The companies said in a Press statement yesterday that Bawadi will provide the land valued at Dh3.85 billion while Emaar will shell out Dh3.85 billion to finance the project.
"Depending on project phasing, Bawadi will transfer corresponding land rights to the joint venture and Emaar will contribute its equivalent portion of cash to the joint venture," the statement said.
It added that the project includes a family-oriented theme park of 15 million square feet featuring various world-class attractions. The park will be situated at the heart of the Dh200 billion Bawadi development and near the Arabian Ranches, another Emaar project.
"One of the focal areas of the plan is tourism development and we are confident that the abilities of the two companies will contribute effectively to support the sector," said Mohammed Al Gergawi, chairman of Dubai Holding, Tatweer’s parent company.
The statement said the project, whose board will have equal representations from Emaar and Bawadi, would start earning by 2009, with compounded annual rate of returns exceeding 15 per cent. Emaar will appoint the board chairman and manage the joint venture.
Mohamed Ali Alabbar, chairman of Emaar, said the company’s partnership with Bawadi will increase Emaar’s land bank in Dubai by 76 per cent to 162 million square feet.
He said the deal is a "perfect fit" to the Dubai Strategic Plan outlined by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, which calls for the city "taking leadership position by leveraging on its strength".
"By sharing synergies and resources from both Bawadi and Emaar, the new joint venture will strengthen the hospitality, leisure and residential infrastructure of the project, and give further impetus to tourism growth in Dubai," said Tatweer’s executive chairman, Saeed Al Muntafiq.
The Bawadi development will have the world’s longest chain of luxury hotels on a 10km stretch, adding 51 luxury hotels and over 60,000 rooms to the hospitality sector in Dubai.
