Eshraq announces successful land transaction with Danube
Danube’s US $150mn project fully sold out following its recent launch and is expected to be handed over in December 2025
Eshraq Investments has announced an update to its shareholders regarding its previously announced sale agreement with Danube Properties, for the sale of two plots in Jumeirah Village Circle (JVC) in Dubai.
Following the announcement of the deal on 6 October 2022, Eshraq has now said that in addition to the initial purchase price of $9.01mn, the sale and purchase agreement provided for an annual profit and an earn-out mechanism, payable to Eshraq tied to the projects’ profits.
Danube recently announced that its $150mn project, ‘Elitz’, on these plots has now been sold out and is expected to be handed over by December 2025. The project, which taps into growing demand for affordable housing in the UAE, was snapped up by investors, buyers and brokers on launch day.
In early July 2021, Eshraq said its Marina Rise project received its Building Completion Certificate and, in early September 2022, Danube appointed Naresco Contracting as the main contractor for Skyz Tower.
The successful launch of the project is said to de-risk Eshraq’s collections from this sale; and the transaction highlights the continued progress of the company’s land monetisation programme, as approved by its board of directors on 2 September 2022.
Jassim Alseddiqi, Chairman of Eshraq Investments congratulated Danube Properties on another successful project launch. He stated, “We remain committed to delivering exceptional value to Eshraq’s shareholders through reputed partnerships that support the efficient execution of our land monetisation programme. We remain confident that our actions will enhance Eshraq’s profitability and shareholder returns.”
Eshraq’s land monetisation programme 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 sales.
In early November 2022, Eshraq said it sold Reportage Properties a 650,000sqft land plot on Al Reem Island.
