Emaar seeks to convert loans into project finance.

Dubai developer Emaar Properties said it will roll over $1.23 billion debt maturing in 2010 into long-term project financing deals with analysts adding the pressure to make hasty divestments was now off.
Emaar has Dh4.5 billion of loans maturing in 2010, its financial statements posted on the company’s Web site on Sunday show.
“The loans maturing in the next one year are primarily bridge loans for Emaar’s international projects, and as per terms, are to be converted into longer term project financing,” the property company said in an e-mailed statement.
“Emaar expects the loans to be converted into project finance during this year,” the statement said.
Emaar, which is 31.2 per cent owned by the Dubai government, is the Arab world’s largest listed property developer.
“Emaar’s debt position is very comfortable and the company has one of the lowest debt to equity ratios,” the statement said.
Shuaa Capital analyst Roy Cherry said rolling over the debt would enable Emaar to avoid premature divestments of key investment properties.
“The maturity extension won’t be a problem for most, but the rates will likely see an increase,” he said.
“The creditors see the strong balance sheet, the growing recurring cash flow generated by the investment property portfolio and relatively low debt-to-equity levels.”
Last month, the Dubai government unveiled a $9.5 billion rescue plan for state-owned conglomerate Dubai World, aimed at restructuring $26 billion debt linked to the conglomerate and its property units.
“The company sits on extremely attractive high value assets producing healthy recurring returns, like Dubai Mall and the downtown hotels,” Cherry said.
“Emaar is not in a distressed state,” he added.
Details about the nature of the project financing and whether it will contain any equity element were not provided by Emaar.
In February, Emaar said it would focus on mid-income housing in emerging markets and overseas expansion to boost 2010 revenue after returning to profit in the fourth quarter.