Dubai:
Negative publicity relating to readiness and fitness of the Commonwealth Games Village in New Delhi is likely to impact the Indian joint-venture of Dubai-based Emaar Properties, a news report has said, quoting official documents.
Emaar-MGF transferred the Commonwealth Games Village to the CWG organising committee in August, ahead of the event's start in October, the Emaar Properties document's planned convertible note sale dated September 29 said.
"This transfer was evidenced by an official handover certificate," the document said.
MGF, along with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC), has been involved in the construction, planning and design of the Commonwealth Games Village in New Delhi, India.
"Although Emaar-MGF has successfully completed and handed over The Commonwealth Games Village to the organising committee of the Commonwealth Games in time for the commencement of the sporting event, there can be no assurance that the guarantor's [Emaar] operations in India will not suffer reputational consequences as a result of being associated with the project," it said.
Emaar warned that further negative statements in relation to the Commonwealth Games Village "could have a negative impact on the market reputation of Emaar-MGF or may create an adverse market environment for the company's operations in India."
The village development will be transferred back to Emaar-MGF once the games end and properties handed over to company customers who already made purchases in the development and for future sales, according to the document.
Meanwhile, Emaar has also announced the placement and final terms of its offering of USD 450 million worth of Convertible Notes, due 2015, with a potential maximum size of USD 500 million if the over-allotment option is exercised.
The issue was scaled up from the initial USD 375 million size due to strong investor demand.
The company intends to use the net proceeds of the offering to refinance short term liabilities and for general corporate purposes.