Emaar Properties plans to “reorganize” its India unit Emaar MGF Land Limited via a demerger from the 11-year-old joint venture.
The joint venture was set up in February 2005 with an investment of $1.5bn to develop residential, commercial and hotel projects in India.
“In order to lend greater focus on its Indian operations and for the purpose of developing the potential for further growth and expansion of the business, Emaar Properties agreed to take steps for the reorganisation of Emaar MGF Land Limited by way of scheme of arrangement (demerger),” Emaar said in a stock exchange statement on Wednesday.
“This reorganisation will enable Emaar to implement focused strategy for its real estate business in India… It will also enable Emaar to drive the development of ongoing projects in India,” the statement added.
Last year Emaar dismissed reports it was considering ending the partnership.