DUBAI, April 9 (Reuters) - Emaar Properties, Dubai’s largest developer, will not “accept” a write-down of its investments in struggling property lender Amlak Finance , which is restructuring $1.9 billion in debt, Emaar chairman said on Tuesday.
Emaar, the builder of the world’s tallest tower, controls 45-percent of sharia-compliant mortgage lender Amlak, which was hard hit by the emirate’s property crisis in 2009.
“Emaar will not accept any writedowns on its investment. We are still waiting for the government and the ministry of finance to decide on Amlak,” Emaar Chairman, Mohammed Alabbar, said on the sidelines of the developer’s annual general meeting in Dubai.
“I can assure you that Amlak’s financials are way better than they were two years ago,” Alabbar said, adding that Emaar has received 370 million dirhams ($100.74 million)from Amlak in the last two years.
Amlak has not traded since November 2008, when its shares were suspended along with rival Tamweel, as credit markets dried up and Dubai real estate prices began a slump which would see them fall more than 50 percent from their peak.
Creditors of Amlak are considering a restructuring proposal from the indebted mortgage lender, the United Arab Emirates’ economy minister said in January. ($1 = 3.6730 UAE dirhams) (Reporting by Mirna Sleiman; Editing by Dinesh Nair)