Eshraq Investments announced on Monday that it has signed a sale and purchase agreement (SPA) with Reportage Properties for the sale of a plot of land on Al Reem Island, Abu Dhabi, with a total GFA of approximately 650,000 square feet, for a purchase price of Dh126.6 million.

The sale is above the book value of the site and underscores the company's potential to monetize its land bank through a transaction beneficial to Eshraq's shareholders.

Reportage Properties is one of the leading real estate developers offering affordable, modern design homes in Abu Dhabi, Dubai, Kinshasa, Turkey, Egypt and Morocco.

Under the terms of the sale agreement, Reportage Properties will use the land parcel located on Al Reem Island for a five-year residential development.

The sale agreement with Reportage Properties is another step in Eshraq's land monetization program, which was approved by the Board of Directors on September 2, 2022, following the previous sale of two parcels of land from JVC to Danube Properties.

Under the plan, Eshraq has so far sold approximately 27% of the total GFA of its existing land bank for Dh160 million, and Eshraq is still in discussions with other parties for the sale of additional parcels or joint venture arrangements.

Eshraq's land monetization program is underway with the goal of fully monetizing the company's land bank by selling or engaging a partner to develop the land bank and subsequently selling it within the next three years.

"We are pleased to have entered into this agreement with Reportage Properties, one of the leading private real estate developers in the UAE. The price of this transaction is attractive to us and reflects the strength of the company's balance sheet. we are committed to continue the steady implementation of our land monetization program to improve Eshraq's profitability in the coming quarters," said Jassim Alseddiqi, Chairman of Eshraq Investments.

Aref Ismail Al Khoori, founder and chairman of the reporting group, said." We are excited to partner with Eshraq on our first project in Reem Island. This is a great addition to our growing portfolio of 17 projects in the UAE, with approximately 11,000 residential units in key investment locations in Abu Dhabi and Dubai. Based on our approach to buying and selling, and providing affordable housing solutions to the public, we will continue to actively contribute to the development of the UAE real estate market".