Emaar Properties has acquired full ownership of its Egyptian subsidiary, Emaar Misr, following tripartite discussions with Egyptian Government representatives and the company's Egyptian partners - Artoc Group for Investment and Development.
Emaar Misr has a share base of 37,730,000 of which 60% 22,638,000 were held by Artoc. This has now been transferred to Emaar in a final committed deal valued at EGP808.9 million (approx. €92m), providing Emaar UAE with 100% ownership of its operations in Egypt.
"The Egyptian Government has asserted its commitment to developmental initiatives by facilitating the smooth negotiations that led to the acquisition of Emaar Misr. We fully respect the decision of the Egyptian Government, represented by the Cairo Stock Exchange listing authority, not to list the shares of Emaar Misr as per their regulations," said Mr Mohamed Ali Alabbar, Chairman, Emaar Properties.
He added: "We have received full assurances from the Government of Egypt that the Marassi project will be reinstated upon the successful completion of the deal. Both parties have worked out all issues to reach an agreement and Emaar Properties is in the process of taking control of the company today."
"Egypt is a key market for Emaar, and we will continue ahead with our current projects Uptown Cairo and Marassi. These projects can energise the local economy and create more job opportunities for Egyptians," said Mr Alabbar.
Emaar is currently the largest private Foreign Direct Investor in Egypt with an investment portfolio of EGP33 billion (approx. €3.8bn). Emaar is evaluating two future projects in Egypt one, on the Cairo-Alexandria Highway and the other on Fifth Avenue in Cairo.
He added: "The acquisition of Emaar Misr will enable us to develop our current and future projects in Egypt according to the highest international standards in quality and customer service."
Emaar's ongoing projects in Egypt Uptown Cairo and Marassi will be completed on-schedule. "We have already honoured all our financial commitments towards Emaar Misr and will continue full-steam ahead with our development plans for the country," said Mr Alabbar.
Uptown Cairo is an EGP22.81-billion (approx. €2.6bn) mixed-use development spread over 4 million m² in downtown Cairo. The mixed-use project will include a central town center, private clubs, hotels, golf course, restaurants, cafes, schools, swimming pools, healthcare facilities, offices, shopping centers and places of worship.
Marassi is a 1,544-acre tourist resort project of development value EGP9.92 billion (approx. €1.1bn) located on Sidi Abdel Rahman and Alamein the land won by Emaar in a keenly contested bid for EGP998 million (approx. €113m). Emaar will develop a resort with up to 3,000 hotel rooms, a marina, golf course, hospital, healthcare facilities and total township development.
Source: Property World