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28 March 2024

Emaar raising Dh2.5bn from banks: Alabbar

Published
By Reuters

Dubai's Emaar Properties is in the process of raising around $700 million (Dh2.5 billion) from banks, its chairman told local television on Monday.

Mohamed Alabbar said the real estate firm was currently undertaking a "big financing operation" which was receiving a favourable response from lenders.

"The opportunities for financing and refinancing are excellent and likewise the prices are excellent," Alabbar said in an interview with Dubai TV, due to be broadcast on Tuesday.

"We are at present undertaking a big financing operation... We're talking in the region of $700 million."

Sources told Reuters last month that Emaar was in the process of raising around $800 million through a two-tranche loan which was backed by four malls, including Dubai Mall, one of the world's largest shopping centres.

Emaar needs to raise around Dh6.7 billion ($1.8 billion) between the second half of 2011 and next year, a research report from Rasmala investment bank said at the beginning of October.

Earlier, in a separate television interview, Alabbar said Emaar would not be booking any provisions in its third-quarter results.

Offers to buy some of its hotel had also been rejected, Alabbar told Al Arabiya television.

He said Emaar will not be booking any new provisions in the third-quarter and has rejected offers to buy some of its hotels.

"Emaar doesn't have any new provisions," Mohamed Alabbar said, when asked if the company would book any provisions in the third quarter.

Dubai's largest property developer by market value is expected to report its third quarter earnings later this month.

Emaar's second-quarter net profit plunged 69 per cent after it wrote off its investments in Dubai Bank.

The builder of the world’s tallest tower, the Burj Khalifa, also denied reports that it is looking to offload its Al Manzil and Qamaradeen hotels.

"We refused offers...we don't have any desire to sell our hotels," said Alabbar.

Among Emaar's high profile assets is Dubai Mall, the world's largest shopping centre. It also has a joint venture with Italian fashion house Georgio Armani to develop luxury hotels.