By Ed Attwood
JV rubbishes claims that Dubai developer is planning to exit India
Emaar MGF, the Indian joint venture firm in which Dubai property giant Emaar has a 44 percent stake, has denied media reports that it is planning to divest assets.
A report in the Indian press quoted two people familiar with the developer as suggesting that Emaar MGF’s move to value its assets was in preparation for Emaar’s exit from the country.
However, Emaar MGF has rubbished this claim.
“India is one of the key markets for Emaar Properties PJSC, as part of its strategic expansion and growth plans, and we are committed to our joint venture operations in the country with MGF Developments,” said Emaar MGF in a company statement.
“There is no move to split the asset portfolio of Emaar MGF, and any reports to the contrary are baseless rumours. And as a company policy, we do not respond to such market rumours or speculation,” the statement said.
The firm admitted that it was in the process of evaluating its assets, although it indicated that this was being carried out “for banking or allied purposes” and that parent company Emaar routinely carries out this practice across all its geographic markets.
Emaar MGF said that its current project portfolio consists of 44 projects across more than 20 cities in the country.
The company added that it had reduced its debt by just over 23 percent to $1bn since March 2009
Emaar Properties chairman Mohamed Alabbar said earlier this week that the firm’s foreign investments rose in value to AED22bn ($5.98bn).
The developer behind the world’s tallest tower posted a 62 percent fall in profits in the fourth quarter on high writedowns and impairments related to its associates.