Emaar Says It’s Looking at Financing Options for Development
Emaar Properties PJSC (EMAAR), the Dubai developer of the world’s tallest tower, said it’s seeking financing options and that details of reports that it plans to raise cash backed by the emirate’s largest shopping mall were wrong.
The company “continuously explores various options for raising finance to meet our long-term development plans, including refinancing of debts,” Emaar said in an e-mail late yesterday. Emaar said it will disclose “any such details regarding our financing plans at the appropriate time.”
Commenting on a report it aims to raise $800 million in loans, using four shopping malls including the Dubai Mall as collateral, Emaar said “details regarding a financing plan are categorically incorrect and purely speculative in nature.” The statement didn’t say which details were incorrect.
The facility, consisting of a five-year tranche and an eight-year amortizing loan, was said to be arranged by Dubai Islamic Bank, National Bank of Abu Dhabi and Standard Chartered Plc., Reuters reported yesterday, citing unidentified people.
Emaar, the United Arab Emirates’ biggest developer by market value, has been hurt by a more than 60 percent slump in property prices in its home market as speculative demand waned and banks tightened lending after mid-2008. The company reported a 69 percent decline in second-quarter profit as it wrote down a bank investment and completed fewer homes.
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