On Monday, Eshraq Investments announced that it has signed a sale and purchase agreement (SPA) with Reportage Properties to sell a land plot on Al Reem Island in Abu Dhabi with a gross floor area of over 650,000 square feet for Dh126.6 million.
The sale, which was completed at a price above the plot’s book value, highlights the Company’s ability to monetise the land bank through deals that will be profitable for Eshraq’s shareholders.
One of the top real estate developers, Reportage Properties, offers reasonably priced, contemporary residences in Abu Dhabi, Dubai, Saudi Arabia, Turkey, Egypt, and Morocco. Reportage Properties will use the property in Al Reem Island for a residential project that will be developed over a five-year period in accordance with the terms of the sales agreement.
The sales deal with Reportage Properties is another stage in Eshraq’s land monetization programme, which was approved by the board of directors on September 2, 2022, and follows the earlier sale of two plots in JVC to Danube Properties. Eshraq has sold about 27% of its current land bank GFA under the programme so far for Dh160 million, and Eshraq is still in talks with other parties about the sale or joint venture arrangements for further plots.
With the help of partners who will help grow the land bank and then sell it, Eshraq’s land monetisation programme aims to fully monetize the Company’s land bank over the following three years.
“We are pleased to enter into this agreement with Reportage Properties, one of the leading privately owned real estate developers in the UAE. 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 programme to improve Eshraq’s profitability in the coming quarters,” Jassim Alseddiqi, chairman of Eshraq Investments, said.
Aref Ismail Al Khoori, founder and chairman of Reportage Group 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 approximately 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.”