Dubai's Emaar to sell view from world's tallest tower
Dubai
EMAAR Properties is selling the observation decks of the world's tallest skyscraper the Burj Khalifa, four sources said, potentially raising US$1 billion for Dubai's biggest developer amid a real estate downturn.
Two of the sources said Emaar had appointed Standard Chartered to advise it on the sale of the popular "At The Top" tourist attraction.
Both Emaar, in which the Dubai government has a minority stake of 29.2 per cent, and Standard Chartered declined to comment.
At over 828 metres, the Burj Khalifa is twice as tall as New York's Empire State Building and nearly three times the height of the Eiffel Tower in Paris. At The Top is a popular tourist destination in Dubai, which attracted 15.92 million overnight visitors in 2018.
The viewing decks make about 600-700 million dirhams (S$221.5-S$258.4 million) a year, a banking source said. A financial source estimated they could be worth around US$1 billion.
The sales process began in November, both of these sources said, declining to be named as the deal is not public.
Dubai is a regional hub for tourism, foreign trade and business services, but has faced a slowing real estate market for most of the decade. It set up a real estate planning commission in September to regulate projects and avoid competition between semi-government and private firms.
Emaar has been divesting hospitality related assets to finance existing operations and expansion, an industry source and a Dubai-based banker said.
Emaar hired Standard Chartered earlier this year for the sale of its district cooling business, and last year for the disposal of five hospitality assets, which were sold to Abu Dhabi National Hotels. REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
DBS puts 46 retail units, HDB shops on market for S$210 million
US mortgage rates jump above 7% for the first time this year
Far East Shopping Centre back on market at unchanged S$928 million asking price
London mansions sold at 30% discount spell gloom for luxury market
Delfi Orchard up for collective sale at S$438 million guide price
US existing home sales drop in March; median price increases