New Delhi: Indian real estate firm Emaar MGF, a joint venture between Indian financier MGF and the UAE’s Emaar Properties said on Friday the Dubai debt crisis will have no impact on its business and funding plans.
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“The recently announced plans in respect of debt of Dubai World has no impact on Emaar Properties PJSC financial position or operations or its ability to meet any obligations,” the Indian firm said in a statement.
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“Emaar Properties remains committed to its investments and Emaar MGF’s business in India,” it said.
Emaar MGF filed papers with the Indian stock market regulator in September for an initial public offer, which sources said could raise about Rs4,000 crore ($860 million).
Omaxe says has $9.6 mn exposure to Dubai
Indian realty firm Omaxe has a Rs450 million rupees ($9.6 million) exposure through a joint venture with Dubai World’s property developer unit Nakheel, and is looking to exit the project, its chairman said on Friday.
Dubai Marina’s tower blocks rise over the Shoreline Apartments on Nakheel’s Palm Jumeirah in Dubai. Steve Crisp / Reuters
Omaxe was to have invested Rs450 crore in the project but has so far paid only 10%, Rohtas Goel said by telephone.
“They have put the project on hold. Nakheel has not given us the land they promised us,” Goel said.
“We will seek to get the money back.”
Shares in Omaxe were down 2.8% down at Rs92.65 at 2:47 pm (0917 GMT), having fallen nearly 9% earlier.
‘Jaiprakash, Parsvnath have no Dubai exposure’
Diversified Indian firm Jaiprakash Associates has no projects or investment in Dubai and has also not borrowed from the emirate, its executive chairman Manoj Gaur told Reuters on Friday.
Jaiparakash’s interests span from real estate to cement.
Another real estate firm Parsvnath Developers also has no project in Dubai, chairman Pradeep Jain said.
“We don’t have any relation or investment or project in Dubai,” Jain told Reuters.
Jaiprakash shares were down 5% at Rs210.20 by 2.20 pm in a Mumbai market that had lost 2.6%.
Parsvnath fell 4.7% to Rs102.55.
Sobha Developers has no exposure in Dubai
Sobha Developers Ltd has no exposure in Dubai, but the group does operate in west Asia through various companies unrelated to the Indian listed firm, its chairman said on Friday.
“Sobha in Dubai is completely different from Sobha here. All these companies have nothing to do with Sobha (Developers) in terms of ownership,” chairman PNC Menon told Reuters over phone from Bangalore.
He, however, said he personally owns stakes in west Asian companies with other partners and has operations in Bahrain, Dubai and Oman. Menon said the west Asia business group had completed and sold off three commercial business towers and one residential tower.
At 1.57 pm, shares of Sobha Developers were down 6.59% at Rs216.3 in a weak Mumbai market.
Rajesh Exports sees no payment default
Jewellery exporter Rajesh Exports Ltd said on Friday the Dubai crisis will affect the business as a whole, but the company is not in any direct threat of payment defaults, a top official said.
The company’s receives 40% of its revenues from Dubai and 80% of its payment from United Arab Emirates in cash.
“This crisis will definitely have an affect the overall business in Dubai,” Rajesh Mehta, chairman and manging director told newschannel ET Now.
“But we are into jewellery exports… Our exports are not directly related to the companies and the crisis is primarily in the real estate market, so we are not directly in the danger of any default of payments by any of our clients,” he said.
“But the psychological impact will be there and that is not good news for our company also,” he added.
At 12.34 pm, shares of the company were down 4.82% at Rs74.
No material exposure to Dubai: ICICI Bank
Amid fears of Dubai debt crisis, ICICI Bank on Friday said it does not have any significant exposure to Dubai corporates.
“ICICI Bank has no material, non-India linked exposure to Dubai corporates,” an ICICI Bank spokesperson told PTI.
As such, the questions pertaining to any losses to the bank due to the imminent crisis in Dubai does not arise. Delhi-based Oriental Bank of Commerce also said the bank does not have any exposure to Dubai.
“We have no exposure there,” OBC executive director SC Sinha said.
After realty crash, Dubai World is now facing debt crisis. There are fears that Dubai’s conglomerate and the middle east’s largest realty firm Dubai World may default on its around $59 billion debt and is seeking postponing of the debt until at least May.
Dubai, which borrowed hugely during the real estate boom, has incurred large losses due to real estate slump during the global recession.