Sees outstanding as "fully recoverable"
Dubai-headquartered real estate developer Emaar Properties received Dh214.43 million from its subsidiary, Islamic mortgage provider Amlak Finance, in 2010, and believes that the remainder Dh712m that its arm owes it is "fully recoverable," according to the Emaar financial statement published on the Dubai bourse today.
"An amount of Dh214.43m was received from Amlak during the year ended December 31, 2010 (December 31, 2009: Dh196.62m)," the Emaar statement said, adding that "the group's management believes that the loan dues from Amlak is fully recoverable."
According to the statement, Amlak, which is 48 per cent owned by Emaar, owed its parent firm Dh875.58m at the end of 2009, and managed to pare it down to Dh711.98m in outstanding dues at the end of 2010. Emaar also said that the loan to Amlak bears flexible interest.
"The amount owed by Amlak Finance is unsecured and earns an average return ranging from 4 to 4.5 per cent per annum (2009: average return ranging from 3 to 4.5 per cent per annum)," Emaar said in its financial statement published today.
"The above loan includes Dh869.89m (2009: Dh634.03m) relating to a credit facility extended to Amlak in the normal course of business for settlement of instalment payments relating to sale of properties, where customers have availed of a financing facility from Amlak," Emaar said.
Trading in Amlak shares remains suspended until the government committee finalises its recommendations. Emaar said that the "Government Committee for Amlak's affairs continues t explore various options relating to financial restructuring of Amlak."
© Emirates 24|7 2011
