Emaar Properties and Meraas Holding are to jointly develop the first phase of the multi-billion-dollar Mohammed Bin Rashid City in Dubai; a project the emirate hopes will further revitalize its property market.
Dubai Hills Estate, a mixed use development with an 18-hole golf course, will be set on prime land spanning over 2,700 acres located near Downtown Dubai, the two companies said in an emailed statement. They didn't provide any financial details of the joint venture or the project's value.
Dubai launched Mohammed Bin Rashid City, or MBR City, a mega tourism and retail complex, late last year as its economy picked up on the back of stronger trade and tourism and amid signs of a recovery in its real estate market.
But several analysts and observers have questioned the spate of new real estate projects that debt-laden Dubai has announced recently even as oversupply woes remain.
"Our joint venture with Emaar Properties to develop Dubai Hills Estate will bring incredible value to the property sector of Dubai and the city's economy," Abdulla Al Habbai, the group chairman of Meraas, said in the statement.
Meraas is a company linked to the ruler of Dubai, while the Investment Corporation of Dubai, a government-owned investment vehicle, owns a 31% stake in publicly traded Emaar , according to Zawya.com.
Emaar, in a separate statement posted on the Dubai bourse website, said it's also in the final stages of negotiation with Dubai Holding, another company owned by the ruler of Dubai, to jointly develop a 6.5-million square meters Dubai Creek Harbor project in MBR City. It didn't provide any other financial details.
Dow Jones Newswires