By Ben Robert www.constructionweekonline.com
Emaar Properties, the Dubai developer behind the Burj Khalifa, has moved to quash rumours that the company would provide a loan to Amlak Finance that would be converted into equity.
In a statement to the Dubai Financial Market today, Emaar Properties has said that the committee restructuring Amlak Finance, the publicly listed Islamic financing house that has a specialism in home loans, had considered a number of options, which included a AED 230 million loan-into-stock deal.
“Other better and viable options have been identified, which are now being considered and discussed,” said the statement.
The issue was raised during a television interview on al Arabiya with Mohammed Alabbar, Emaar chairman, who said: “I believe if this is part of the solution (for Amlak) we will raise the stake.”
Amlak Finance is the first specialised home finance provider in the UAE with the biggest market share, according to 2007 financial reports. However, the company has seen a series of heavy losses in the last 18 months on the back of loans that have soured in the midst of Dubai’s property downturn.
It returned to profit for the first nine months of 2010, posting an AED 2.3 million net gain compared to a loss of AED 178.6 million for the same period last year.
Mohammed Al Shaibani, deputy chairman of the Dubai government’s supreme fiscal committee, told Reuters at the end of November that a resolution for Amlak Finance could be found during the first quarter of 2011.