UAE developer Eshraq Properties reported a net profit of AED32.2mn in 2017 as compared to a net loss of AED301mn for the same period in 2016.
On the development front, the developer achieved several key milestones in 2017, including the construction initiation of the Marina Rise, a 233-apartment project on Reem Island, expected to be delivered by the end of 2019. The company also finalised the design of its Jumeirah Rise project in Dubais Jumeirah Village Circle area and will look to award the construction contract in the second quarter of 2018.
In addition, Eshraq expects to award a contract for the design of its flagship Gateway project, located between the Maqtaa Bridge and Sheikh Zayed Bridge in Abu Dhabi, by the end of 2018.
In 2017, Eshraqs fully owned Nuran Marina hotel apartments achieved a 91.4% occupancy milestone for 2017 compared to 85.4% during the previous year. Furthermore, the company also fully deployed its capital in income-generating investments to maximize returns.
On the corporate front, Eshraq was granted the right to own land and real estate properties throughout Abu Dhabi by the Executive Council of the Emirate of Abu Dhabi in December 2017. Providing Eshraq the right for land and real estate properties ownership beyond the emirates investment zone areas and throughout the entire emirate marks a turning point for the companys long-term growth plans, as it enables the developer to significantly expand its footprint across Abu Dhabi.
Throughout the year, Eshraq has also made substantial progress in its negotiations with Reem Investments in relation to the latters proposed acquisition of a strategic shareholding within Eshraq. This landmark transaction, likely to be completed in the second quarter of the year, is expected to transform Eshraq into a key master developer and the second largest listed real estate developer in Abu Dhabi.