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Abu Dhabi, UAESaturday 15 December 2018

Emaar Developments appoints former Nakheel boss as CEO

Subscription opens Thursday for 800 million shares in Emaar's real estate development arm

Emaar Development will open subscription for its IPO on November 2. Chris Ratcliffe / Bloomberg
Emaar Development will open subscription for its IPO on November 2. Chris Ratcliffe / Bloomberg

Emaar Development, a unit of the UAE’s biggest listed developer Emaar Properties whose initial public offering (IPO) will open for subscription Thursday, has appointed former Nakheel top boss Chris O’Donnell as its chief executive, the company said on its website.

Mr O’Donnell was the chief executive of Nakheel during the 2008 property crash, which forced the developer behind Dubai’s Palm Jumeirah project to seek a Dh60bn financial ­restructuring.

He left the company in 2011 and took up the position of the president of Al Futtaim Real Estate Group and successfully sued state-controlled Nakheel for more than US$3 million for breach of contract.

Sunil Grover, formerly of Emaar Properties, has been ­appointed the chief financial officer.

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In addition John Carfi, ­formerly the chief executive of residential development at Australian developer Mirvac, will be joining the company as chief ­executive of development and projects.

Emaar Development, the real estate development arm of Emaar, opens subscriptions Thursday for its 20 per cent share float to retail and ­qualified investors, the first ­significant equity capital ­market deal to hit the Dubai Financial Market (DFM) since late 2014.

The company’s IPO, the first major addition to the DFM trading platform since that of DXB Entertainment, which was at that time known as Dubai Parks and Resorts.

It is expected to be similar in size to that of the $1.58 billion flotation share sale of Emaar Malls in 2014, it said in an ­October bourse filing.

Retail investors will be able to subscribe to 10 per cent of the share on offer , with the ­remaining 90 per cent reserved for institutional investors, ­including 40 million shares for the Emirates Investment ­Auth­ority.

Dividends from the offering will be distributed to investors in January, Emaar said in a statement last month.