JEDDAH, 4 June 2006 — Dubai-based Emaar Properties, one of the world’s largest real estate companies, will buy John Laing Homes, the second largest privately held homebuilder in the US. This will create one of the world’s leading real estate developers in residential homebuilding. The AED 3.856 billion ($1.050 billion) all-cash transaction was unanimously approved by the boards of directors of both companies and was closed on Thursday.
Mohamed Ali Alabbar, chairman of Emaar, said: “His Highness Sheikh Mohammed ibn Rashid Al-Maktoum, vice president and prime minister of UAE and ruler of Dubai has been instrumental in Emaar’s successful regional and global expansion strategy. This transaction forms part of his overall vision to strengthen Dubai and its successful companies in international markets. His visionary leadership, drive for success and relentless courage to take on the future and make it his own have been instrumental to Emaar’s pace-setting progress. Partnering with John Laing Homes is consistent with our strategy of expanding our business on a global basis beyond Dubai. This agreement will provide Emaar with an important gateway into the US real estate market.”
Emaar has joint ventures and projects across the region covering Saudi Arabia, Egypt, Turkey, Morocco, Bahrain, Syria, Jordan, Pakistan, Lebanon, Tunisia and India. Major international projects include: Cairo Heights and Smart Village, both in Egypt; Boulder Hills, a world-class leisure and residential community in Hyderabad, India; multiple resort projects in Morocco, including Amelkis II & III and Bahia Bay, luxury residential golfing communities; Eighth Gate project in Damascus, the city’s first master planned community; and Lakeside in Istanbul, a landmark development for Turkey’s cultural and commercial hub.
In Saudi Arabia, Emaar is embarking on the creation of the AED100 billion ($26.6 billion) King Abdullah Economic City (KAEC), a mixed-use development covering 55 million square meters of greenfield land with a 35 km shoreline in Rabigh, north of Jeddah.
Emaar has several major real estate projects under various stages of development in Dubai including Arabian Ranches, Dubai Marina, Emirates Hills, The Views, The Meadows, The Springs, The Lakes and The Greens. The company also owns and manages the Gold and Diamond Park.
About the John Laing deal, Alabbar said: “John Laing Homes is a highly-respected partner with more than 150 years of homebuilding experience, and boasts a strong and knowledgeable management team. Emaar will leverage John Laing’s industry and management expertise and export it into markets around the world, while providing John Laing Homes with additional resources to grow.”
Emaar is known for its signature projects, including the construction of the Burj Dubai, which will be the tallest building in the world upon completion in 2008. With the company’s scale and financial strength, Emaar has been a pioneer in driving growth in its regional real estate markets. Emaar also has an agreement with Giorgio Armani to develop an international chain of luxury Armani hotels and resorts around the globe, starting with the development of ten hotels. The first hotels will be built in Milan and Dubai, followed by London, New York, Tokyo and other major global gateway cities.
“We are very excited by this partnership,” said Larry Webb, CEO of John Laing Homes. “John Laing Homes and Emaar have much in common, with a similar vision and values. Like Emaar, we strive to deliver world-class customer service, and we are recognized for it, being named America’s Best Builder 2006 by Builder magazine.”
John Laing Homes will be operated as a division of Emaar. John Laing Homes’ corporate headquarters will remain in Newport Beach, California, and continue to be managed by Larry Webb, who, along with the senior management team, have agreed to multiyear contracts.
On April 17, 2006 Emaar filed voluntarily with the Committee on Foreign Investment in the United States (CFIUS), which has approved the transaction.
Emaar recently announced that its net profits for the first quarter ended March 31, 2006 reached AED1.517 billion ($413.1 million).
