UAE-based Omniyat Properties has agreed to purchase Drake & Scull International’s (DSI) stake in the One Palm development on the Palm Jumeirah, finalising the deal of its ownership share on Thursday.
The joint venture partners agreed to a provisional settlement plan comprising of consecutive phases that is scheduled to be completed in 2017.
The deal is expected to generate liquidity of over $82m (AED300m) for DSI. The first phase of the settlement plan is approved and the proceeds of the payment will be remitted in March 2017.
Progress updates on the residual phases will be further announced by the joint venture partners upon finalisation throughout the fiscal year.
This transaction marks an important milestone in the DSI turnaround and capital restructuring plan that was initiated at the end of last year where the company plans to expand its MEP business, aiming to complete key projects within the sector in the first half of the year.
As part of its ongoing divestment programme, the company will also continue to pursue the disposal and monetization of its non-core assets and non-performing subsidiaries to generate cash for the business.
The company announced earlier in February 2017 several strategic measures to stabilise the business in preparation for a new phase of financial and operational recovery.
The DSI Annual General Meeting of the shareholders is scheduled to convene during the month of April 2017 to approve these measures. The proposed date of the meeting will be announced by the company by end of March 2017.
The One Palm development was launched in 2014.