Abu Dhabi: Eshraq Properties confirmed the investment of Dh50 million in Terra Real Estate Investments, representing a portion of the total paid up capital of Terra, according to a statement on Abu Dhabi Stock Exchange.
Terra owns built properties in the UAE, some of which will be used to seed a real estate investment trust, to be known as Etihad Reit, and which is supposed to be proposed for the public offering, the statement said.
The statement also said that Etihad Reit is not a separate investment made by Eshraq, but a Reit to be established by Terra, where Eshraq is one of the funding investors.
Eshraq Properties posted a net loss of Dh575 million for 2016 compared with a net profit of Dh1.6 million a year earlier.
The company owns three major properties including the Gateway project in Abu Dhabi, Jumeirah Rise and Marina Rise projects in Dubai.
It recently announced an agreement with Mubadala Real Estate and Infrastructure to explore partnership in developing plots owned by Mubadala on Al Maryah Island and by Eshraq Properties on Al Reem Island.
Jassim Al Seddiqi was appointed as the chairman of Eshraq Properties last year. He is also the managing director and chief executive of Abu Dhabi Financial Group.
