23 August 2009
Dubai: Dubai Properties, Sama Dubai, Bawadi, Remraam and the Tiger Woods golf course will merge to form one of the largest property entities in the Middle East, according to a statement issued by their parent entity, Dubai Holding.
The strategic move comes just two months ahead of a mega merger planned between Dubai Holding's property entities - Dubai Properties, Sama Dubai, Tatweer - and Emaar Properties PJSC, announced in June. As per the government's plan, the merger is to be completed by October.
Emaar's merger with Dubai Holding's three subsidiaries - Dubai Properties LLC, Sama Dubai LLC and Tatweer LLC - would create a company with an asset base of Dh194 billion ($52.8 billion) and a debt of Dh13.4 billion, or roughly 7 per cent of total assets.
"This realignment among Dubai Holding entities was widely expected ahead of the big merger between its real estate companies and Emaar properties," said Tariq Ramadan, a property analyst and chairman of Tharaa Holding.
"I see this as a positive move. When the property sector was booming, the government has launched a number of companies, although that was not necessary. However, time has changed.
"Right now, consolidation and merger are the way to move forward. This merger will help Dubai Holding to move ahead with the merger of its real estate assets with Emaar Properties."
Dubai Holding and Emaar are committed to finalising the merger by October.
"The proposed consolidation would create a robust and strategic asset base while joining the strengths of the various companies," Emaar had earlier said in a statement posted on the Dubai Financial Market, where its shares are listed.
RBS and Merrill Lynch are advising Emaar Properties and Dubai Holding respectively on the merger, as due diligence continues.
Sama Dubai and Dubai Properties together possess one of the largest land banks within the Middle East and North Africa region covering a geographical stretch from the UAE to Morocco.
Dubai Properties which has developed Jumeirah Beach Residence and is also behind large projects such as the Business Bay, Culture Village, the Villa, Waha Villas, Mudon and Tijara Town, has a large land bank in Dubai.
Sama Dubai, which was expected to develop the Lagoons, Dubai Towers - Dubai, has a solid landbank in the Middle East and North Africa, including Oman, Qatar, Bahrain, Turkey, Tunisia, Algeria and Morocco.
Dubai Holding, yesterday said it has realigned its real estate and business park entities under two verticals as part of its restructuring programme announced recently.
Although it is unclear under which brand name the realigned real estate entities under its property verticals will persist, sources and analysts predict, they will eventually align under Dubai Properties Group.
Gulf News tried unsuccessfully to reach Dubai Holding and Dubai Properties officials.
Dubai: Dubai Properties, Sama Dubai, Bawadi, Remraam and the Tiger Woods golf course will merge to form one of the largest property entities in the Middle East, according to a statement issued by their parent entity, Dubai Holding.
The strategic move comes just two months ahead of a mega merger planned between Dubai Holding's property entities - Dubai Properties, Sama Dubai, Tatweer - and Emaar Properties PJSC, announced in June. As per the government's plan, the merger is to be completed by October.
Emaar's merger with Dubai Holding's three subsidiaries - Dubai Properties LLC, Sama Dubai LLC and Tatweer LLC - would create a company with an asset base of Dh194 billion ($52.8 billion) and a debt of Dh13.4 billion, or roughly 7 per cent of total assets.
"This realignment among Dubai Holding entities was widely expected ahead of the big merger between its real estate companies and Emaar properties," said Tariq Ramadan, a property analyst and chairman of Tharaa Holding.
"I see this as a positive move. When the property sector was booming, the government has launched a number of companies, although that was not necessary. However, time has changed.
"Right now, consolidation and merger are the way to move forward. This merger will help Dubai Holding to move ahead with the merger of its real estate assets with Emaar Properties."
Dubai Holding and Emaar are committed to finalising the merger by October.
"The proposed consolidation would create a robust and strategic asset base while joining the strengths of the various companies," Emaar had earlier said in a statement posted on the Dubai Financial Market, where its shares are listed.
RBS and Merrill Lynch are advising Emaar Properties and Dubai Holding respectively on the merger, as due diligence continues.
Sama Dubai and Dubai Properties together possess one of the largest land banks within the Middle East and North Africa region covering a geographical stretch from the UAE to Morocco.
Dubai Properties which has developed Jumeirah Beach Residence and is also behind large projects such as the Business Bay, Culture Village, the Villa, Waha Villas, Mudon and Tijara Town, has a large land bank in Dubai.
Sama Dubai, which was expected to develop the Lagoons, Dubai Towers - Dubai, has a solid landbank in the Middle East and North Africa, including Oman, Qatar, Bahrain, Turkey, Tunisia, Algeria and Morocco.
Dubai Holding, yesterday said it has realigned its real estate and business park entities under two verticals as part of its restructuring programme announced recently.
Although it is unclear under which brand name the realigned real estate entities under its property verticals will persist, sources and analysts predict, they will eventually align under Dubai Properties Group.
Gulf News tried unsuccessfully to reach Dubai Holding and Dubai Properties officials.
By Saifur Rahman
© Gulf News 2009
