older articles confirms SIZE27 Apr 2016 17:52
Investment company Tejoori has announced that it is to spend $15.5m buying three land plots covering a total of 245,891 sq ft of land within the Dubailand project after cancelling its investment in The Lagoons Spas project.
Tejoori had initially invested in Dubai Properties Group's $817m Lagoons Spa project back in 2007, but the project has failed to move forwards since.
Therefore, it has now agreed to transfer its investment into three plots of land at the $5.4bn Arjan development at Dubailand, where Dubai Properties Group (DPG) is master developer.
Tejoori said that the anticipated floorspace that can be developed on the plots is around 760,851 sq ft, and that it can develop either commercial or residential buildings on the site.
It had paid an initial $13.62m for The Lagoons plots more than five years ago, but that this has been offset against the value of the Arjan plots. The remaining $1.92m will be paid to DPG over the next 18 months.
The carrying value of the Lagoon plots had been written down to $4.39m in Tejoori's books, but under the original deal it was committed to buy a further $36m of land at The Lagoons.
Tejoori CEO Abdullah Lootah said: "This transaction has, in effect, transferred our investment from the Lagoon Plots to the Arjan Plots, which we anticipate will have a much shorter time before we are able to realise value, given the more advanced stage of development of the area.
"In addition, we have been able to significantly reduce our liabilities on our property investments, as the outstanding balance on the Arjan Plots AED 7.04 million ($1.92 million) is substantially below that which was outstanding on the Lagoon Plots ($36 million)."