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Emaar to list shopping malls & retail subsidiary; AED 9 billion raised through 25% equity offering to be distributed to shareholders

Dubai, UAE; March 15, 2014: Emaar Properties PJSC, the global property developer, has announced plans to list its shopping malls & retail subsidiary, marking one of the largest public offerings in the region since 2008.

  • One of the largest public offerings in the region since 2008

  • High-growth business of Emaar, malls & retail recorded 2013 revenue of AED 2.837 billion (US$ 772 million)

  • Emaar has over 5.8 million sq ft of gross leasable area in Dubai; The Dubai Mall welcomed over 75 million visitors in 2013

Subject to market conditions, Emaar will list up to 25 per cent of the Emaar Malls Group equity through a secondary offering of shares. The funds raised through the sale of 25 per cent of the company, estimated to be between AED 8 to 9 billion (over US$ 2 to 2.4 billion), will be primarily distributed as dividend to the company’s shareholders.

Emaar Malls & Retail is one of the high-growth business entities of Emaar, having recorded full-year 2013 revenue of AED 2.837 billion (US$ 772 million), an increase of over 20 per cent compared to the revenue in 2012. The gross operating profit for the Malls and Retail business increased to AED 2.232 billion (US$ 608 million) compared to AED 1.856 billion (US$ 506 million) in 2012.

Mohamed Alabbar, Chairman of Emaar Properties, said: “We are thankful to His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, for his guidance and inspiration, which has helped make Emaar an established brand. The proposed listing of Emaar Malls & Retail and the distribution of funds raised through the sale of shares as dividend underlines our commitment and gratitude to our shareholders, including the Government of Dubai, for their unwavering support to the company since its inception in 1997.

“Over the years, they have placed their utmost trust in our development strategy of business segmentation and expansion, as we invested our revenues back into the business to ensure long-term value creation. Today, Emaar’s shopping malls and retail subsidiary is our high-performing business, which derives its growth impetus from the sustained growth of Dubai and its reputation as an international business and leisure hub.

“Dubai today is the first choice of destination for more than 2.5 billion people who are less than five hours of flying distance. Our malls business will benefit from the higher growth rate in spending, increased disposal income and economic activity of these emerging markets.”

Mr. Alabbar said that the growth of the shopping malls and retail business also highlights Emaar’s contribution to Dubai’s economy. “As a National Champion company, Emaar has been a firm partner in the social and economic growth of the city. The Dubai Mall, our flagship mall asset, has established its credentials as one of the world’s must-visit retail, fashion and leisure destinations, and welcomed over 75 million visitors in 2013 driving the growth of the aviation, retail, tourism and hospitality sectors.”

The decision to list Emaar’s Malls & Retail business was proposed at the Board of Directors meeting of the company, which reviewed the current and projected growth opportunities for the company, and the optimal corporate structure required for achieving its vision to become one of the most valuable companies in the world.

The Board decided that listing of various Emaar subsidiaries, with a view to creating independent companies with their own growth strategies and management structures, was imperative to achieve Emaar’s long-term growth strategies. Emaar Malls and Retail has been identified as the first subsidiary to be listed in view of its significant size, growth opportunity set and the maturity of the business. In the future, listing of other relevant subsidiaries will also be considered as and when appropriate.
With a significant gross leasable area of over 5.8 million sq ft in Dubai, Emaar’s malls assets include The Dubai Mall, Dubai Marina Mall, Souk Al Bahar and Gold & Diamond Park. The Dubai Mall’s 1,200 plus retail outlets recorded a 26 per cent rise in sales during 2013 compared to the previous year. According to market estimates, more than 50 per cent of all luxury goods sold in Dubai are purchased at the mall.

Emaar is now further enhancing the fashion and lifestyle choices at the mall with the expansion of its Fashion Avenue by another 1 million sq ft, which will add 150 new brands to the mall, in line with the goal of welcoming over 100 million visitors in the next 3 to 4 years.

The Dubai Mall's popularity as a family getaway is also defined by its 200 plus F&B outlets as well as its world-class leisure attractions including Dubai Aquarium & Underwater Zoo, with thousands of aquatic animals; SEGA Republic, the largest indoor theme park of its kind; KidZania®, the dedicated children's city; Dubai Ice Rink, an Olympic sized ice rink; and the 22-screen Reel Cinemas that can seat over 2,800 people. The mall also serves as the gateway to At the Top, Burj Khalifa, the world’s tallest observatory deck with an outdoor terrace.

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