Dubai-based developer, Emaar Properties board, has approved the initial public offering (IPO) of its real estate development subsidiary, Emaar Development, to happen as soon as next month, the company said on the Dubai Financial Market (DFM).
Emaar Properties expects to sell 20% of the company in the offering, consistent with its stated strategy of bringing subsidiary companies to market once they have reached sufficient maturity. Emaar Development is the leading developer of residential and commercial build-to-sell (BTS) assets in the UAE. The company is behind iconic freehold master-planned communities in Dubai including Emirates Living, Downtown Dubai, Dubai Marina, and Arabian Ranches, and has delivered over 34,500 residential units since 2002.
According to international real estate professional services firm, JLL, as of September 30, 2017, approximately 22% of all freehold units in Dubai are located in the companys integrated lifestyle masterplan communities.
Mohamed Alabbar, chairman, Emaar Properties, said: Emaar Development is the leading master developer of residential communities in the UAE, best known for Downtown Dubai, Dubai Marina, The Dubai Mall, and Burj Khalifa. The IPO of our UAE development business will allow potential investors an opportunity to participate in a pure play UAE developer offering strong and stable cash flows and an attractive dividend yield. Additionally, it offers the opportunity for Emaar Properties shareholders including the UAE Government to unlock the true value of our UAE development business.
Chris ODonnell, CEO, Emaar Development, said: Emaar Development has a clear strategy to continue delivering high-quality integrated lifestyle communities, which offer an exceptional customer experience. Our strong sales backlog and access to significant premium land banks in prime locations together with a growing real estate market in an enhanced regulatory and stabilised pricing environment positions the business well for the benefit of future shareholders.