The Dubai-headquartered firm Emaar Properties recently had a 20% cash dividend proposal brought forth by its board of directors. The proposal calls for a cash dividend from the nominal value of shares which are designated to be ratified during the upcoming Annual General Meeting (AGM). This new dividend policy, which the board of directors proposed, is aimed at a minimum of 20% from the nominal share value in an effort to increase value for company stakeholders.
Emaar Properties Chairman, Mohamed Ali Alabbar stated, "To achieve our Vision 2010 of being one of the most valuable companies in the world, the business must re-invest its resources for Emaar to continue its path to growth. The proposed new divided policy further demonstrates our strong investor relations and corporate governance policies, and will serve as a roadmap for the company's growth."
This 20% minimum dividend policy is dependant on specifically related global and domestic market conditions in conjunction with Emaar's own forecasted capital commitments and internal growth rates. The Annual General Meeting is scheduled to take place in March and it is at that time when shareholders will approve the new dividend policy.
Aside from the recent activity by the board of directors, Emaar has also been busy purchasing property in Istanbul, Turkey. Signing on a deal to buy 73,571 square meters of lucrative property in from Toprak Holding. It was released that the property cost a reported $400 million and the Emaar plans on developing mixed-use products with both residential and commercial spaces designed with characteristics attractive to tourists. Although the transaction has not closed, the details and other final negotiations are currently underway. Other specifics such as those dealing with master-planning and construction will be released very soon.
Emaar Turkey's general manager, Ozan Balaban has said that the property which Emaar is purchasing is in a prime central area of Instanbul and would be an ideal site for creating the planned mixed-use development. Products of this type are one of Emaar's core specialities. It was also stated by Balaban that this move by Emaar clearly illustrates the company's strong commitment to a future in Turkey.
