Drake and Scull signs-off the sale deal of its ownership share in the ONE PALM development in Dubai
Company completes phase-1 of the deal with Omniyat Properties
UAE, March, 2017 – Drake & Scull International PJSC (“DSI” or the “Company”), a regional engineering and services leader, signed today the sale deal of its ownership share in the ONE PALM development in Dubai.
The ONE PALM development, a joint venture project between Omniyat Properties and DSI, was launched in 2014. The flagship project is located on the left trunk of Palm Jumeirah and is considered as one of the most iconic and upcoming residential developments in Dubai.
Omniyat Properties, the developer of the project has agreed to purchase DSI’s stake in the project. The joint venture partners concurred to a provisional settlement plan comprising of consecutive phases that is scheduled to be completed in 2017 which will generate liquidity of over AED 300 million 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 finalization throughout the fiscal year.
This transaction marks an important milestone in the DSI turnaround and capital restructuring plan that was initiated in Q4 2016. The company is progressing steadily with its divestment program and will 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 stabilize the business in preparation for a new phase of financial & 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.