Dubai’s Emaar Properties has paid $US1.05 billion cash for America’s second largest private developer, John Laing Homes.
Last year, the 150-year-old John Laing Homes Group sold more than 2800 homes and apartments with its revenue topping $1.6 billion for the financial period. The group is based in Newport Beach, California, and has more than 1000 employees.
In a prepared statement, Emaar Properties said the Dh3.85 billion ($1.05 billion) all-cash transaction has been unanimously approved by the boards of directors of both companies and closed on June 1, 2006.
Chairman of Emaar, Mohamed Ali Alabbar, said that His Highness Sheikh Mohammed bin 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,” he said.
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 U.S. real estate market.”
Alabbar added that 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.”
In addition to driving much of the commercial and residential development in Dubai, Emaar currently has real estate operations in 12-plus markets around the world, including India, Egypt, Turkey, Morocco, Syria, Pakistan and Saudi Arabia.
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,” John Laing Homes chief executive Larry Webb said.
“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.
By Ted McDonnell
