sector badly hit by the global financial crisis after a six-year boom. Alabbar ruled out de-listing the firm after the merger. "We are in the market ... and will stay."
Emaar, which is 31.2 percent owned by Dubai's government, expects a revenue boost from it $20 billion Burj Dubai development which includes the world's tallest tower in the first quarter and 2010, said Alabbar without giving figures. Property prices in the emirate - with its iconic palm fronds-shaped islands - have slumped since last year. The slowdown has led to project cancellations worth hundreds of billions of dollars.
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