Dubai: Emaar Properties plans to raise its stake by up to 3 per cent in its development business, whose shares have lost a quarter of their value since the firm listed in 2017.
The additional 3 per cent stake would be valued at about Dh530 million ($144 million) based on Emaar Development’s closing share price on Friday. The shares ended the 2.9 per cent lower before Emaar Properties clarified about the percentage of stake it’s seeking to raise in the unit. Emaar Properties already holds 79 per cent in the unit.
Emaar Properties’ shares have gained about 10 per cent this year on the back of a rebound in Dubai’s property prices, which have bounced back strongly over the past year. Dubai’s luxury home market should keep growing after a spectacular turnaround in 2021, property consultant Knight Frank said in March.
The company raised Dh4.82 billion dirhams ($1.31 billion) from the sale of a 20 per cent stake in its development business in 2017. The stock has since dropped about 25 per cent.
Top performance
Sale of residential properties surged at Emaar Properties last year as Dubai’s biggest developer gained from a strong rebound in the real-estate market.
Revenue from the residential segment climbed 51 per cent to Dh17.5 billion ($4.8 billion), according to Emaar’s full financial results. Income from sale of commercial units and land, and hospitality business also increased.
