31 Aug 2017 - 0:42
2 Abu Dhabi property firms plan merger
Dubai: Two major Abu Dhabi real estate developers, Eshraq Properties and Reem Investments, said yesterday they aimed to merge as an economic slowdown in the emirate puts the housing market under pressure.
The companies said discussions were at an advanced stage for Reem to receive new shares in Eshraq in exchange for Eshraq acquiring Reem’s entire business and assets. They said this would create Abu Dhabi’s second largest listed developer.
The deal remains subject to conditions, including a final agreement on the terms including price, as well as obtaining regulatory approvals, the companies added. Proposed terms were not disclosed. Eshraq, which had assets of AED1.46bn ($398m) at the end of June, reported a net profit of AED6,36,000 for the second quarter compared to a year-earlier loss of AED101.4m.