Emaar Properties gets a Dubai Mall-sized lift to bottom-line after merger move

Emaar Properties gets a Dubai Mall-sized lift to bottom-line after merger move

That's exactly what Emaar Properties will get back as soon as its shareholders as well as those of Emaar Malls give the signal for the merger to go ahead. It was late on Tuesday (March 2) that one of the region's biggest developer confirmed plans to bring the mall and retail unit back into its fold. It was in 2014 that Emaar Malls was listed on the local stock market. At the time it was felt that a standalone entity would drive higher growth and shareholder returns. Emaar Properties derives the bulk of its current revenues from its pipeline of offplan residential projects, the bulk of which in Dubai. Emaar listed multiple reasons for the move, including reinforcing its status as a fully integrated developer. But just as important, the Dubai Mall and other retail assets under Emaar Malls will provide the parent company with ample "recurring revenues" from all of the units leased out. The Emaar statement issued had this to say: "“¦ further reduce volatility through an increase in the proportion of earnings from recurring businesses." And "enhance Emaar Properties' standing in regional capital markets and increase its stock liquidity on the Dubai Financial Market, while maintaining inclusion