Eshraq focuses on Abu Dhabi and Dubai projects as construction starts
Eshraq Properties says it is pressing ahead with long-delayed projects in Dubai and Abu Dhabi.
The Abu Dhabi-listed developer started initial work on the Dh225 million Jumeirah Rise project in Jumeirah Village Circle in October. It said construction would last for 25 months.
Eshraq said it intended to retain all 192 apartments and 124 hotel apartments for leasing but that it had the option of selling about half of them if it needed the money. The company said it hoped to finance 60 per cent of the construction costs from its own balance sheet and 40 per cent through bank debt.
It also aims to start construction on its Marina Rise project on Reem Island in April this year and work on its ambitious Gateway scheme in Abu Dhabi next year. “Eshraq is a new company – Eshraq is shining,” said Abdullah Saleh Almeheimidy, its chief executive.
Jassim Alseddiqi, the managing director and chief executive of Abu Dhabi-based alternative investments company Abu Dhabi Financial Group, was appointed chairman of the developer last year. A new management team was also appointed.
Abu Dhabi Financial Group is also Eshraq’s second largest shareholder, with its capital markets arm Integrated Capital holding a 9.47 per cent stake in the company. However, Eshraq said that ADFG would not provide funding for the projects.
Eshraq floated during the depths of the global financial downturn in 2011 owning three major properties: Jumeirah Rise in Dubai; Marina Rise, a cluster of residential and office towers on Reem Island; and a mixed-use project, Gateway, between the Maqta and Sheikh Zayed bridges in Abu Dhabi.
It has not completed any of its three debut projects and has instead concentrated on selling plots of land on Reem Island and operating a hotel in Dubai.
“What happened in 2011, I don’t have any answers for that. I started in this company in 2015 and I am starting to push the company to construction and acquisitions and operating its own facilities,” said Mr Almeheimidy.
The 1 million square feet mixed-use Gateway project was scheduled for completion in 2009. Mr Almeheimidy said that Eshraq would start work on the Dh600 million project next year. “By the time we get to 2018 we will be in better shape,” he said.
Eshraq’s Marina Rise project, 500 apartments on Reem Island which was first announced in 2007, was also hit by the global financial crisis.
Eshraq said that it was considering rebranding its projects using its Nuran hotel brand. Eshraq acquired the Nuran Marina hotel in Dubai Marina from Emaar in 2012 and continues to operate the property.
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