Emaar Properties
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| Emaar Properties Logo | |
| Company type | Real Estate (DFM: EMAAR) |
|---|---|
| Industry | Holding company |
| Founded | 1997 |
| Headquarters | Dubai, United Arab Emirates |
| Revenue |  $3.307 billion (2010)[1] |
| $674.383 million (2010) | |
| Total assets | 112,751,930,000 United Arab Emirates dirham (2017)  |
Number of employees | 10,000[2] |
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,[4][5] 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.[6] In 2007, the government of Dubai, through the Investment Corporation of Dubai, took a 32%[4][5][7] equity stake in Emaar by exchanging land for 28 billion AED worth of stock.[8]
In the UAE
With more than 14,000 homes, Emaar has several major real-estate projects under various stages of development in Dubai. The company also owns and manages the Gold and Diamond Park.
Emaar started construction on its most ambitious project to date on 1998, the AED 73 billion (US$20 billion) Burj Khalifa Downtown development, which comprises the Burj Khalifa - the tallest tower in the world when completed in 2009, the Dubai Mall, Burj Khalifa Business Hub, The Lofts, The Old Town, The Old Town Island, Burj Khalifa Boulevard, The Residences, Burj Views, man-made lakes, landscaped parks and gardens.
Located in the Burj Khalifa, Armani Hotel and Residences Dubai includes 160 guest rooms and suites, restaurants and a spa covering more than 40,000 m². Above the hotel are 144 luxury residential apartments.
Emaar also owns several blocks of apartments in the Greens, as well as villas in the Lakes which are rented to tenants. However, the Dubai Government's rent cap laws have fixed rents at up to 50% below the prevailing market level. In early 2007, Emaar contacted Greens rental tenants informing them that they had two weeks to agree to purchase their apartment at the market rate, or it would be sold on the open market [citation needed]. Despite initial denials by Emaar, a similar ultimatum was given to Lakes tenants shortly afterwards [citation needed].
Labor issues
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.[9][10] 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.[11][12][13][14] 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.[15] [16]
Joint ventures
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.[17]
International projects include: Cairo Heights in Egypt; Boulder Hills, a leisure and residential community in Hyderabad, India; multiple resort projects in Morocco, including Amelkis II & III and Bahia Bay, residential golfing communities; Eighth Gate project in Damascus, the city’s first master-planned community; and Lakeside in Istanbul.
In Saudi Arabia, Emaar is embarking on the creation of the AED 98 billion (US$26.6 billion) King Abdullah Economic City, a mixed use development covering 55 million square metres of greenfield land with a 35 km shoreline close to the port city of Jeddah.
Expansion plans
Emaar Properties announced plans to expand the retail sector with investments of over AED 15 billion (US$4 billion) to develop approximately 150 malls in the larger emerging markets of the Middle East, North Africa (MENA) and the Indian subcontinent.
While continuing to expand its core business of real estate development, Emaar has diversified into related business. Emaar is an equal shareholder in Emrill Services LLC as a tripartite joint venture with the UK-based Carillion and Al-Futtaim Group, which provides property and facilities management services across the UAE. Emaar also holds 30% equity in Dubai Bank, focused on retail and commercial banking and is the majority shareholder in Amlak Finance, UAE’s leading Islamic home financing company.
However, the financial crisis and the unfavorable economic conditions make it unlikely that Emaar would proceed with its previously announced expansion plans. Difficulties in access to financial resources, both in capital market and bank loans, were noted.
Chairman
Mohamed Ali Alabbar, the Director General of the Dubai Department of Economic Development[18] 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.
Alabbar is a founder member of the Arab Business Council, established by the World Economic Forum. Euromoney Magazine named him one of five prominent Arabs in only 50 global economy leaders, while Advertising Age selected him as one of the International Marketing Superstars of the Year (1996). Arabian Business magazine, in 2006, ranked Alabbar sixth among top 50 most influential Arabs.
A graduate in finance and business administration from Seattle University, USA (1981), Alabbar initially worked with the UAE Central Bank, before establishing his presence internationally with a five-year stint as Director and General Manager of the Dubai Government-owned Al Khaleej Investments in Singapore.
In 1982 Alabbar set up the Department of Economic Development to create public policies to strengthen the trade and business segments of Dubai and encourage a culture of transparency. He also formulated the Dubai Quality Award and the Dubai Shopping Festival and Dubai Summer Surprises. Alabbar has served as Vice Chairman of Dubai Aluminium Company Ltd (DUBAL) and Dubai World Trade Centre (DWTC).
Alabbar spearheads Emaar’s international expansion into the emerging markets of Saudi Arabia, Morocco, Egypt, Syria, Jordan, Lebanon, Turkey, Tunisia, India and Pakistan. A recent high-profile venture was the launch of the AED 97.7 billion (US$26.6 billion) King Abdullah Economic City, the single largest private sector investment in Saudi Arabia [citation needed]. Emaar is fast-tracking a plan to diversify into sectors such as education, healthcare, finance, hospitality and retail [citation needed]. Alabbar also joined with Giorgio Armani to set up a chain of around 30 luxury hotels and resorts under the Armani brand name in key international cities – starting with Milan and Dubai.
Alabbar is the Chairman of RSH Ltd., a Pan-Asian marketer, distributor and retailer for branded sports, golf, active lifestyle and fashion products with a turnover of AED 1.281 billion (US$348.86 million). He is also a joint venture partner with Tan Sri Syed Mokhtar Al-Bukhary in the Gulf International Investment Group (GIIG) for a range of projects in Asia and the Middle East.
Alabbar is the Chairman of the UAE Golf Association, and has been instrumental in putting Dubai on the global sports map through his involvement with the annual PGA-level Dubai Desert Classic golf tournament. He was named among the top ten golfing personalities in the world by Golf World. He is also Chairman of the Rashid Paediatric Centre, a charity organisation for children with special needs, and works closely with Arab NGOs to creating employment and develop small businesses.
The Dubai based newspaper 7days has recently been banned from Emaar properties after criticizing the Emaar board of directors [citation needed].
UAE Projects
Downtown Dubai
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.[19] Immediately adjacent to the Burj Khalifa is the Dubai Mall, the world’s largest shopping and entertainment complex, and nearby are the Burj Residences (nine high-rise apartment towers), Old Tow Island and Old Town (two low-rise residential communities inspired by Dubai's original buildings). Other nearby residential complexes include Southridge, the Lofts, and the Burj Views.
Hotels in the area include The Address Downtown and The Address Dubai Mall, both of which are managed by Emaar Hospitality, and the Al Manzil Hotel, the Qamardeen Hotel, and the Ramada Dubai. The Emaar Square is the only office commercial district, and is at the northern corner of Downtown.
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.[20] The current Downtown has deviated from the announced master plan, while a revised master plan has not been published.
Arabian Ranches
This multi-billion dirham desert development is spread over thousands of acres and includes an 18-hole championship course designed by Ian Baker-Finch and Nicklaus Design, a polo ground and an equestrian centre. The development contains a variety of homes and landscaped areas (though the homes themselves must be landscaped by the owner).
Emirates Hills
Emirates Hills is a master planned community and allows nationals and foreigners to purchase land to build their own properties.
The Lakes
The Lakes is a residential suburb built around a lake and located near to the Emirates Golf club and Greens development. Initially the properties in The Lakes were only for rent, but in 2007 Emaar offered freehold titles to the properties, with first refusal granted to current tenants.
The Views
The Views apartments offer aspects of the Emirates Golf Club and nearby lake.
The Greens
The Greens has mid-rise apartment blocks. Recreational facilities include swimming pools, gymnasiums, children’s play areas and outdoor dining areas and a nearby retail centre.
The Meadows
This is a premium villa project offering double-storied villas of three to seven rooms, each surrounded by a garden and garage.
The Springs
The Springs is a waterfront villa development that is built around man-made lakes. First occupied in 2004, typically several villas share a communal pool area. Properties range from two to five bedroom townhouses. The majority of residents are western in outlook.[citation needed] The Springs is located close to The Greens, Lakes and Meadows.
Dubai Marina
A large man-made marina surrounded by tower blocks up to 100 stories high, and located midway between Dubai city and Jebel Ali port, close to Dubai Internet City, Media City and Knowledge Village.
Umm Al Quwain Marina
A master-planned waterfront community offering more than 9,000 homes to be spread over 1,488 acres (6 km2). The 2,600 residential villas and 6,500 apartments will be either waterfront or beachfront. Some of the waterfront villas will be built on a large island with gated access. Smaller islands will offer luxury villas. The project will also have 1,200 resort and hotel rooms as well as parks, recreational areas, retail facilities, schools and community centers.
International projects
Emaar has joint ventures and projects across the region covering Algeria, Egypt, India, Indonesia, Morocco, Pakistan, Saudi Arabia, Syria, Turkey, Tunisia, and Iraq.
Recently Emaar announced plans to expand the retail sector with investments of over US$4 billion to develop approximately 150 malls in the mega emerging markets of the Middle East, North Africa (MENA) and the Indian subcontinent.
Emaar has also made moves internationally with the acquisition of America’s “best builder” John Laing Homes for US$1 billion [citation needed]. The partnership with John Laing Homes is a reiteration of Emaar’s strategy of expanding its business on a global basis beyond Dubai.
In addition, Emaar has teamed up with Giorgio Armani to build and manage 10 Armani hotels and resorts across the world; an Armani hotel will feature in Emaar’s flagship Burj Khalifa tower and other locations will include Milan, London, Shanghai, New York and Tokyo.
In January 2006, the company announced plans to expand its investments into the education business within the MENA region and India. The initiative will involve the establishment of international schools in the MENA region and India offering education and an integrated curriculum for students ranging from kindergarten to tertiary levels. Emaar has already set up partnerships with internationally renowned education specialists[who?] and finalized the acquisition of existing institutions.
Emaar’s healthcare initiative, launched in March 2006, will initially be focused on the MENA and South Asia markets. Emaar’s plan involves the construction of hospitals, clinics and medical centres and investing in the provision of world-class healthcare services. With a total investment outlay of around US$5 billion over the next decade, Emaar aims to develop and manage around 100 hospitals each with 200-bed capacities and medical specialities in key centres. Emaar will provide the infrastructure as well as manage the administration and operations of the hospitals, clinics and medical centres [citation needed].
Saudi Arabia
Emaar is the master developer of this project and SAGIA (Saudi Arabian General Investment Authority), the apex body responsible for inward investments into the Kingdom, is the prime facilitator for the development and will act as the one-stop Government servicing centre for the City. The location of the City, north of the commercial hub of Jeddah, provides access from the Holy Cities of Makkah and Madina.
The City will create six distinctive components: Seaport, Industrial District, Financial Island, Educational and Healthcare Zone, Resort, and Residential. Facilities within the City include a Grand Mosque, community centres, parks and recreational areas, shopping and commercial centres and schools. The project and its several components will create up to 500,000 employment opportunities in the various industries and service-oriented companies that will open in the City [citation needed].
Emaar Middle East (“EME”), is a joint venture between Emaar Properties and Al Oula Real Estate Development Company. EME has embarked on the development of various high value projects in the Kingdom of Saudi Arabia.
Emaar Middle East Projects
- Jeddah Gate
- Khobar Lakes
- Emaar Residences at Fairmont Makkah in Abraj Al-Bait (via Manarat Al-Manzil)
- Um Al Quwain Marina
Jeddah Gate is a master-planned mixed-use project spread over half a million sq m in Jeddah's new downtown. The SR 6 billion project will serve as a centre point for the city's new downtown.
Jeddah Gate has two key sites: The first is located along King Abdullah Road and has an area of 413,0000 m², and the second is located along Abdullah Al Suleiman Street and spread over 140,000 m². It is close to the main railroad linking the two Holy Cities of Makkah and Madina to Jeddah. In all, the project will have residential and serviced apartments; office space and gross leasable areas for retailers. The project is envisaged as a ‘Smart City’ with advanced telecom infrastructure that uses modern fibre optics technology.
The following phases were launched in Jeddah Gate:
Abraj Al Hilal, Design Architects: SB Architects
- 3 high rise residential towers ranging from 19 to 22 storeys
Burj Al Aamal
- The first business tower in “Jeddah Gate”
- 27 floor smart tower that offers luxury open office spaces for sale or rent
- Situated within the commercial center alongside King Abdullah Road, close to JCC, governmental organisations, major banks and Jeddah Islamic Port
Al Khobar Lakes is an integrated master plan community with a development value of 4.6 SR billion that spreads over (2.643.84 m²). It has a prominent location as it is situated about 12 km to the east from the center of Al Khobar and 43 km (around 25 minutes) from King Fahd International Airport, at the interchange of two marked freeways, the southern freeway connecting Khobar with Dammam (Abqiq Dhahran Freeway) and the western Freeway connecting Khobar with Riyadh (Abu Hadriyah Freeway). The site is also about 25 km away from Bahrain Causeway.
Al Khobar Lakes is the first gated community available for sale as private villas; it comprises more than 2000 villas in a series of 9 villages with retail and leisure amenities. It also features 6 lakes with (80,000 m²) of serene water bodies[clarification needed] that spread over the villages, with (104,208 m2) wide areas of greenery and parks.
Syria
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
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
Marina Al Qussor
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. The architectural character of the development is based on numerous distinctive traditional Tunisian elements from building techniques to styles and materials. The development will include villas, townhouses and apartments located on the lakeside, beach, marina and quayside; six hotels ranging from luxury boutique to four star located on the beach and marina; leisure facilities with the marina, yacht club, beach clubs, spa resort, sports club, 18-hole golf course, clubhouse, driving range; and retail space located on the marina and quayside.
Turkey
Lakeside
Lakeside project is a joint venture between Emaar Properties, and Atasay, Turkey’s largest gold jewellery exporter. It will be a landmark development valued at US$700 million in Istanbul, the cultural and commercial hub of Turkey [citation needed]. The project is located in the western part of Istanbul, just 20 kilometres from Atatürk International Airport and 50 minutes from the city centre, covering 1.7 million square metres. The development will introduce the master planned community concept to the ancient city and will include 600 luxury villas, recreational and social spaces for residents as well as a wide range of community amenities. The initial investment figure of US$700 million will be followed by a further US$5–10 billion over the next few years. In addition to Lakeside, Emaar and Atasay are also currently focusing in identifying potential sites for shopping centres, commercial space and hotels developments.Emmar also planning to invest on new project around about US$15 billion on the new big mall in turkey.
Egypt
Uptown Cairo
US$4 billion development located at the highest point of downtown Cairo. A residential, commercial and recreation community being developed by Emaar Misr. Stretching over the Mukattam suburb, the development will be a magnet for the capital’s trendsetters. Each of the Cairo Heights district’s seven communities will offer a variety of residential buildings ranging from low-rise on the hillside to medium rise – three to 22 storeys further down the slope. The borders of each village will be defined by interior loop roads, though they will be integrated into residential neighbourhoods with internal roads and pedestrian walkways linking the village centres. The new district will include a central town centre, an owner’s private clubhouse, hotels, restaurants, cafes, schools, swimming pools, healthcare facilities, retail centres and mosques.
Marassi
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. The project features Armani designed villas, the first of its kind, in addition to seven different International hotels including the Sidi Abdel Rahman hotel, which is currently managed by Emaar Hospitality. Marassi also includes residential units of different sizes and designs as well as commercial units, and the project also features the biggest Yacht Marina in the region with an investment of EGP 1.5 Billion.
Mivida
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. Mivida was fully launched in 2009, with an investment of EGP 5.75 billion and a surface area of 3.8 million square meters. Mivida features 5,000 residential units designed by the finest international engineers and designers, and the project to be similar to the model of Santa Barbara in USA. The project also features a central park with a surface area of over 30 acres, in addition to 222 acres of small parks and landscape. Mivida also offers fully integrated facilities including sports clubs, commercial and shopping malls, international schools, medical health centers and luxurious hotels.
Waterfront redevelopment project for the Alexandrina Bibliotheca (Alexandria Library). Memorandum of Understanding signed between Emaar Misr for Development S.A.E., a subsidiary of the UAE-based Emaar Properties and Artoc Group for Investment and Development. Project components are to include conference and exhibition facilities, four- and five-star hotels, serviced apartments, exhibition space, office parks, museums and cultural buildings, aquarium and retail space. Emaar Misr given long-term lease for a period of 60 years to operate the project.
Iraq
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 .
Pakistan
Memorandum of Understanding with Port Qasim Authority
In May 2006, Emaar signed a MoU with Pakistan’s Port Qasim Authority for mixed use land development in Karachi. The agreement was signed by Emaar Chairman Mohamed Ali Alabbar and Senator Babar Khan Ghauri, Minister for Ports & Shipping in the presence of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, Pakistan's President Pervez Musharraf and Prime Minister Shaukat Aziz. The landmark development will consist of residential and commercial components, retail and leisure facilities besides hotels and lifestyle amenities including parks and water features. The development will also feature an 18-hole golf course that will house residences on its perimeter.
In September 2006, the government of Pakistan gave Emaar the go-ahead for a $43bn (£22.8bn) project to develop two island resorts in Bundal and Buddo Islands.
Highlands and Canyon Views, Islamabad
Launched on May 31, 2006 as part of a US$2.4 billion investment in Pakistan by Emaar. With 1,500 acres (6 km²) between them the two Islamabad communities offer 9,000 single-family town homes and villas in a range of architectural styles with amenities including retail centres, community club houses, parks, lakes, schools and mosques. The Highlands development is located within the Defense Housing Authority Islamabad (DHAI) Phase 1 extension and Canyon Views is within the DHAI Phase 2 extension. Offering approximately 50 separate community districts with its own individual identity, a spectrum of architectural styles ranging from Mediterranean, Tuscan, Mughal, Arabic and Spanish, will be available. The master planners for the two projects are WATG, RNL and JZMK. Architects are Mazen N. Issa, Alexandra Hayes, Bassenian Lagoni and Saunders + Wiant Architects of Newport Beach. The projects are expected to be completed in the next four to five years.
Canyon Views Villas project is proposed to be completed by December 2008. The communities will be designed with facilities such as Swimming pools, gymnasium, sports amenities, and running track.
Launched on May 31, 2006 as part of a US$2.4 billion investment in Pakistan by Emaar. Crescent Bay is a 108-acre (0.44 km2) development featuring high- and mid-rise towers for residential and commercial use, a shopping centre and five-star beachfront hotel. The towers will contain approximately 4,000 residential apartments. Crescent Bay is located within Karachi’s DHA Phase 8 and close to the DHA golf course.
Sheikh Zayed Center, Lahore
Sheikh Zayed Center Lahore will have 3 residential apartment buildings of 20-25 floors each, professionally managed by Hyatt Residency. The main tower will also host a 5-star Grand Hyatt Hotel, the largest reception(marriage)/conference halls in the country, plus offices for Multi-National Companies and Large Local Private and Public Corporates. There will also be residential suites in the main tower, managed by Hyatt Residency. Also, parking space will be provided for over 4,000 cars and Zayed Centre will be connected to the Gaddafi Stadium Sports Complex by a covered, over-head bridge
India
Emaar MGF Projects
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.[21] [22] [citation needed]
Since its inception in 2005, Emaar MGF has invested in real estate development with a pan-India presence and operations spanning all key segments of the Indian real estate industry, including residential, commercial, retail and hospitality sectors.
Emaar MGF operations cover various aspects of real estate development, such as land identification and acquisition, project planning, designing, marketing, and execution. At present, its focus is on the development of residential projects in Delhi NCR (particularly Gurgaon), Mohali, Chennai, Hyderabad, and other key Indian State Capitals/Cities. The company has large land bank/reserves with planned development spread over several million sq ft.
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.[23][24][25][26][27]
Boulder Hills Controversy
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.[28] 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').[29][30] There are also allegations that government officials were allocated parcels of the property at deeply discounted prices compared to the prevailing market price.[31]
Hyderabad International Convention Centre
Opened in December 2005, the Hyderabad International Convention Centre (HICC) is a convention facility.[32] 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[33][34][35][36]
2010 Commonwealth Games Village
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.[37][38]
2010 Commonwealth Games Village
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.[37]
Indonesia
Lombok
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.[39] The Lombok resort is planned to have 4 hotels and resorts managed by 4 different label.[40] 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.[41] 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.[42]
Emaar also expressed their hopes to make a new city in Jakarta.[39]
Emaar's Jakarta Tower
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.[40]
Emaar's Jakarta Tower is different with the on-hold GKBI Jakarta Tower.
America
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. John Laing Homes said in court documents that it is exiting operations in Colorado, Texas and Arizona and plans to focus on its flagship homebuilding and luxury units in Southern California.
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.[43]
References
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- ^ "Emaar Properties PJSC | Company profile from Hoover's | +971-4-367-3333". Hoovers.com. 2010-10-21. Retrieved 2011-11-14.
- ^ "Emaar". Dubai Financial Market, United Arab Emirates.
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