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Mon 8 Mar 2010 03:48 PM

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Emaar pulls out of $600m Indonesian deal - report

Gov't official does not give reason for withdrawal from Lombok Island project.

Emaar pulls out of $600m Indonesian deal - report
DUBAI DEVELOPER: Emaar has pulled out of a project on the Indonesian island of Lombok, officials are reported as saying. (Getty Images)

Dubai developer Emaar Properties has pulled out of a $600 million project in Indonesia, an Arabic daily said on Monday, citing an Indonesian government official, without giving a reason for the exit.

The mixed-use project on Lombok Island will be retendered internationally, the official was quoted as saying. Gulf companies and a large Indian company have shown interest in completing its development, the official said.

Emaar was not immediately available for comment.

The builder of the world's tallest tower signed a deal to develop the project with Perusahaan Pengelola Aset in 2007.

In February, Emaar said it would focus on mid-income housing in emerging markets and overseas expansion to boost 2010 revenue after returning to profit in the fourth quarter.

Emaar pulled out of a $20 billion development in Algeria in 2009 as a result of the economic downturn.

The group's shares closed 5.4 percent higher earlier on Monday after reports India's market regulator had given the go-ahead for Emaar's Indian joint venture to launch an initial public offering. (Reuters)

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