Tejoori to sell Dubai land to property trader for $6m

5th Jan 2017 12:33

(ShareCast News) - Dubai-based investment firm Tejoori is to sell the remaining Arjan plot of land to a veteran property trader from the United Arab Emirates, for $5.8m (21.3m dirhams).The AIM-listed company entered into a into a memorandum of understanding at the end of December 2016 with Mohammad Ali Abdulla and agreed to sell the remaining Arjan plot of land within 60 days, subject to approval from the Dubai Land Department.Tejoori said Abdulla is "national of the United Arab Emirates and he has a number of years of experience of trading in properties and land" in the country.The company will use the funds received, estimated to be $5.7m, as working capital and to supplement an intended return of cash to shareholders.The Arjan plot, which Tejoori bought in December 2012 along with two other plots, comprises of one plot of land in Al Barsha South Third in Arjan, a commercial and residential property development in Dubai. It had a book value of $4.14m at the end of June 2016 and had a total ground floor area of approximately 355,209 sq ft with no development on it.In May, the company sold one of the three Arjan land plots for $6.5m and sold the second in December, for $3.7m.The company said that the three plots never contributed to any revenue and it instead incurred a loss on revaluation of $2.9m and realised a $180,747 loss on sale.Shares in Tejoori were up 13.08% to 0.368p at 1035 GMT.