Emaar snares world's tallest tower deal

Kingdom Holding Company, the firm chaired by Saudi Prince Alwaleed bin Talal bin Abdulaziz Al Saud, yesterday said it has struck an alliance with Dubai-based Emaar Properties to build the world's tallest building, Kingdom Tower in Jeddah.

Prince Alwaleed, on behalf of Jeddah Economic Company, has signed a joint venture with Emaar Chairman Mohamed Ali Alabbar to that effect, the companies said in a statement.

Emaar is the developer of the Burj Dubai, currently the tallest man-made structure in the world.

"The alliance between Kingdom Holding and Emaar is strategic," said Prince Alwaleed.

Emaar is in charge of developing and supervising the construction of Jeddah Kingdom City and Kingdom Tower, designed to be the highest in the world.

The Dubai-based developer was selected by Kingdom Holding out of five other international developers, the statement said.

"Emaar was able to bring together an experienced team within a week from the signing to work on the development, master planning, traffic study, environment and updating market research and commencement of ground work. Furthermore, the preliminary licence was obtained and the Emaar team is working closely and in co-ordination with the Jeddah municipality," the statement said.

In October, King Abdullah inaugurated the two projects of Kingdom City and Kingdom Tower in Jeddah.

The tower will be more than a kilometre high.

The project will have a total investment of more than SR100 billion (Dh367bn).

Kingdom Tower is part of the Kingdom City development which will be one of the largest and most comprehensive real estate projects to be built in Saudi Arabia located at Obhur, north of the creek of Jeddah and the mountains to the east.

The master plan encompasses 5.3 square kilometers.

Kingdom City is 20km from the old city of Jeddah near King Abdulaziz International Airport.

The area that comprises of buildings is 23 million square metres including commercial, residential, institutional, educational, entertainment, retail and hotel facilities.

The centerpiece of the development will be the Kingdom Tower, the statement said.

Kingdom City is expected to house 80,000 residents and accommodate 250,000 visitors, the statement added.

The tower will rise from a large retail and conference centre podium to and include five-star hotel accommodations, office space and luxury residences that encompass dramatic, sweeping views of the Red Sea, Obhur Creek and the mountains to the east.


US subsidiary to liquidate assets

John Laing Homes, the US-based company that Emaar Properties bought three years ago in June 2006 ?in a Dh3.856 billion ($1.050 billion) all-cash transaction, will liquidate assets rather than reorganise, according to documents filed in US Bankruptcy Court in Delaware.

California-based WL Homes, which operates under the name of John Laing Homes, had filed for Chapter 11 protection (bankruptcy) earlier in February this year, but that case has now been converted to liquidation as it has since been unable to emerge as a viable entity.

According to papers the company had filed for Chapter 11 protection, it listed assets of about $1.4bn and liabilities of about $937 million.

Emaar took a Dh750 million goodwill write-down related to John Laing Homes in October last year. (Vicky Kapur)

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