Eshraq and Mubadala team up for Abu Dhabi plot developments
Eshraq Properties and Mubadala Development Company are teaming up to develop plots on Abu Dhabi’s Reem and Al Maryah Islands.
Eshraq said yesterday in a filing that the joint venture company would develop land plots in Abu Dhabi owned by Mubadala on Al Maryah Island and by Eshraq Properties on nearby Al Reem Island.
The pair said that they would only disclose the locations of the plots once the joint venture company had been fully established.
“As a strategic investment company and the master developer of Al Maryah Island, we are looking for experienced partners who can support our wider strategy and bring the right credentials to these projects,” said Ali Eid AlMheiri, executive director of Mubadala Real Estate and Infrastructure.
Eshraq owns three main land assets including a sizeable chunk of Reem Island close to Al Maryah Island.
The developer started selling 500 apartments in a planned residential and office towers project dubbed Marina Rise in 2007. But the company was hit hard by the global financial crisis and for the past decade Eshraq instead concentrated on operating a hotel in Dubai and selling some of its smaller land plots on Reem Island.
However, last year the company received a new lease of life when Jassim Alseddiqi, the managing director and chief executive of the powerful Abu Dhabi-based alternative investments company Abu Dhabi Financial Group (ADFG), was appointed Eshraq chairman.
ADFG is also Eshraq’s second largest shareholder.
Eshraq said that the appointment of Mr Alseddiqi had enabled it to “establish a strong financial footing and lay out a new growth strategy.”
In January the company said it would press ahead with three major projects: Jumeirah Rise in Dubai; Marina Rise, on Reem Island; and a mixed-use project Gateway, between the Maqta and Sheikh Zayed bridges in Abu Dhabi.
Mubadala, the Abu Dhabi strategic investment company, which is in the process of merging with International Petroleum Investment Company, owns Al Maryah Island and acts as the master developer of the island, which is also the location of a new financial free zone.
However, local property agents say that over the past four years the company has been working to reduce its exposure to domestic real estate development.
Follow The National’s Business section on Twitter