Abu Dhabi's Eshraq Investments has signed an agreement with the UAE-based developer Danube Properties for the sale of two plots for a purchase price of AED 33.1 million ($9 million), and profit over the four years.
Under the agreement, Danube Properties, a division of Danube Group, will develop the plots in Dubai's Jumeirah Village Circle (JVC) to residential projects within four years. In addition to the initial purchase price, the agreement also provides for an annual profit and an earnout mechanism payable to Eshraq tied to the projects’ profits, the investment firm said in a statement to the Abu Dhabi Securities Exchange on Thursday.
The transaction is agreed at Eshraq’s book value and seeks to monetise the land bank, it added.
The investment firm said it is discussions with other parties for sale or joint venture agreements for other plots.
Eshraq, which has assets of more than AED3.8 billion in real estate, public equities, fixed income, private equity and debt products, reported accumulated losses of AED 1.03 billion as of June, 30, 2022.
(Reporting by Brinda Darasha; editing by Seban Scaria)