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Emaar Properties moves to consolidate control over development arm

Dubai’s real estate giant Emaar Properties has launched a voluntary cash bid to acquire the remaining outstanding shares of its subsidiary, Emaar Development. The offer, set at 15 dirhams per share, signals a strategic consolidation effort as the developer navigates a regional climate of cooling property demand.

Emaar Properties moves to consolidate control over development arm

The proposed acquisition aims to bring Emaar Development under full ownership, bypassing the current minority stakes held by outside investors. This move follows a period of significant market contraction, as off-plan residential transactions plummeted 71% during the third quarter compared to the previous year. New project launches have similarly retreated, dropping 67% according to data from Cushman & Wakefield Core.

Despite the broader regional instability, Emaar Properties reported a 9% rise in second-quarter net profit, reaching 3.67 billion dirhams. While the developer managed to leverage local demand to buffer its hospitality and entertainment sectors, international tourism remains sluggish. The company has adopted a cautious stance toward new developments, a strategy that will likely be a focal point during the upcoming third-quarter earnings call scheduled for Monday.

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