São Paulo – Emaar Properties announced this Wednesday (7) that it will sell 30% of its real estate development operations in the United Arab Emirates. It is planning an initial public offering (IPO) at the Dubai Financial Market (DFM), the Dubai stock exchange, according to news made public by local news agencies and press material from the company.
Emaar itself said this will be the biggest IPO in the UAE since that of Emaar Malls, in 2014, which reached AED 5.8 billion, or roughly USD 1.58 billion. Emaar Malls is the company’s mall ownership and management arm. Emaar said its plan is to create value for shareholders, who will get the bulk of revenue via dividend distribution.
Emaar had sold AED 9.7 billion (USD 2.64 billion) worth of property by the end of May this year, up 24% from January to May 2016. The past few years saw the company post significant growth, going from AED 4.2 billion (USD 1.14 billion) in 2012 to AED 14.4 billion (USD 3.9 billion) last year.
Emaar Properties chairman Mohamed Alabbar said the move will ensure that the value of the company’s real estate business is duly recognized, raising value for all shareholders. Emaar delivered some 34,000 properties in Dubai since 2001, and currently owns approximately 24 million square meters’ worth of floor space in the UAE.
The company developed and built the Burj Khalifa in Dubai, the world’s tallest building at 828 meters. It has several megaprojects underway right now, including Dubai Hills Estate, a joint venture with Meraas Holding for an 11 million sqm green city within Dubai.
The company is yet to announce a date for its IPO.
*Translated by Gabriel Pomerancblum