(MENAFN-Khaleej Times) emaar malls & retail is one of the high-growth business entities of emaar, having recorded a full-year 2013 revenue of dh2
Emaar properties said on tuesday that it had hired morgan stanley to advise on the sale of a 25 per cent stake in its high-performing shopping malls and retail business.
Mohamed alabbar, chairman of the dubai-based developer, was quoted on tuesday as saying that emaar was also considering appointing a local bank as additional adviser on the secondary offering.
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.
Emaar seeks to complete the deal by mid-june and plans to sell the shares on nasdaq dubai and in london, alabbar said in an interview with bloomberg television.
Emaar said on march 15 it was planning to raise dh8-dh9 billion from the secondary public offering and the proceeds would primarily be used to pay a dividend to shareholders, including dubai government with a stake of almost 30 per cent.
Standard & poor’s said on monday it planned no rating action relating to emaar properties following the secondary offering move.
Tommy trask, director of corporate ratings at s&p, pointed out that emaar is in a comfortable funding position and enjoys a strong reputation with investors.
Emaar, which sold properties worth dh12 billion in 2013 and generated dh10.3 billion of revenue, raised its dividend payment for 2013 to 15 per cent from 10 per cent in the previous year. emaar’s net profit jumped 21 per cent to dh2.568 billion in 2013 compared to the previous year on the back of dubai’s economic growth and surging investor confidence. the company’s annual revenue for 2013 reached dh10.328 billion, a 25 per cent increase on 2012 revenues of dh 8.240 billion. emaar’s shopping malls, retail and hospitality, and leisure business units together contributed dh4.8 billion to last year’s revenue.
Emaar’s property business generated a total revenue of dh5.528 billion as revenues from its global operations rose 11 per cent to dh 1.167 billion.
Emaar is also preparing for a public offer by its wholly-owned egyptian unit, emaar misr, and will consider listing other units such as its hotels business.
In february, standard and poor’s raised its long-term rating of emaar to bbb-minus, the lowest investment grade, from bb-plus.
Moody’s investor service also recently upgraded the corporate family rating of emaar properties, to ba1 from ba3, and the company’s probability of default rating to ba1-pd from ba3-pd.
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