Developer Emaar shares fall following New Year's Eve blaze

 | January 03, 2016

undefinedThe UAE's biggest developer Emaar saw shares take a hit following The Address blaze on New Year's Eve.

During the first day of trading on January 3, Emaar's shares fell 1.5 per cent at the close of business but lost up to 4.4 per cent during early trading.

In a statement Emaar Properties told Reuters today that a hotel fire should have "no material impact" on the company because the building and risk of fire are covered by its insurance.

But as it named Dutco as the contractor which will carry out repairs and restore the building 'to all its glory' (see full story here), it remained unclear how the repairs will be completed.

In 2012 new regulations outlawed the use of aluminium composite panels on new buildings. It is not clear how the rules apply to the repair of older properties. The Address in Downtown Dubai was completed in 2008.

The New Year's Eve fire wrecked one side of Emaar's 63-storey Address Downtown luxury hotel and residential tower.

The company and authorities are investigating its cause, Emaar said in the statement to Dubai's bourse.

Emaar's shares were down 2.1 per cent at 6:44 GMT, having fallen as much as 4.4 per cent in early trade.

Further timelines and plans will be shared as they are finalised, said the company.

“We develop our projects to the highest standards of quality and as per international best practices.” 

The developer said that a team of international consultants has already been mobilised by Dutco Group, who are on site and working “round-the-clock”.

It added that cleaning work has started with the mechanical, electrical and structural assessment of the building and restoration also underway, just 48 hours after the fire was was extinguished.

The Dubai Civil Defence team has launched a full investigation into the cause of the fire at The Address Downtown Dubai hotel.

Dubai authorities have set up a special hotline number for those who were evacuated from the hotel.

The Dubai Government Media Office announced its Twitter account, using #dubai_guests, that evacuees from the Address Downtown Hotel should contact 0097156 683 5129 for assistance.

The Address blaze in pictures

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