Emaar acquires Golden Ace debt

Emaar Properties, through its subsidiary Emirates Property Holdings Limited, has acquired $122 million worth of debt on Golden Ace Pte. Ltd's books.

The loan was in default due to the inability of Golden Ace's majority shareholder to service it.

Through the deal Emaar will now be able to exercise voting rights equivalent to 61.3% of the shares in RSH Limited (RSH).

RSH, a listed company in Singapore, has a portfolio of over 90 brand-names in sports, active lifestyle, fashion, watches, beauty and cosmetics in South East Asia and the Middle East. Brands include Zara, Massimo Dutti, Mango, Bebe, Reebok, Lacoste, and Callaway. It also has 947 stores worldwide, Emaar said in a statement posted on its website.

RSH also has a number of stores in Dubai Mall and Dubai Marina Mall.

Emaar added that it wants to utilise the brands owned by RSH for retail space currently under development in the Middle East, North Africa and South Asia.

''The availability of the franchises owned by RSH provides the platform to Emaar to have the ready availability of (the) large tenants with significant brands when opening new malls and also attracting other large franchises/brands.

''This (deal) provides significant value accretion to the Emaar Retail and Mall assets with both businesses (Retail and Malls) significantly complementing each other.

''Emaar has purchased the loan obligations of Golden Ace to protect the value and franchises of RSH. By acquiring the debt, Emaar will instill confidence in RSH's principals and ensure continuance of its businesses, which is also important to Emaar for its significant malls business.’’

READERS' COMMENTS

MORE FROM ARABIANBUSINESS.COM