Eshraq Properties sets growth plan with new project

The real estate developer Eshraq Properties said it is investing Dh750 million in projects in Abu Dhabi and Dubai set to be complete by 2021 as new leadership at the company tries to turn the corner following a series of quarterly losses.

Jassim Al Seddiqi, who was appointed company chairman in July, said on Tuesday one of the three projects will be in Jumeirah Village Circle in Dubai and the other two are in Abu Dhabi – Marina Rise on Reem Island and The Gateway in Sas Al Nakheel.

The projects are mostly residential but also include mixed-use areas for hotel and shopping developments.

“Eshraq Properties is proud to have built a unique portfolio of diversified properties, many of which are long-established and iconic to the Emirati lifestyle and culture,” said Mr Al Seddiqi, who is also chief executive of Abu Dhabi Financial Group.

“We are excited for the new additions to our portfolio, which are a significant contributor to the economy, society and community of the UAE. Eshraq Properties is looking forward to escalate our rate of growth in the upcoming year and increase shareholder value in the long term.”

Eshraq, whose portfolio includes properties in the Dubai International Financial Centre, reported a loss of Dh1m for the first quarter of this year compared with Dh7m in losses in the same period a year earlier.

However, Mr Al Seddiqi said that the company was on a strong financial footing despite the losses because it does not have any debt and banks would be willing to help it finance projects.

Shares of Eshraq closed down 1.1 per cent on Tuesday before the announcement.

At the same time the chairman said that Eshraq would not distribute any dividends until the company becomes profitable.

mkassem@thenational.ae

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