Emaar Confirms Stake Sale Negotiations with Indian Companies, Including Adani Group

Emaar Properties, Dubai-based real estate developer, has confirmed that it is in discussions with several Indian companies, including the Adani Group, about selling a stake in its Indian subsidiary. The company made this announcement in a filing to the Dubai stock exchange, stating that these discussions are still at an early stage and that details such as valuation and terms of the deal are yet to be finalized.

Reports suggest that the deal could be valued between ₹40-50 billion. Mint has already reported that the Adani Group is in advanced talks to acquire a majority stake in Emaar India. Sources cited in the report highlighted that Emaar India’s projects, located in key areas, make the deal appealing and could lead to favorable valuations.

Emaar first entered the Indian real estate market in 2005 through a joint venture with MGF Development, with an investment of ₹85 billion. The partnership, however, ended in 2016, and the subsequent demerger was approved by regulators in 2018. Since then, Emaar India has been operating independently, focusing on a range of residential and commercial projects in major cities.

For Adani Realty, the real estate arm of the Adani Group, acquiring a stake in Emaar India could be a strategic move to expand its presence in the Indian real estate sector. The acquisition, if finalized, would be Adani’s largest investment in real estate to date. It would provide the group with access to projects in prime locations and an opportunity to further strengthen its portfolio.

This development follows earlier reports by Business Today in September 2024, which indicated that Adani Realty had been negotiating with Emaar Properties about acquiring a stake in its Indian operations. The potential deal comes at a time when the Adani Group has been under scrutiny, with its owner facing allegations in the United States. Despite these challenges, the group appears to be pursuing its growth strategy in the real estate market.

Emaar Properties has demonstrated strong financial performance in recent times. The company reported a 30% increase in revenues during the first three quarters of 2024, amounting to AED 23.8 billion. A significant factor in this growth was a 60% rise in real estate sales, which reached AED 50 billion during the same period.

These discussions reflect Emaar’s strategy to optimize its operations in India and explore partnerships that align with its business goals. For Adani, the potential acquisition represents an opportunity to grow its real estate footprint in a market with significant demand. The outcome of these negotiations is being closely followed by industry stakeholders, given the implications for both companies and the Indian real estate sector.