Eshraq in deal with Reportage for sale of prime Reem Island plot
ABU DHABI, November 7, 2022
Abu Dhabi-based Eshraq Investments has entered into an agreement with Reportage Properties, a leading real estate developer in the UAE, to sell a key plot of land on the Al Reem Island within the emirate for AED127 million ($35 million).
Confirming the deal, Eshraq revealed that the sale had been concluded at a price higher than the plot’s book value after a go-ahead from the board of directors in September.
The deal underscores the company's potential to monetise the land bank via transactions that are accretive to its shareholders, said the company in a statement.
Eshraq pointed out that following the previous sale of two plots in JVC to Danube Properties, the agreement with Reportage Properties is another step in its land monetization programme.
With this deal, Eshraq has sold 27% of its land bank gross floor area for a consideration of AED160 million.
A leading real estate developer, Reportage Properties offers affordable, modern design homes in Abu Dhabi, Dubai, KSA, Turkey, Egypt and Morocco.
The plot, which boasts 650,000 sq ft gross floor area, will be used by Reportage to develop its first-ever project on Reem Island - a residential development - in the area over a five-year period.
On the successful sale, Chairman Jassim Alseddiqi said: "We are pleased to enter into this agreement with Reportage Properties. The transaction, at an attractive price to us, reflects the strength of the Company's balance sheet."
"We are committed to continue our steady course of implementing the land monetization program to improve Eshraq's profitability in the coming quarters," he added.
Reportage Group Founder and Chairman Aref Ismail Al Khoori said: "We are pleased to be working with Eshraq on our first project on Reem Island. This is a great addition to our growing portfolio, which includes 17 projects in the UAE with 11,000 residential units in key investment locations in Abu Dhabi and Dubai."
"In line with our approach to buy and sell and provide affordable housing solutions to the public, we continue to actively contribute to the growth of the UAE real estate market," he added.-TradeArabia News Service
