By Kevin Scott, Staff Reporter www.gulfnews.com
Dubai: Emaar MGF, a subsidiary of Dubai real estate developer Emaar Properties, moved yesterday to quash rumours it was valuing the assets of its joint venture with MGF Developments in preparation for an exit or partial sale.
The company was responding to speculation in the Indian media that it had asked consultants and investment bankers to value its assets and had appointed Standard Chartered Bank to oversee the process.
Emaar Properties, the builder of the Burj Khalifa, the world’s tallest tower, is the UAE’s largest property developer by market value.
“India is one of the key markets for Emaar Properties, as part of its strategic expansion and growth plans, and we are committed to our joint venture operations in the country with MGF Developments,” Emaar MGF said in a statement sent to Gulf News.
“There is no move to split the asset portfolio of Emaar MGF, and any reports to the contrary are baseless rumours. And as a company policy, we do not respond to such market rumours or speculation,” the statement added.
Emaar MGF came under fire after building the 63.5 hectare Commonwealth Games Village in New Delhi — a development plagued by shoddy construction and delays.
The developer was penalised by Indian authorities who cashed its $45 million (Dh165.2 million) bank guarantee.
Emaar MGF says its current portfolio comprises 44 projects spread across more than 20 cities, adding that its current debt as of February 28 was Rs46.74 billion (Dh3.8 billion), which had been scaled down from Rs60.73 billion in March 2009.
The company said this and a reasonable debt equity ratio of less than 1 were achieved from internal accruals.
“Emaar MGF, on a regular basis, values its assets for banking or allied purposes. Emaar Properties, as an investor, also gets similar valuations done across its investments and business, in various geographic markets including India. Emaar MGF has re-filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India, and we are awaiting clearances from the regulator,” the statement said.