Emaar will develop projects in partnership with Dubai Holding’s real estate subsidiaries, such as Sama Dubai and Dubai Properties.
One of the first ventures is understood to be with Sama Dubai for part of its Lagoons development in the Ras al-Khor area. Another is expected to follow soon with Dubai Properties.
The joint venture companies follow the creation of a AED60bn ($16bn) venture by Emaar and another Dubai Holding subsidiary, Bawadi, in October last year to develop 5.5 million square metres (sq m) of land in Dubailand.
Under the terms of the agreement, the two companies will construct a 1.5 million sq m theme park, business zones with a total of 250,000 sq m of commercial space and 300,000 sq m of shopping malls, as well as other retail property projects.
A central boulevard will be lined by six hotels.
Bawadi will contribute 7 million sq m of land, valued at AED3.9bn, while Emaar will contribute AED3.9bn to finance the project. The deal increases Emaar’s landbank in Dubai by 76 per cent to 15 million sq m (MEED 26:10:07).
Prior to the agreement, Emaar planned to issue 2.4 billion new shares to Dubai Holding in exchange for land in Dubai, but that deal was scrapped after the companies decided it would not be in the best interests of Emaar shareholders (MEED 28:8:07).