Mubadala Development Company and Eshraq Properties are exploring opportunities for establishing a joint real estate development company in Abu Dhabi following the signing of a Heads of Terms agreement.
The two parties agreed on a range of principles relating to the potential venture to jointly develop plots in Abu Dhabi owned by Mubadala on Al Maryah Island and by Eshraq Properties on Al Reem Island.
Ali Eid AlMheiri, Executive Director of Mubadala Real Estate and Infrastructure, said: “As a strategic investment company and the Master Developer of Al Maryah Island, we are looking for experienced partners who can support our wider strategy and bring the right credentials to these projects.
“We are also pleased to be creating opportunities for a UAE business like Eshraq Properties to participate in the development of prime locations in Abu Dhabi.”
Eshraq Properties has a portfolio of diversified properties and development opportunities in both Abu Dhabi and Dubai, including Marina Rise on Reem Island and The Gateway in Sas Al Nakhl.
Following the appointment of Jassim Alseddiqi as new Chairman in July 2016, the firm has established a strong financial footing and laid out a new growth strategy.
Jassim Alseddiqi, Chairman of Eshraq Properties added: “This Joint Venture will benefit greatly from the combined depth of resources and experience from both parties. As we drive our strategic agenda forwards, we are committed to further diversifying our portfolio, escalating our rate of growth and establishing a stronger footing on the balance sheet.”
Following the signing of the Heads of Terms agreement, Mubadala and Eshraq Properties will start working on the JV formation.