Emaar set to distribute Dh4 billion dividend

dubai - Developer will share proceeds of the recent Emaar Development IPO

Emaar Properties announced on Tuesday that it would distribute Dh4 billion of special dividend to shareholders from the proceeds of the recent Emaar Development IPO that successfully raised  $1.3 billion.

Emaar's board of directors, which met on Tuesday, decided to pay Dh3 billion to shareholders in January 2018 and Dh1 billion in April 2018.

"The board considered the funding and cash requirements of the company in light of the ongoing development of large projects and approved the proposal to distribute special dividends of Dh4 billion to shareholders," the developer said in a statement.

The board will hold a general assembly meeting on January 14 to approve the proposal.

Emaar Development IPO, the largest since the Emaar Malls IPO that raised $1.58 billion in 2014, is listed on the Dubai Financial Market.

Emaar Development has sold 80 per cent of its units under development as of September 30, with an average gross profit margin of 41 per cent for units sold, and an associated sales backlog of Dh41 billion.

Over the next five years, Emaar Development plans to launch approximately 50,400 units with an average annual unit sales target of 10,000 units and a targeted overall gross profit margin of 40 per cent.

- issacjohn@khaleejtimes.com