Dubai ruler becomes second-largest investor in developer Emaar

Dubai ruler becomes second-largest investor in developer Emaar

DUBAI - Emaar Properties said on Thursday it was buying out its joint venture partner in a Dubai real estate development, in a 7.5 billion dirham ($2 billion) deal that will see Dubai's ruler become the developer's second-largest shareholder.

Dubai's Emaar, the emirate's top developer, said in a statement it had reached a deal with Dubai Holding, Sheikh Mohammed bin Rashid Al Maktoum's investment vehicle, to buy its stake in their Dubai Creek Harbour joint venture.

The deal would be equally financed in cash and Emaar shares, making Dubai Holding its second-biggest shareholder, Emaar said.

The announcement was made after the stock market had closed. Emaar shares are up 16.5% so far this year to 5.7 dirhams, according to data provider Refinitiv.

It was not immediately clear how many shares Dubai Holding would own. Emaar's current biggest shareholder is the Investment Corporation of Dubai, the emirate's sovereign wealth fund, which owns 24.07% or about 1.97 million shares, according to Refinitiv.

Rothschild & Co said it was the sole financial advisor to Dubai Holding on the deal.

Dubai Creek Harbour, a residential, retail and commercial real estate development, is expected to cover 6 square kilometres once completed, according to its website. Development of the project stalled in