Dubai's Emaar raising $700m from banks: chairman

Dubai's Emaar Properties is in the process of raising around $700 million from banks, its chairman told local television on Monday.

Mohamed Alabbar said the real estate firm, around 30 per cent owned by the Dubai government, was currently undertaking a "big financing operation" which was receiving a favourable response from lenders.

"The opportunities for financing and refinancing are excellent and likewise the prices are excellent," Alabbar said in an interview with Dubai TV, due to be broadcast on Tuesday.

"We are at present undertaking a big financing operation ... We're talking in the region of $700m."

Sources told Reuters last month that Emaar was in the process of raising around $800m through a two-tranche loan which was backed by four malls, including Dubai Mall, one of the world's largest shopping centres.

Emaar needs to raise around Dh6.7 billion ($1.8bn) between the second half of 2011 and next year, a research report from Rasmala investment bank said at the beginning of October.

Earlier, in a separate television interview, Alabbar said Emaar would not be booking any provisions in its third-quarter results.

Offers to buy some of its hotel had also been rejected, Alabbar told Al Arabiya television.