Amlak, Mazaya salvage Skygardens deal

by Sean Cronin Tuesday, 10 June 2008

Amlak Finance has agreed to buy 80% of Mazaya Holding’s Skygardens tower in Dubai for $449 million after resolving a disagreement that threatened to derail the deal.

“From our perspective all pending issues were cleared with the assistance of the Dubai International Financial Centre (DIFC), paving the way for this transaction to be finally concluded,” Amlak CEO Arif Alharmi said in an emailed statement on Tuesday.

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The 160 metre-high Skygardens tower is being built within DIFC and will include a mixture of business and residential space.
Amlak said last week it was seeking 82 million dirhams ($22.33 million) in damages from Mazaya after an initial agreement to buy Skygardensi fell through.

The Islamic home finance firm said the deal collapsed because a unit of Kuwait-based Mazaya was unable "to honour the terms and conditions stipulated in the MoU".

The unit, First Dubai Real Estate Development Company, subsequently said it was willing go ahead with the sale, despite the lapse of a May 31 deadline, and if the sale fell through it would keep Amlak's 82 million-dirham deposit.

Amlak has moved into property development in an effort to diversify its revenue base. It holds more than $1.2 billion in real estate investments.

Following a restructuring, Amlak Finance has focused on its core business of home finance and real estate investments.

Amlak shares have risen about 36% over the last year.



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