Emaar Bullish About Indian Real Estate

Dubai, March 24: UAE Property major Emaar Properties has said that it will reconsider its initial public offering (IPO) in India “when the time is right” though the company is bullish about the Indian real estate market.



In February, Emaar MGF withdrew its IPO for lack of adequate response. The company wanted to raise around Rs 6,500 crore on the initial price band of Rs 610-690. This was twice revised to Rs 530-630 and the closing date extended to February 11 from February 6.



“India will be one of our largest operations and we have long-term plans there. The Economy is doing well and we see a bullish story for the next 20 to 25 years,” chairman Mohamed Ali Alabbar told the annual general meeting (AGM) of the company.



“We would go to public at the right time. We are cash rich and we may even double our size,” he was quoted as saying by the Emirates Business daily.



Alabbar said the Indian and Morocco operations had contributed between Rs 1,647-2,197 million to the firm’s profit and loss account in the last quarter of 2007.



India has recently been ranked among the three hottest regions for property growth in the Asia-Pacific region over the next five years with Mumbai registering rental growth of more than 50 per cent over the year, according to law firm Allens Arthur Robinson.



Emaar’s current land bank stands at 519 million square metres, more than twelve times of the area in 2005.



The fair value of the land increased by 74 per cent from Rs 747 billion in 2006 to Rs 1,296 billion by 2007 end.