Dubai: Emaar Properties is watching the markets closely to make a decision on a time frame for listing its hotels business, the company said on Thursday.
“The timing of the IPO will be dependent on the market conditions. We are watching the markets closely and will take a decision to list at the appropriate time,” an Emaar spokesperson said in an emailed statement.
This comes after a Bloomberg report said Emaar had hired Rothschild as adviser for a planned listing of the hotels operations in the second half of this year.
“Emaar’s strategy is to make its business segments independent listed companies. This approach aims to provide the businesses with appropriate financial and operational means to grow faster and become among the most successful companies in their industries,” the statement added.
The developer sold a 15.4 per cent stake in retailing unit Emaar Malls Group in an initial public offer in September, raising $1.6 billion after a heavy oversubscription.
After the listing, it said an offer of Emaar Hospitality would follow “as soon as possible.”
The company has also agreed with banks to slash the interest rate on a $500 million syndicated loan, in the latest example of a local company winning a cut in funding costs from cash-flush bank lenders.
Emaar said that as of Dec. 11, the pricing on the loan had fallen by 1.5 per cent, with banks agreeing to the London interbank offered rate plus 1.25 per cent.
Margins on the loan will range to 1.75 per cent based on loan drawdown proportions, it added.
The loan was signed in September 2013 with $450 million to mature in 2018 and $50 million to come due in 2020, according to Thomson Reuters data. Emaar did not reveal how many banks were in the syndicate or identify them by name, but said it mostly consisted of banks from the United Arab Emirates.
Emaar reported a 21 per cent rise in third-quarter net profit in October. Dubai’s government has a minority stake in Emaar.
