Emaar Properties to acquire Dubai Creek Harbour for Dhs7.5 billion

Staff Reporter, Gulf Today

Emaar Properties announced on Friday it would fully acquire Dubai Creek Harbour, the major development located along the historic Dubai Creek waterfront, from Dubai Holding for a consideration of Dhs7.5 billion to be paid equally in cash and shares of Emaar Properties, thus making Dubai Holding the second largest shareholder of Emaar.

Emaar recorded sales of Dhs4.2 billion in 2021 and Dhs 3.6 billion sales in Dubai Creek Harbour in the first half of 2022. Dubai Creek Harbour has approximately 100 million sq. ft of future development which will provide future profit potential to Emaar.

A spokesperson of Emaar said: “The purchase agreement with Dubai Holding represents another important achievement in Emaar’s rich history as we continue to expand our strategic land bank and build sustained value for our shareholders. We are determined to support the Government’s vision for sustainable urban development in Dubai while providing a redefined experience for residents and visitors.”

A spokesperson of Dubai Holding said: “We are pleased to announce the sale of Dubai Creek Harbour to Emaar, subject to finalisation. This is a landmark transaction that benefits both parties. As joint venture partners, we have created meaningful value in Dubai Creek Harbour, and the transaction represents a significant monetisation for us. We look forward to our investment in Emaar as a reference shareholder and the diversification benefits it offers, and we are confident that Dubai Creek Harbour will continue to reach greater heights and success.”

Emaar Properties announced good growth in first half profitability, underpinned by robust property sales and growth in the performance of recurring revenue businesses. This performance is testament to the continued confidence in Emaar’s brand and overall post-pandemic recovery of Dubai’s economy, led by the real estate market.

Led by robust performance of its core property development business, and complemented by growing recurring revenue operations, Emaar recorded strong first half revenue of Dhs13.575 billion (US$ 3.696 billion), growth of 10 per cent compared to H1 2021. H1 2022 EBITDA increased by 66 per cent to Dhs 6.112 billion (US$ 1.664 billion) compared to H1 2021 as a result of higher revenue with improving margins and continued cost optimization.

Successful launch of properties by Emaar, both in the UAE and international markets, and concerted focus on sales of under-construction projects resulted in Emaar achieving record first half group property sales of Dhs 17.672 billion (US$ 4.811 billion), an increase of 5 per cent compared to the H1 2021 sales of Dhs 16.842 billion (US$ 4.585 billion).

During the second quarter of 2022, Emaar recorded an increase in EBITDA of 53 per cent to Dhs 2.932 billion (US$ 798 million) compared to EBITDA of Dhs 1.922 billion (US$ 523 million) in the same period of 2021. Emaar’s Q2 2022 revenue stood at Dhs 6.940 billion (US$ 1.889 billion), an increase of 8 per cent compared to Q2 2021 revenue of Dhs 6.439 billion (US$ 1.753 billion).

The strong property sales backlog of Dhs 47.982 billion (US$ 13.063 billion) at the end of H1 2022, which will be recognised as revenue in the future, further underlines Emaar’s robust financial position in preserving high revenue, profitability and shareholders’ return in the foreseeable future.

An Emaar spokesperson said: “We have delivered strong second quarter results of Emaar by successfully carrying on the momentum built during the first quarter of 2022. Thanks to the post-pandemic uptick in the real estate market and strong recovery of our mall, hospitality and retail assets which increased our second quarter profit this year, in comparison to the same period in 2021. We are continuing to reap the benefits of long-term investment in human talent we made last year across all aspects of our business, and Emaar is again on track to generate attractive and sustainable returns for all stakeholders.”

“On a macro-economic level, Dubai’s growing economy and recent changes in areas such as commercial companies law and visa regulations are driving growth and attracting investment across many sectors, which indirectly increases demand for our products, underpinned by our continued focus on delivering high quality products and experiences that surpass our customers’ expectations.”

With an established reputation for excellence in design, build quality and innovation, Emaar consistently offers premium experiences and lifestyle opportunities across market segments; and its integrated masterplan developments continues to remain popular with local and international investors.

Emaar Development , the UAE build-to-sell property development business, majority-owned by Emaar Properties, maintained strong property sales momentum in Dubai, recording highest ever property sales in H1 of Dhs 15.216 billion ($4.143 billion), 10% higher than same period in 2021. Emaar Development reported H1 2022 revenue of Dhs 7.282 billion (US$ 1.983 billion) and recorded 15 per cent growth in EBITDA to Dhs 2.564 billion (US$ 698 million).

Emaar’s international real estate operations recorded property sales of Dhs 2.428 billion (US$ 661 million) in H1 2022 and contributed revenue of AED 2.068 billion (US$ 563 million) which represents 15 per cent of Emaar’s total revenue.