Middle East Realty Giant Emaar Bullish about Indian Real Estate

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 trend in 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 meters, 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.

Photo: Emaar Square Mall main entrance at night, Istanbul by Kutlusafa, licensed under CC BY 4.0, via Wikimedia Commons.