Abu Dhabi-based Eshraq Investments said it was in the final stages of its full acquisition of Goldilocks Fund.
The company is in the process of reducing the share capital from AED2.325 billion to AED1.427 billion to offset accumulated losses, and is also working on the subsequent capital increase in exchange for the acquisition.
This acquisition is expected to enable the Abu Dhabi Securities Exchange-listed Eshraq to increase its profitability, the company said in a statement.
“We are working diligently to complete the acquisition of the Goldilocks Fund. In line with the mandate given by our shareholders, we have set the wheels in motion to strengthen the company’s financial performance and improve operational efficiency,” Jassim Alseddiqi (below), Eshraq’s chairman said.
“We are optimistic that this acquisition will accelerate future growth opportunities and create long-term value for our shareholders. We look forward to providing more updates to the shareholders in the coming weeks,” he added.
The deal was first announced in March, and is expected to raise Eshraq’s assets to more than AED3.8 billion.
The Abu Dhabi-listed firm also released its condensed consolidated financial results, declaring a 151.7 percent rise in gross profit for the six months ending June 30.
On core operations front, the company’s gross profit from commercial operations was 151.7 percent higher than in the same period last year. However, its net profit of AED7.29 million was down 59 percent year-on-year due to higher profit from its public equities portfolio last year.
Total operating income of AED15.6 million, driven by its leasing and hospitality businesses. Eshraq’s Burj Daman Apartments and Nuran Marina Serviced Residences achieved occupancy rates of 99 percent and 89 percent respectively. Nuran Marina recorded a 70 percent increase in average room rates (ARR) thanks to the company’s proactive and strategic leasing efforts.
Marina Rise, Eshraq’s first mixed-use development on Reem Island, achieved 98 percent occupancy in the second quarter, strengthening recurring revenues and monetisation of its land bank.
The company is exploring further development opportunities, including joint venture opportunities, for its land plots in Reem Island, Abu Dhabi and Jumeirah Village Circle, Dubai.
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