Dubai: Developer Emaar Properties said it will roll over $1.23 billion (Dh4.5 billion) debt maturing in 2010 into long-term project financing deals with analysts adding the pressure to make hasty divestments was now off.
Emaar has Dh4.5 billion of loans maturing in 2010, its financial statements posted on the company's web site show.
"The loans maturing in the next one year are primarily bridge loans for Emaar's international projects, and as per terms, are to be converted into longer-term project financing," the company said in an emailed statement yesterday.
"Emaar expects the loans to be converted into project finance during this year," the statement said.
Emaar, which is 31.2 per cent owned by the Dubai government, is the Arab world's largest listed developer.
In December, a planned merger between Emaar and three real estate units owned by Dubai Holding was called off.
"Emaar's debt position is very comfortable and the company has one of the lowest debt to equity ratios," the statement said.
Shuaa Capital analyst Roy Cherry said rolling over the debt would enable Emaar to avoid premature divestments of key investment properties.
Rates increase
"The maturity extension won't be a problem for most, but the rates will likely see an increase," he said.
"The creditors see the strong balance sheet, the growing recurring cash flow generated by the investment property portfolio and relatively low debt-to-equity levels."
"The company sits on extremely attractive high value assets producing healthy recurring returns, like Dubai Mall and the downtown hotels," Cherry said.
"Emaar is not in a distressed state."
Analysts said Emaar's cash flow remains solid this year and the debt rollover is a positive move.
