John Laing has been purchased by Emaar, which is building what it described as the world's tallest tower and world's biggest shopping mall. The move was in attempt to expand its global reach into the real estate market.

Regardless of the cooling home prices in Newport Beach, real estate experts say the merger shows a global confidence in Orange County and the broader California housing market, which continues to be one of the highest priced real estate venues in the country. While home prices are continuing to rise or remain steady in Orange County, recorded sales are beginning to decline and homes are spending a little longer on the market.

The Emaar and Laing negotiation makes it the first Middle Eastern company to make a major investment in the California market and gives it an advantage over other global builders. Emaar Chairman Mohamed Ali Alabbar said in a statement that partnering with John Laing Homes is consistent with our strategy of expanding our business on a global basis. According to him, this agreement will provide Emaar with an important gateway into the U.S. real estate market.

Emaar gets access to a company that constructs about 3,000 homes a year and controls 150,000 undeveloped lots in California by purchasing Laing. Laing is the second largest privately held homebuilder and the 20th largest builder in the U.S., bringing in an annual $1.6 billion in revenue.

Under the terms, John Laing Homes will continue to operate at its Newport Beach headquarters under CEO Larry Webb. The merger also prepares John Laing to assist on development projects overseas. Emaar has real estate interests in the United Arab Emirates, India, Egypt, Turkey, Morocco, Syria, Pakistan, Jordan, Lebanon, Bahrain, Tunisia and Saudi Arabia.

By M. Sese
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