John Laing Homes reviewing all options for funding

DUBAI, United Arab Emirates - One of the largest privately held U.S. homebuilders said Sunday it is looking at all options to meet its funding needs and has reportedly shed jobs companywide to cope with the economic slump.

The developments cast doubt on the fate of John Laing Homes, whose $1.05 billion acquisition by Dubai-based Emaar Properties near the height of the housing bubble marked the Middle Eastern developer's entry into the U.S. market.

The Associated Press requested information from Emaar about John Laing's operations last week. A spokeswoman representing the Dubai developer referred questions to the Irvine, California-based subsidiary.

In a statement e-mailed Sunday, John Laing said it "is currently reviewing all potential options to meet its capital requirements" and would release details on any decision "in a timely and appropriate manner."

"John Laing Homes assures new homebuyers who are currently in the purchasing process that deposits are secure," the company added.

The disclosure follows a report in Abu Dhabi's The National newspaper that the builder has cut an undisclosed number of jobs, particularly in California and Colorado. The paper quoted a spokeswoman who added that the builder may stop sales on certain projects and shut some of its offices.

Emaar bought John Laing in June 2006. The U.S. real estate market was already slowing by then, and home prices had begun falling in certain parts of the country. Defaults linked to subprime and other risky mortgages were only just picking up steam.

John Laing's former chief executive said at the time the deal would give the company the resources to grow beyond its principal markets in California and Colorado. The builder launched a division in Phoenix and acquired Houston-based Lindenwood Homes shortly thereafter.

Emaar is Dubai's largest publicly listed developer. It is nearing completion on what is already the world's tallest building in the Persian Gulf boomtown and is developing projects throughout the Arab world.

The acquisition has been a drag on Emaar's earnings. In October, the company wrote off $204 million related to the deal. It justified the decision then as "prudent in view of the current challenging times for all businesses, especially the financial and real estate sector in the U.S."

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