(MENAFN-Khaleej Times) emaar properties on saturday announced its plan to raise up to dh9 billion through a listing of its shopping malls and retail subsidiary
Without disclosing any date and place of the secondary offering of shares, emaar said the company will list up to 25 per cent of the emaar malls group equity.
The funds, estimated to be between dh8 billion to dh9 billion, will be primarily distributed as dividend to the company’s shareholders including the government of dubai, the property developer said in a statement.
Emaar malls & retail is one of the high-growth business entities of emaar, having recorded a full-year 2013 revenue of dh2.837 billion, an increase of over 20 per cent compared to the revenue in 2012. its gross operating profit increased to dh2.23 billion compared to dh1.86 billion in 2012.
The proposed listing of emaar malls & retail and the distribution of funds raised through the sale of shares as dividend underlines our commitment and gratitude to our shareholders, including the government of dubai, for their unwavering support to the company since its inception in 1997,” emaar properties chairman mohamed alabbar said in the statement.
“today, emaar’s shopping malls and retail subsidiary is our high-performing business, which derives its growth impetus from the sustained growth of dubai and its reputation as an international business and leisure hub,” alabbar added.
With a significant gross leasable area of over 5.8 million sqft in dubai, emaar’s malls assets include the dubai mall, dubai marina mall, souk al bahar and gold & diamond park.
The dubai mall’s 1,200-plus retail outlets recorded a 26 per cent rise in sales during 2013 compared to the previous year.
According to market estimates, more than 50 per cent of all luxury goods sold in dubai are purchased at the mall.
The decision of listing was proposed at the board of directors meeting of the company, which reviewed the current and projected growth opportunities for the company, and the optimal corporate structure required for achieving its vision to become one of the most valuable companies in the world.
Dividend and bonus shares
In a separate statement, emaar properties said that its board was proposing a 15 per cent cash dividend and a 10 per cent bonus share issue for 2013.
Emaar had recorded full-year 2013 net profit of dh2.568 billion and annual revenue of dh10.33 billion.
The company’s strong performance was underlined by recurring revenues from the company’s shopping malls and retail, and hospitality and leisure business units, which together contributed dh4.8 billion to financial year 2013 revenue, or 46 per cent of the total.
Emaar’s property business generated total revenue at dh5.528 billion. revenues from the company’s global operations in 2013 were dh1.167 billion, representing 11 per cent of the total revenue.
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