Emaar Properties, the developer of the world’s tallest tower in Dubai, incurred a loss of 38.5 million dirhams ($10 million) from the sale of Hamptons Group Ltd.’s operations in Europe, UK and Asia to Countrywide.
Dubai’s largest developer sold the unit with effect from June 1 for 428.1 million dirhams after acquiring Hamptons in August 2006, the company said in a statement. Emaar retains the right to operate Hamptons’ business, a property broker and real- estate services consultant, in the Middle East and North Africa.
Emaar also incurred a loss of 14.1 million dirhams from the sale of its holding in Raffles Campus Pte. Ltd., a company that owns and manages an education business in Singapore, Vietnam and Hong Kong, according to the statement.
The developer reported a profit of 801.9 million dirhams for the second quarter compared with a loss of 1.28 billion dirhams a year earlier as apartment sales rebounded and a one- time loss last year didn’t recur. Emaar, a company in which Dubai government owns about 31 percent of the share, has been hurt in the past 18 months from a downturn in the property industry in the sheikhdom.
Emaar also sold a commercial property in the quarter for 331.7 million dirhams, the company said in the statement, without identifying the building or the buyer.
The property sold is building Number 5 in the Emaar Square project near Burj Khalifa, the world’s tallest tower, and houses the local offices of HSBC Holdings Plc, The National newspaper reported today, citing people it didn’t identify. (Bloomberg)