Emaar agrees to Dh1.22 billion insurance claim on Address Downtown hotel fire
Dubai developer Emaar Properties has agreed a billion dirham insurance claim with Orient Insurance over the dramatic fire at its Address Downtown hotel on New Year’s Eve 2015.
In a statement to the Dubai bourse this morning Emaar confirmed that it had agreed the Dh1.22 billion insurance claim with Orient Insurance for the fire at the 63-storey tower, which police later said was caused by an electrical short circuit on a spotlight.
The vast insurance claim is thought to be the largest ever agreed in the GCC and Middle East.
Dubai’s largest listed developer said that the insurance claim would mean that it could reverse a Dh301 million provision made in its 2015 accounts.
Emaar said that this would mean that the cash would be recorded as income in its fourth quarter 2016 results.
Last year, Emaar’s fourth quarter results missed analysts’ expectations because of the Dh301 million write down.
The Address Downtown Dubai fire
<div class=”embedObjects”><img src=”http://www.thenational.ae/assets/otherimages/bz07-Address.jpg” alt=”Address” width=”475″ height=”314″></div>
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