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Tue 17 Jul 2018 11:56 AM

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Emaar plans $1.4bn sale of non-core assets - report

Emaar spokesperson said that the company "regularly considers various financing options"

Emaar plans $1.4bn sale of non-core assets - report

Emaar Properties plans to raise $1.4 billion through the sale of non-core assets including much of its hotel portfolio and a number of schools and healthcare facilities, according to a report in the Financial Times newspaper.

Citing a number of anonymous sources familiar with the matter, the FT reported that Emaar plans to raise $700 million from almost its entire hotel portfolio – with the exception of two properties – as well as $700 million from schools and clinics in its mixed-used communities.

The FT added that Emaar has hired Standard Chartered Bank and is nearing a deal with several parties.

When contacted by Arabian Business, an Emaar spokesperson said, “Emaar regularly considers various financing options as part of our strategy to streamline our business and generate significant value for the company.

“We will announce details regarding such opportunities as and when they are finalised,” the spokesperson added.

Emaar Properties recorded revenue growth of AED 5.586 billion ($1.52 billion) in the first quarter of 2018, a 37 percent increase over Q1 2017.

According to the company’s Q1 financial results, Emaar’s net profit rose 20 percent to AED 1.66 billion ($453 million) – prior to considering the effect of Emaar Development’s IPO – compared to AED 1.38 billion ($377 million) in the same period of 2017.

Taking the Emaar Development IPO into account, Emaar Properties’ net profit over the time period is AED 1.5 billion ($409 million), an 8.5 percent increase over Q1 2017.

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