Eshraq Investments, an Abu Dhabi Securities Exchange (ADX)-listed company, has revealed that it is nearing completion of the process of acquiring SHUAA-managed Goldilocks Fund through the issuance of new shares.
The company is in the process of reducing the share capital from $633 million to $388 million to offset accumulated losses, and is also working on the subsequent capital increase in exchange for the acquisition.
This acquisition is expected to enable Eshraq to increase its profitability, improve its share price and position the company for strong business development, while creating tangible and long-term sustainable value for Eshraq shareholders.
Eshraq also announced its condensed consolidated financial results for the six months ended June 30, 2022. On the core operations front, the company’s gross profit from commercial operations was 151.7 percent higher than in the same period last year. The company reported a net profit of $1.9 million, down 59 percent year-on-year due to higher profit from its public equities portfolio last year compared to this year.
“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. We are optimistic that this acquisition will accelerate future growth opportunities and create long-term value for our shareholders. We look forward to provide more updates to the shareholders in the coming weeks.”
The company recorded a total operating income of $4.2 million, driven by Eshraq’s leasing and hospitality businesses. Eshraq’s Burj Daman Apartments and Nuran Marina Serviced Residences achieved occupancy rates of 99 percent and 89 percent, respectively, and Nuran Marina recorded a 70 percent increase in average room rates (ARR), all contributed by the company’s proactive and strategic leasing efforts.
Marina Rise, the company’s first mixed-use development on Reem Island, achieved 98 percent occupancy in the second quarter, strengthening recurring revenues and monetization of Eshraq’s 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.