Emaar watching market conditions for hotels IPO

Emaar Properties, Dubai's largest listed real estate developer, is watching the markets closely to make a decision on a time frame for listing its hotels business, the company said on Thursday.

"The timing of the IPO will be dependent on the market conditions. We are watching the markets closely and will take a decision to list at the appropriate time," an Emaar spokesperson said in an emailed statement to Reuters.

This comes after a Bloomberg report said Emaar had hired Rothschild as advisor for a planned listing of the hotels operations in the second half of this year.

Shares in Emaar were up 2.6 per cent to Dh7.90 in early trade on Thursday as part of an overall market rally.

"Emaar's strategy is to make its business segments independent listed companies. This approach aims to provide the businesses with appropriate financial and operational means to grow faster and become among the most successful companies in their industries," the statement added.

The developer sold a 15.4 percent stake in retailing unit Emaar Malls Group in an initial public offer in September, raising $1.6 billion after a heavy oversubscription. After the listing, it said an offer of Emaar Hospitality would follow "as soon as possible".  

Banks slash interest rate on $500m loan

Emaar Properties  has agreed with banks to slash the interest rate on a $500 million syndicated loan, the developer said, in the latest example of a local company winning a cut in funding costs from cash-flush bank lenders.

Emaar said in a statement to Reuters that as of December 11, the pricing on the loan had fallen by 1.5 per cent, with banks agreeing to the London interbank offered rate plus 1.25 per cent.

Margins on the loan will range to 1.75 per cent based on loan drawdown proportions, it added.

The loan was signed in September 2013 with $450 million to mature in 2018 and $50 million to come due in 2020, according to Thomson Reuters data. Emaar did not reveal how many banks were in the syndicate or identify them by name, but said it mostly consisted of banks from the UAE.

Emaar reported a 21 per cent rise in third-quarter net profit in October.

Emaar Hospitality Group shares to be sold in H2

Dubai-based master developer Emaar Properties plans to float its second subsidiary in the latter half of this year as it expands its hospitality business, a media report has said.

Quoting sources, Bloomberg News reported that developer will sell shares in Emaar Hospitality Group in the second half of this year.

Emaar on Wednesday launched a new mid-size hotel brand – Rove Hotels – in a joint venture with Meraas Holding with plans to roll out 10 properties in Dubai and other countries by 2020. Emaar’s other hotel assets include two Armani hotels in Dubai and Milan.

Earlier this week, Emaar Hospitality Group officially opened the doors of lifestyle boutique hotel Manzil Downtown Dubai.

Emaar Properties offloaded a 15.4 per cent stake in its retail unit – Emaar Malls Group – in the second half of last year, raising Dh5.8 billion and valuing the business at Dh37.7 billion. The pricing for the offering was set at Dh2.90 per ordinary share.

The order book was over 30 times subscribed for the Institutional tranche and over 20 times subscribed for the Individual tranche at the top of the price range. The final allocations were approximately 70 per cent to Institutional investors and 30 per cent to Individual investors.

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