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Dubai's largest listed real estate firm Emaar Properties expects "technical talks" for its planned merger with state owned developers to be concluded within a month, its chairman said in remarks aired on Saturday.
The new firm will announce new projects after the merger, Mohamed Alabbar told Al Arabiya television, without giving details about the size of the envisaged projects or an exact date for the finalisation of the merger.
Investors and shareholders have been eagerly waiting for news on the merger, which could dilute their holdings, but would be one of the biggest in the Middle East.
Dubai Holding, owned by the ruler of the Gulf emirate, and Emaar said in June they were in advanced talks to merge four local real-estate companies.
They said at the time the move would consolidate Emaar, which is building the world's tallest tower in Dubai, with three developers owned by Dubai's ruler; Dubai Properties, Sama Dubai, and leisure developer Tatweer.
"Having an entity of this size and such assets in terms of land banks ... would have positive impact on the profitability of the firm for many years to come and on its share," Alabbar said.
Emaar said on June 27 it expected the merger to be completed within about four months. Alabbar said the delay was due to the large size of the firms and their projects.
All four firms, three of which are not listed, are prominent players in a sector badly hit by the global financial crisis after a six-year boom.
Alabbar ruled out de-listing the firm after the merger. "We are in the market... and will stay."
Emaar, which is 31.2 percent owned by Dubai's government, expects a revenue boost from it $20 billion Burj Dubai development which includes the world's tallest tower in the first quarter and 2010, said Alabbar without giving figures.
Property prices in the emirate - with its iconic palm fronds-shaped islands - have slumped since last year.
The slowdown has led to project cancellations worth hundreds of billions of dollars.
Alabbar said the projects planned after the merger would be suitable for the market. "We have finished the design of some projects. Once the merger is concluded they would be launched." (Reuters)
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READERS' COMMENTS
Posted by aamir, Dubai, UAE on Monday 23 November 2009 at 12:52 UAE time
Guys, stop complaining. If these people reduce the maintenance charges, bring transparency then how are they going to sustain, pay the salaries, repay the huge debt that they have built up trying to implement crazy ideas.
I think no sane person will touch any new Dubai projects in the near future. So, it is only these maintenance fees, other charges, leasing income etc that these people can have as income in the years to come.
I have given up hope on any recovery of the Dubai property market. I have written off my investment as non recoverable and moved on. I suggest all others who have invested to do the same and not harbour any false illusions.
Posted by Mohammed, Dubai, UAE on Sunday 22 November 2009 at 23:45 UAE time
If they don't seriously rationalize freehold property maintenance fees & visa provisions, the customers/investors/end users will never ever return, apparently so far, they want to learn this the hard way.
The second wave of the crisis is going to hit Dubai much worse than the rest of the world. I pray the fine leaders of this country realize this sooner than later & take the appropriate action to offset the impact.
Posted by Chris J, Dubai, UAE on Sunday 22 November 2009 at 21:36 UAE time
I agree that we will pay more when there is less competition. The government announced over two years ago, that there would be maintenance committees formed in communities to manage them, and yet two years later they have not occurred.
Could it possibly be because the monopoly providers of maintenance will no longer be able to gouge maintenance fees from owners to prop up their diminishing profits from property sales.
They have long known that a lack of transparency with owners will allow huge profits from maintenance. They argue that they have sub contracted out the maintenance and have reduced the fees.
There has not been one advertisement seeking maintenance providers to provide transparency, and a request of the Volunteers group failed to provide the documentation of the tenderers to provide maintenance in our building.
There is no transparency in this country and the aim is to gouge the prices. Further, I agree that the DM 5% for maintenance is not used in the freehold areas by DM, as all maintenance is provided by fees built into the maintenance of the core developer.
Posted by Mike Bradford, Dublin, Ireland on Sunday 22 November 2009 at 12:33 UAE time
Dubai needs is Antitrust & Trade Practices law in place to go forward.Too many people have burnt their fingers including large banks(including Dubai owned) and its finally the consumer trust which will bring things back to normal.Mergers are fine, they happen worldwide but their is also the whole other side which is consumer protection laws which only the govt can provide.But then Dubai Govt want to protect its own interests I suppose.
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