Dubai: UAE developer Emaar clarified on Thursday that it is selling five of its hotel properties for a total value of Dh2.2 billion.
There is no separate price for each hotel and the proceeds will go towards the financing of other commercial properties that are seen to generate higher return on investment, the developer said in a statement to the Dubai Financial Market (DFM).
The master developer of Burj Khalifa issued the clarification nearly a month after it announced that it has secured a deal to divest some of its hospitality assets.
Emaar announced in November that it is selling the following properties to Abu Dhabi National Hotels (ADNH): Address Dubai Mall, Address Boulevard, Address Dubai Marina, Vida Downtown and Manzil Hotel,
The developer has already signed a “definitive documentation” with ADNH to formalize its intention to sell the assets.
“The total sale price for all mentioned hotels is Dh2,198,000,000, subject to certain adjustments relating to working capital of these hotels,” the statement reads. “There is no separate value for each hotel individually.”
The deal is still subject to a number of conditions and if these are met, the impact of the transaction should show up in the first quarter 2019 results of the company.
“The reason for the transaction is to implement the company’s strategy and enable Emaar Hospitality to focus on management and operation of hotels while remaining asset light.”