Emaar-Bawadi deal

By staff writer  www.arabianbusiness.com

Emaar Properties has formed a joint venture with Tatweer’s Bawadi to develop a US $16 billion (AED60 billion) project as part of Bawadi’s massive hospitality development in Dubailand.

Bawadi

Bawadi will contribute 6.5 million m2 of land worth $1 billion towards the deal, while Emaar will invest $1.05 billion, which replaces a land-for-stock deal the company scrapped in August after investors drove its shares to a 28-month low because they were kept in the dark about the details.

A board that will have equal representation from both Emaar and Bawadi will govern the joint venture. Its chairman will be appointed by Emaar, and managed by the company through a management and technical services agreement.

The project will be made up of commercial, retail and residential components and will include six hotels along with a theme park.

Masterplanning is expected to be completed in six months, with construction beginning soon after.

“Bawadi is a flagship development for Tatweer. By sharing synergies and resources from both Bawadi and Emaar, the new joint venture will strengthen the hospitality, leisure and residential infrastructure of the project, and give further impetus to tourism growth in Dubai,” said Saeed Al Muntafiq, executive chairman of Tatweer.

Emaar’s partnership with Bawadi will see the developer increase its land bank in Dubai by 76% to 15.05 million m².

The Bawadi project, which is valued at $54 billion, is expected to become the longest hotel strip in the world. Being 10km long, the development will accommodate 51 hotels.