Emaar Properties will recover 1.22 billion dirhams (US $332.15 million) after making an insurance claim for a fire at its Address Downtown Dubai property, which suffered a major blaze ahead of New Year's Eve celebrations in 2015, reports Reuters.
According to a bourse statement, the insurance claim will result in a write back of the 301 million dirhams provision created in 2015 to cover the incident.
The write back will be recorded as income in the quarter ending December 31, 2016, reported Reuters.
The fire which engulfed the 63-storey hotel on New Year's Eve was caused by an electrical short-circuit.
Emaar said in January 2016 that the fire should have "no material impact" on the company because the building and risk of fire were covered by its insurance.
Address Downtown had signed the claim with local insurer Orient Insurance.
Hotelier Middle East previously reported that, Dubai's Emaar Properties has reportedly appointed Dutco Group to carry out restoration work for The Address Downtown.
| Advertisement |
The hotel, which is in close proxitmity to the Burj Khalifa, has been shut since it caught fire 13 months ago. Since the building was swiftly evacuated and only minor injuries were reported, authorities went ahead with the 2015 New Year's fireworks display at the Burj Khalifa.
According to Arabian Business, a clean-up operation is underway on site, as is a mechanical, electrical, and structural assessment of the building prior to restoration operations. Emaar is working together with Dubai Police, Dubai Civil Defence, Dubai Municipality and Dubai Electricity and Water Authority to speed up renovation work on the hotel.
Search our database of more than 2,700 industry companies
