Eshraq sells Reportage Properties 650,000sqft land plot on Al Reem Island
Under the terms of the sales agreement, Reportage Properties will use the plot in Al Reem Island for a residential project to be developed over a five-year period
Eshraq Investments has entered into a Sale and Purchase Agreement (SPA) with Reportage Properties for a land plot on Al Reem Island, Abu Dhabi, with approximately 650,000sqft of Gross Floor Area for a purchase price of US$34.4mn. Eshraq said that the sale concluded at a price higher than the plot’s book value, and underscores its potential to monetise the land bank via transactions that are accretive to Eshraq’s shareholders.
Jassim Alseddiqi, Chairman of Eshraq Investments said: “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 monetisation program to improve Eshraq’s profitability in the coming quarters.”
Reportage Properties is a real estate developer that offers affordable, modern design homes in Abu Dhabi, Dubai, Saudi Arabia, Turkey, Egypt and Morocco. Under the terms of the sales agreement, Reportage Properties will use the plot in Al Reem Island for a residential project to be developed over a five-year period.
In July 2021, Eshraq Investment’s Marina Rise project received its Building Completion Certificate.
Following the previous sale of two plots in JVC to Danube Properties, the sales agreement with Reportage Properties is another step in Eshraq’s land monetisation program, which was approved by the Board of Directors on 2 September 2022.
Under the program, Eshraq has so far sold c. 27% of its existing land bank GFA for US$43.5mn, and it remains in discussions with other parties regarding the sale or joint venture arrangements for other plots, the statement said.
The company’s land monetisation program is being implemented with the goal of fully monetising the company’s land bank over the next three years through the sale or engagement of partners to develop the land bank and its subsequent sale, it added.
In March 2022, Reportage Properties said that construction work has begun on its 5,500 residential development in Cairo, Egypt.
Aref Ismail Al Khoori, Founder and Chairman of Reportage Group stated, “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.”
In September 2022, Reportage said it had begun construction on a new townhouse project in Dubai.
