Emaar ‘may seek near-term debt refinancing’
Dubai, October 5, 2011
Emaar Properties may refinance some of its debt in the near term, with repayments worth Dh6.7 billion ($1.8 billion) coming up between the second half of 2011 and next year, investment bank Rasmala said on Wednesday.
The builder of the tallest tower, the Burj Khalifa, is expected to incur a capital expenditure of Dh2.6 billion on its projects and operating expenses of Dh2.9 billion for the same period, the Dubai-based investment bank said.
Emaar will generate Dh7.7 billion cash from its operations during the period but will have a cash requirement of about Dh12.2 billion, the bank said.
The report said the developer's refinancing requirement will be around Dh1 billio.
Rasmala also cut the target price for Emaar to Dh3 a share from Dh3.5 as it expected international handover of projects to be slow due to uncertain global macroeconomic environment.
The developer is using four of its shopping malls including the Dubai Mall as collateral for an $800 million two-tranche loan, banking sources told Reuters last week.
Emaar saw an 85 per cent fall in its income from apartment sales in the second quarter, as demand for real estate continues its slump in the emirate. – Reuters