Emaar Properties

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Emaar Properties
Type Real Estate (DFMEMAAR)
Industry Holding company
Founded 1997
Headquarters Dubai,
United Arab Emirates
Revenue Increase $3.307 billion (2010)[1]
Employees 10,000[2]
Website http://www.emaar.com

Emaar Properties, based in the United Arab Emirates, is a Public Joint Stock Company (PJSC) listed on the Dubai Financial Market. Established in 1997 with an initial paid-up capital of AED 1 bn,[3][4] Emaar Properties is currently the Persian Gulf region's largest land and real estate developer. Emaar's activities include property investment and development, property management services, education, healthcare, retail and hospitality sectors, as well as investing in financial service providers.[5] In 2007, the government of Dubai, through the Investment Corporation of Dubai, took a 32%[3][4][6] equity stake in Emaar by exchanging land for 28 billion AED worth of stock.[7]

Labor issues[edit]

The UAE has a large population of expatriate construction workers, mainly from India, Pakistan, and the Philippines. With trade unions outlawed, the poor conditions and low wages have brought the UAE some unwelcome headlines.[8][9] In Dubai, the Government has done much to guarantee limited rights to such workers, particularly with regard to ensuring that they are paid on time. However, from time to time, labor disputes, strikes and protests do still occur. With laborers often on a daily wage of around US$8, and the land that Emaar builds its developments on being essentially free, the price of Dubai property seems to be somewhat disconnected from the fundamentals.[10][11][12][13] In July 2010 American businessman Lionel Lombard filed a $61 million lawsuit against Emaar and its Chairman Mohamed Alabbar in a California federal court alleging he had been falsely imprisoned for 2 years and tortured in UAE prisons because he had spoken up on behalf of Emaar foreign workers and alleged Apartheid was being practiced by Emaar.[14] [15]

Joint ventures[edit]

The company has joint ventures and projects across the region covering Algeria, Bahrain, Egypt, France, India, Indonesia, Jordan, Lebanon, Morocco, Pakistan, Saudi Arabia, Syria, Tunisia and Turkey.[16]

Chairman[edit]

Mohamed Ali Alabbar, the Director General of the Dubai Department of Economic Development[17] and Chairman, Emaar Properties, is a member of the Dubai Executive Council, the supreme government body with the mandate to synergise all growth initiatives in Dubai.

UAE Projects[edit]

Downtown Dubai[edit]

Downtown Dubai is Emaar's signature development project. It took a plot of 500 acres (2 km²) that was a former military camp (the nearest roundabout is still called "Defense Roundabout") and planned a complex of mostly residential and retail space, focused on the Burj Khalifa, the tallest tower in the world.[18]

Approximately 80% of the core buildings that make up the Downtown project were complete as of January 2010 when the Burj Khalifa opened. No other new buildings opened during 2010. As at the beginning of 2011, construction had begun on two new residential towers between the Dubai Mall and the Burj Views. In September 2012 Emaar launched The Address The BLVD, a hotel and serviced apartments complex to be built near the Dubai Mall, and to be completed in 2015. The complex will comprise 200 hotel rooms and 542 serviced apartments. On Saturday September 23, 2012 all of the serviced apartments were sold to investors in a matter of hours, after people had camped outside the sales office for 3 days. In January 2013 the company launched The Address Residence Fountain Views, a 280 serviced apartments project also near the Dubai Mall. On January 26, 2013, the first day the apartments went on sale, all the apartments put up for sale by the developer were sold out over the course of 8 hours. There was some criticism over the manner in which Emaar conducted the launch, which angered several hundred potential investors.[19]

The Springs[edit]

The Springs is a waterfront villa development that is built around man-made lakes.

The Springs community

International projects[edit]

Syria[edit]

The Eighth Gate[edit]

Eighth Gate is a joint venture between Emaar Properties and IGO, the offshore investment and property development company. The project is expected to be completed in 6 years. The US$500 million development in the Syrian capital Damascus will introduce the city’s first master planned community and will include mixed use residential, commercial and retail units. The project builds upon the ancient history of Damascus in its architectural style of ornately decorated buildings influenced by traditional Islamic design and pays homage to the city’s ancient roots. A signature tall gate marks the access to the main plaza. Divided into three zones - the Commercial Centre, Waterfront and Residential - the development contains apartments as well as a classical style piazza, commercial tower, plaza and a retail mall inspired by the souks of Damascus as well as high street shopping experiences and al fresco dining out options. Construction on Sales Centre to start at the end of June 2006 and is due to open early 2007. The Eighth Gate retail mall will be the biggest ever in Levant. Eighth Gate office buildings will cover 1,000,000 sq ft (93,000 m2). As part of the first phase, Eighth Gate will introduce more than 200 serviced apartments.

Memorandum of Understanding with the Syrian General Organization for Housing[edit]

On June 11, 2006, Emaar signed a MoU with the Syrian General Organization for Housing to float a new company that will initiate several socio-economic developmental projects in Syria. The incorporation rules for the new company and equity participation of Emaar and the Syrian General Organization for Housing will be decided soon; representation to the board of directors will be commensurate with the equity held. Initially, the new company will roll out, in phases, affordable housing units at different locations across the country, targeting the middle-income segment. Several other socio-economic development projects are planned. The location of the new housing units will be finalized after the master plan and reclamation proposals are approved by the Syrian government. Other development projects will be initiated after social surveys and infrastructure assessment.

Tunisia[edit]

Marina Al Qussor[edit]

With a total investment of US$1.88 billion, Marina Al Qussor will develop Tunisia’s eastern coastline offering a series of environments ranging from natural lakes to golf landscapes and olive groves to the existing El Medfoun forest and sandy beaches. The 4.42 square kilometre Marina development is located within the county of Sousse towards the southern end of the Golfe de Hammamet and will offer a mix of living options and tourist attractions with a large Marina Village at its centre.

Egypt[edit]

Uptown Cairo[edit]

US$4 billion development located at the highest point of downtown Cairo. A residential, commercial and recreation community being developed by Emaar Misr.

Marassi[edit]

Marassi is located on the Sidi Abdel Rahman bay on the Egyptian Mediterranean Coast, with a surface area of 1,544 acres or approximately 6.5 million meter square, and with an investment of EGP 10 billion. It is considered the largest tourist residential project in Egypt and the Arab region as a whole, with a 3 km coastline and a 600,000 meter square private beach.

Mivida[edit]

Mivida is one of Emaar’s projects in Egypt, located in New Cairo 1.8 km away from the AUC new campus, and a 20 minute drive away from the Cairo Airport.

Bibliotheca Alexandrina[edit]

Waterfront redevelopment project for the Alexandrina Bibliotheca (Alexandria Library).

Iraq[edit]

In 2013, Emaar signed a deal with the Iraqi Ministry of Housing for building new residential properties in the country some of them in Erbil north of Iraq where they are developing the city downtown projects .

India[edit]

Emaar MGF Projects[edit]

Emaar MGF has a portfolio of projects in several destinations in India, covering residential, commercial, and hospitality. It is the joint venture of Emaar Properties PJSC with MGF Developments Limited of India.[20] [21][citation needed]

This entity has been caught in various controversies in India and is being investigated by the Enforcement Directorate for foreign exchange violations and by the Central Bureau of Investigation for corruption allegations.[22][23][24][25][26]

Boulder Hills Controversy[edit]

Located in Hyderabad, Emaar’s Boulder Hills Hyderabad development is a leisure and residential community featuring an 18-hole championship golf course, villas, apartments, and a five star resort style hotel. This property is in dispute for land acquisition, survey nos in the dispute is 27/3, 28/3 and more, with the case pending in Indian courts. WP is filed in AP high court and the ownership of the land has been not adjudicated.[27] APIIC has been embroiled in a controversy over land acquisition for the Boulder Hills project and the eventual dilution of public stake from 26% to 4%, by drastically undervaluing the land in the project (see Andhra Pradesh Industrial Infrastructure Corporation, 'EMAAR-MGF Controversy').[28][29] There are also allegations that government officials were allocated parcels of the property at deeply discounted prices compared to the prevailing market price.[30]

Hyderabad International Convention Centre[edit]

Opened in December 2005, the Hyderabad International Convention Centre (HICC) is a convention facility.[31] It was built by Cyberabad Convention Centre Private Limited (CCCPL), a joint venture between the Dubai-based Emaar Properties and the Andhra Pradesh Industrial Infrastructure Corporation (APIIC). Stretching across 15 acres (61,000 m2), the HICC is an integrated 291,000 sq ft (27,000 m2). facility managed by Accor. Located next to the HICC is the Novotel Hyderabad hotel, which opened in May 2006. The 287-room business hotel has also been developed by Emaar, and is managed by Accor. HICC offers 4,000 seating capacity with an in-built flexibility to expand to 6,500 seats. The HICC, built at a cost of US$39 million and the Novotel Hyderabad at a cost of US$27 million together constitute a total project investment of US$66 million. HICC is located adjacent to HITEC City, home to large national and international technology companies. Indian newspapers report investigations into reduction of the public stake in HICC[32][33][34][35]

2010 Commonwealth Games Village[edit]

The controversial 2010 Commonwealth Games Village was built by Emaar-MGF.Post-Commonwealth Games anti-corruption drive by confiscating the Rs.183-crore bank guarantee from Emaar-MGF, builders of the Games Village. Emaar-MGF, however, denied that the bank guarantee was confiscated. Action against Emaar-MGF came a day after the Delhi Development Authority (DDA) came out with findings of irregularities by the builder in the construction of the Village.[36]

Indonesia[edit]

Lombok[edit]

Emaar’s Lombok project spread in over 1,200 hectares in Central Lombok, West Nusa Tenggara, Indonesia and estimated cost US$600 million. It will have a 7 km natural waterfront, which will support a marina, apart from luxury residences and five-star resorts by Ritz-Carlton and Armani.[37] The Lombok resort is planned to have 4 hotels and resorts managed by 4 different label.[38] The Ritz-Carlton will also have a golf course and retail amenities. The homes will employ tropical designs and low-rise architecture in tune with the surroundings.[39] The development will start in April 2008. In January 2012 it was announced that Emaar Hospitality's planned The Address Lombok hotel project due to open in 2015 was indefinitely postponed.[40]

Emaar also expressed their hopes to make a new city in Jakarta.[37]

Emaar's Jakarta Tower[edit]

Emaar Properties plans to build a tower in Jakarta, which would be the tallest skyscraper in Southeast Asia, a presidential envoy says. Emaar is ready to build the tower, but currently they are finding the best place.[38]

America[edit]

Emaar Properties acquired John Laing Homes, the second largest privately held homebuilder in the U.S., creating one of the world’s largest real estate developers in residential homebuilding. The AED 3.856 billion (US$1.050 billion) cash transaction has been unanimously approved by the boards of directors of both companies and closed on June 1, 2006.

US homebuilder John Laing Homes - a subsidiary of Emaar Properties - has sought Chapter 11 bankruptcy protection on Thursday (February 19, 2009)in the US Court for the District of Delaware, due to a sharp decline in home sales. The company listed assets of more than $1 billion (Dh3.678 billion) and debt of $500 million to $1 billion in Chapter 11 documents filed in the Bankruptcy Court in Delaware.

On February 22, 2009 Emaar issued the following statement about John Laing Homes filing for bankruptcy:

John Laing Homes, one of the largest privately held homebuilders in the United States, has announced that it, along with certain of its affiliates, have elected to file Chapter 11 petitions in the US Court for the District of Delaware. John Laing Homes anticipates that the Chapter 11 process will allow it to significantly reduce debt from its balance sheet while facilitating a strategic reorganization of the company, which will place it in the strongest possible position to sustain its momentum despite extremely challenging market conditions.[41]

References[edit]

  1. ^ "2010 Annual Report - Emaar Financials Final 10 March 2011". Emaar.com.
  2. ^ "Emaar Properties PJSC | Company profile from Hoover's | +971-4-367-3333". Hoovers.com. 2010-10-21. Retrieved 2011-11-14. 
  3. ^ a b "Emaar Properties PJSC - Dubai Property Developer - TEN Real Estate [UAE]". Realestate.theemiratesnetwork.com. Retrieved 2011-11-14. 
  4. ^ a b "Emaar". ameinfo.com.
  5. ^ "EMAAR:UH". Bloomberg. Retrieved 17 April 2013. 
  6. ^ "Emaar Properties - UAE - Company Directory". ArabianBusiness.com. Retrieved 2011-11-14. 
  7. ^ Monday, Reuters (2007-03-19). "Emaar to hold 55% more land in Dubai". Arabianbusiness.com. Retrieved 2011-11-14. 
  8. ^ "Human Rights Watch - Building Towers, Cheating Workers: Exploitation of Migrant Construction Workers in the United Arab Emirates". Hrw.org. 2006-11-11. Retrieved 2011-11-14. 
  9. ^ "Human Rights Watch - Building Towers, Cheating Workers: Exploitation of Migrant Construction Workers in the United Arab Emirates - PDF" (PDF). Retrieved 2011-11-14. 
  10. ^ Deparle, Jason (2007-08-06). "New York Times - Fearful of Restive Foreign Labor, Dubai Eyes Reforms". Dubai;United Arab Emirates: Nytimes.com. Retrieved 2011-11-14. 
  11. ^ "Middle East Times - Strike rages on at world's tallest tower in Dubai". Metimes.com. Retrieved 2011-11-14. 
  12. ^ "Arabtec strike deal raises costs 1%". ArabianBusiness.com. 2007-11-12. Retrieved 2011-11-14. 
  13. ^ "Al Jazeera English Burj Dubai owners say strike over". English.aljazeera.net. Retrieved 2011-11-14. 
  14. ^ "Emaar Properties dismisses charges in US lawsuit, Arab News". Arabnews.com. Reuters. 2010-07-13. Retrieved 2011-11-14. 
  15. ^ "Dubai's Emaar faces US wrongful imprisonment case, Reuters". Reuters.com. Retrieved 2011-11-14. 
  16. ^ "emaar properties pjsc (EMAAR:DFM)". Businessweek. Retrieved 23 April 2013. 
  17. ^ "Department of Economic Development". Dubaided.gov.ae. Retrieved 2011-11-14. 
  18. ^ Bianchi, Stefania (2010-01-05). "Burj Dubai Tower Opens - WSJ.com". Online.wsj.com. Retrieved 2011-11-14. 
  19. ^ "New tower launch turns into public relations disaster for Emaar". Middle East Star. 
  20. ^ \ Emaar Mgf
  21. ^ | www.livemint.com
  22. ^ "Why did the law take forever to catch up with Emaar MGF?". The Business Standard. 7 June 2013. 
  23. ^ "ED sends Emaar notice for FEMA violation". The Indian Express. 8 June 2013. 
  24. ^ "India Accuses Emaar MGF of Violating Rules". The Wall Street Journal. 4 June 2013. 
  25. ^ "CBI seeks 25 days to complete probe in Emaar scam". The Hindu. 8 September 2012. 
  26. ^ "CBI digs deep into Emaar MGF, grills MD Shravan Gupta". Moneycontrol.com. 11 November 2011. 
  27. ^ "AP High Court". Hc.ap.nic.in. Retrieved 2011-11-14. 
  28. ^ "APIIC loses prime land in blind deal". The Times of India. 11 August 2010. 
  29. ^ "Acharya's arrest is latest in Emaar's JV hiccups in India". The Business Standard. 1 February 2012. 
  30. ^ Sengupta, Sudipta (13 August 2010). "Babus, politicos got prime Emaar plots?". Times of India. 
  31. ^ "Hyderabad International Convention Centre". Retrieved 2013-12-13. 
  32. ^ "Naidu, YSR cut state's stake in Emaar". Times of India. 16 November 2011. 
  33. ^ "APIIC mum over Emaar's offer". The Hindu. 17 January 2011. 
  34. ^ "CBI charges Emaar with financial irregularities". The Business Standard. 1 February 2012. 
  35. ^ "Emaar names KVP in land scam". Andhra Vishesh. 16 November 2011. 
  36. ^ "Emaar-MGF distances itself from Commonwealth fiasco". Indian Express. 2010-09-24. Retrieved 2011-11-14. 
  37. ^ a b "Tempo Interaktif". Tempo Interaktif. Retrieved 2011-11-14. 
  38. ^ a b Jakarta Post[dead link]
  39. ^ "Emaar Properties expands to Southeast Asia with AED 2.2 billion project in Indonesia’s pristine Lombok Island" (Press release). Emaar. April 20, 2007. Archived from the original on 2007-05-03. Retrieved 2011-11-14. 
  40. ^ Birchall, Louise (6 February 2012). "Emaar's hotel unit postpones France, Indonesia plans". Arabian Business via Arabianbusiness.com. Retrieved 7 February 2012. 
  41. ^ "John Laing Homes Statement" (PDF). DFM.ae. Dubai Financial Market. February 22, 2009.

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