DUBAI, June 7 (Reuters) - Dubai's Emaar Propertiessaid on Wednesday it plans to offer up to 30 percent of its United Arab Emirates real estate development business in an initial public offering.

The decision to hive off the unit in a public share sale and a listing on the Dubai Financial Market (DFM) came after an internal review of Emaar's asset values, Emaar said in a statement published on the Dubai bourse's website.

The company said the IPO would be its largest since its flotation of Emaar Malls, which raised 5.8 billion dirhams ($1.58 billion) in 2014.

Subject to market conditions, funds raised through the sale of equity would be distributed to shareholders of Emaar Properties, it said.

If successful, it will be the DFM's first new listing in two and a half years. The last IPO on the DFM was by DXB Entertainments, which began trading in December 2014.

($1 = 3.6724 UAE dirham)

(Reporting by Hadeel Al Sayegh; editing by Stephen Coates and Jason Neely) ((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))