5th Oct 2016 06:53
LONDON (Alliance News) - Tejoori Ltd on Wednesday said it has entered into a deal with property developer SRG Holding Ltd to sell one of its two remaining plots of land in the Arjan development in Dubai for USD3.7 million.
Tejoori, a Shariah-compliant investment company, said it currently owns two plots of land in Arjan, a commercial and residential community development within entertainment complex DubaiLand in Dubai, part of the United Arab Emirates. Tejoori acquired the two plots in December 2012 along with a third plot, which was sold on May 3 for USD6.5 million.
Tejoori said the book value of the three Arjan plots on December 31 was USD13.9 million. The Arjan plot being sold under the new deal had a book value of USD3.1 million at December 31 and has a total ground floor area of 167,552 square foot.
No development has taken place on the plots to date and, for the year ended June 30, 2015, the three plots owned at the time generated no revenue and incurred a loss on revaluation of USD2.5 million, Tejoori said.
Following completion of the sale, expected later in October, Tejoori said it will use the proceeds of the sale to investigate further investment opportunities, as well as return to shareholders a portion of the overall net cash proceeds.
"We are pleased to have entered into an agreement for the sale of the plot for a cash consideration in excess of the last published book value. We will keep shareholders updated on our plans for the remainder of our portfolio and the plans for the company going forward," said Chief Executive Abdullah Lootah.
By Hannah Boland; [email protected]; @Hannaheboland
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