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Is the merger complete?
Dubai Holding’s property subsidiaries – Dubai Properties, Sama Dubai and Tatweer – have been merged as part of the conglomerate’s restructuring. So, where does Emaar fit in?
August 23, 2009 12:50 by Dana El Baltaji
Dubai Holding revealed on Saturday it had created two verticals – property and business parks – as part of its massive restructuring plans.
“The process of realignment has led to the development of Dubai Holding into a more efficient organization, able to respond more effectively to the needs of its stakeholders,” Ahmad Bin Byat, CEO, Dubai Holding said in a company statement. “The transition has been smooth and had minimum impact on our relationships with our partners and clients.”
Bin Byat also said that “existing project plans will remain in place,” in spite of the merger.
The property merger, which consists of Dubai Properties, Sama Dubai and Tatweer, is part of Dubai Holding’s plans to consolidate its seven verticals into four categories: property, business parks, hospitality and investments.
“The realities of the global economic climate have made it necessary for us to look at our portfolio in a different way,” said Bin Byat last on August 16, when the conglomerate’s restructuring plans were announced. “In order to remain competitive in the marketplace, and be sure that we are poised for success once the markets open up, we’ve undertaken a number of changes that will reinforce and strengthen our business.”
He added: “We have a strong and diversified asset base which includes our employees, our projects and our international partners. Restructuring our portfolio in this manner is going to positively affect our business operations and enhance our customer service. In this changing environment we have adapted and therefore our portfolio stands strong and is ready to take advantage of new opportunities.”
The property merger, coupled with the Dubai government’s announcement that it plans to speed up the issuance of the second-half of the $20 billion bonds program, has helped boost investor sentiment in the property market, according to a report in Bloomberg.
Investor confidence in Dubai’s property market declined after real estate prices crashed in September 2008. Property prices have fallen by almost 50 percent from their peak in 2008, forcing the emirate’s economy into contraction after years of double-digit growth.
However, market analysts have said that large scale mergers may help bring back credibility to Dubai’s property market.
But the question on everyone’s mind is where does Emaar Properties fit in all this? Last Kipp heard, the developer announced a merger with Dubai Holding’s property arms. Does anyone have any updates?