Another plot sold!!!! Cash is king!5 Oct 2016 08:23
The Board of Tejoori (AIM:TJI), the Dubai-based Shari'a-compliant investment company, announces that the Company entered into an agreement on 4 October 2016 (the "Agreement") with SRG Holding Limited ("SRG") pursuant to which it has agreed to dispose of one of the two Arjan plots of land (an "Arjan Plot" or, collectively, "the Arjan Plots") currently owned by Tejoori and part of Tejoori's investment portfolio, for a cash consideration of approximately US$3.7 million (the "Consideration") (the "Disposal").
�
The Arjan Plots currently owned by Tejoori comprise two plots of land in Arjan, a commercial and residential property community development within Dubai Land in Dubai, United Arab Emirates. Tejoori acquired these two Arjan Plots in December 2012 along with a third Arjan Plot. As previously announced the third plot previously owned by Tejoori was sold by the Company on 3 May 2016 for a cash consideration of US$6.5 million.
�
The book value of the three Arjan Plots in Tejoori's unaudited interim accounts as at 31 December 2015 was US$13.91 million (30 June 2015: US$13.91 million). The Arjan Plot the subject of the Disposal had a book value of US$3.06 million in Tejoori's accounts as at 31 December 2015 and had a total ground floor area of approximately 167,552 sq ft. No development has taken place on the plots to date, and in the latest published accounts for the 12 months ended 30 June 2015, the three plots owned at that time did not contribute any revenue to Tejoori and incurred a loss on revaluation of US$2,546,358.
�
Dubai-based SRG is one of the leading family-owned holding companies in Dubai with extensive operations in property development and management, hospitality, wholesale trading and investments. SRG was founded in 1958 by Abdul Salam Al Rafi. A number of Dubai's most recognisable landmarks have been built and managed by SRG including Burj Al Salam, Sheraton Grand Hotel Dubai and Marina Heights Tower. SRG's hospitality division partners with leading hotel operators including Starwood's Sheraton Hotels & Resorts. Furthermore the group invests in real estate and private equity in international markets. Tejoori has no historical ties or relationship with SRG. Further information on SRG can be found at www.srg.ae.
�
The Consideration for the Disposal is to be satisfied by a cash consideration of 13,500,000 dirhams (equivalent to approximately US$3,675,470 at the prevailing exchange rate on 4 October 2016). The Company has not as yet received the cash in relation to the Disposal. Completion of the Disposal remains conditional only on Tejoori and SRG receiving the necessary approvals from the Dubai Land Department and receipt of the cash from SRG. It is expected that both conditions will be satisfied in October 2016. Further announcements will be made at the appropriate time.
�
Following co