Developer sold for $1 billion

John Laing Homes of Newport Beach has been purchased by Dubai-based Emaar Properties for a reported $1 billion in cash.

John Laing will maintain its offices in Newport Beach under the leadership of current chief executive Larry Webb. The acquisition closed Thursday after six months of negotiations.

The deal is said to be the largest residential real estate transaction in the history of the United States and could create one of the largest real estate companies in the world. John Laing grosses $1.6 billion annually, building approximately 3,000 homes a year with ownership of more than 150,000 empty lots. Emaar is the largest developer in the Middle East. It is the contractor on the Burj Dubai downtown, which includes the world’s tallest tower slated to open in 2008, and the world’s largest shopping mall. The firm is also behind the development of a $26-billion development for Saudi Arabia’s King Abdullah and has real estate interests in 11 other countries.

Webb said Emaar is on course to become the largest developer in the world. The company is the first Arab firm to make a major entrance into the California market, stepping in during a period of slowing sales.

“We’re both confident in the long term that California is the best place to be,” Webb said. “Emaar agrees with me that to really be a major force of real estate in the world, you must be in California.”

Webb said the deal will also pump a large investment into John Laing Homes, allowing it to expand its U.S. operations. Webb said his company will grow its developments in California and Colorado and look to new markets in Georgia, Arizona and Florida.