Dubai’s Emaar Properties to Raise Stake in Development Unit
Dubai’s Emaar Properties to Raise Stake in Development Unit
(Bloomberg) -- Emaar Properties PJSC plans to raise its stake by up to 3% in its development business, whose shares have lost a quarter of their value since the firm listed in 2017.
The additional 3% stake would be valued at about 530 million dirhams ($144 million) based on Emaar Development’s closing share price on Friday. The shares ended the 2.9% lower before Emaar Properties clarified about the percentage of stake it’s seeking to raise in the unit. Emaar Properties already holds 79% in the unit.
Emaar Properties’ shares have gained about 10% this year on the back of a rebound in Dubai’s property prices, which have bounced back strongly over the past year. Dubai’s luxury home market should keep growing after a “spectacular turnaround” in 2021, property consultant Knight Frank said in March.
The company raised 4.82 billion dirhams ($1.31 billion) from the sale of a 20% stake in its development business in 2017. The stock has since dropped about 25%.
Emaar Properties, the Dubai-based developer of the world’s tallest tower, took its malls business private last year -- at a discount to its listing price.
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