The new property entity due to be formed through the proposed merger of Emaar Properties, Dubai Properties, Sama Dubai and Tatweer will have a combined asset base of Dh194 billion. Dubai Properties, Sama and Tatweer have a solid land bank that will contribute positively to the consolidation.
The 3 real estate developers excluding Emaar Properties had a total asset book of Dh126 billion at the end of 2008 and an external debt of Dh3.4 billion. This is just 2.7% of the total assets of all 3 companies.
Although the four will join assets, they will also have to share debt of Dh13.4 billion. Emaar Properties is the only developer of the 4 to be listed on DFM had total assets worth Dh68 billion at the end of March and a debt obligation of Dh10 billion.
