Dubai’s Emaar plans to sell ho­tels and non-core as­sets in In­dia

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - Bidya Sa­pam


MUM­BAI: Dubai’s Emaar Prop­er­ties PJSC, which built the emi­rate’s iconic Burj Khal­ifa tower, is plan­ning to sell sev­eral non-core as­sets in In­dia in­clud­ing land and a ho­tel, said three peo­ple aware of the de­vel­op­ment. The de­vel­oper now plans to fo­cus on its premium projects and ex­pand on its own in In­dia fol­low­ing its sep­a­ra­tion from lo­cal part­ner MGF De­vel­op­ments Ltd. The com­pany has al­ready started the process of sell­ing its 90- room For­tune Select ho­tel in Jaipur, said the first of the three per­sons. It is also look­ing to sell10-15 land parcels on the out­skirts of cities in­clud­ing Mum­bai, Delhi and Chen­nai, which were ac­quired to build ho­tels and for other com­mer­cial de­vel­op­ment. Emaar has hired prop­erty con­sul­tant CB RE In­dia to sell the ho­tel and land as­sets, the peo­ple cited above said on con­di­tion of anonymity .“Em a ar is ex­it­ing from some of their non­core as­sets as it plans togo on its own now. Most of them are at land stage which they bought for de­vel­op­ment but it never hap- pened,” said the se­cond per­son, adding that the strat­egy is aligned with its plan to fo­cus on lux­ury res­i­den­tial de­vel­op­ment in big cities. While the value of its land as­sets could not be as­cer­tained, the ho­tel is likely to fetch around Rs90-100 crore, said an of­fi­cial who did not want to be iden­ti­fied. Emaar Prop­er­ties and CBRE didn’t re­spond to email queries.

Em a ar en­tered In­dia in 2005 by in­vest­ing Rs8,500 crore in a joint ven­ture with MGF De­vel­op­ments, mak­ing it one of the largest for­eign di­rect in­vest­ments in the coun­try’s real es­tate sec­tor.

In 2016, the com­pa­nies de­cided to part ways. In Jan­uary, the Na­tional Com­pany Law Tri­bunal ap­proved the pro­posed de merger scheme of Em a ar MG FL and Ltd, al­low­ing both com­pa­nies to op­er­ate sep­a­rately. A 2 April Press Trust of In­dia re­port said Emaar Prop­er­ties has ap­pointed its ex­ist­ing chief strat­egy of­fi­cer Ha di B adria sm an ag­ing di­rec­tor of its In­dia busi­ness. The com­pany has around 5,000 acres and has raised debt to fund hous­ing projects in Gu­ru­gram, Jaipur, Luc­know, Mo­hali and Chen­nai, said the re­port. Many other de­vel­op­ers such as Su­per tech Ltd and Al­pha­Corp Pvt. Ltd are sell­ing as­sets such as ho­tels and malls to raise funds to re­pay debt or fi­nance ex­ist­ing projects.

“Over a pe­riod of time, be­cause of the lack of liq­uid­ity and stressed bal­ance sheet, the ave- nue of fundraising has al­most dried up. One of the ways to man­age liq­uid­ity by de­vel­op­ers is to sell some non-core as­sets like land parcels or com­pleted as­sets which are yield gen­er­at­ing ,” said S has hank Jain, part­ner( trans­ac­tion ser­vices) at PwC In­dia, a re­search and con­sul­tancy firm.

Emaar Prop­er­ties has been known for de­vel­op­ing premium res­i­den­tial projects an­dif it hasa land bank out­side the city where premium de­vel­op­ment is not pos­si­ble, then it may fo­cus on core ar­eas which com­mand a premium, he added.

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