Drake & Scull continues its restructuring programme

23 March 2017

The company has announced it plans to sell its shares in the One Palm project

Dubai-listed Drake & Scull International (DSI) has announced it is selling its stake in the One Palm development in Dubai.

In a company statement, the contractor has said it will sell its share of the project to Dubai developer Omniyat Properties for AED300m ($81m).

In 2014, the two companies formed a partnership to develop the project, located on the Palm Jumeirah.

The 25-storey tower has 90 apartments, swimming pools, a cinema, and a yacht club.

The building is designed by Soma from New York. Super Potato from Japan is the interior designer and Vladimir Djurovic from Lebanon is the landscape architect.

The statement from DSI says that the selling of its share is part of the company’s capital restructuring plan that was initiated at the end of last year. ”The company is progressing steadily with its divestment programme and will continue pursue the disposal and monetisation of its non-core assets and non-performing subsidiaries to generate cash for the business,” said the statement.

In February this year MEED reported that the company secured a binding offer from a UAE strategic investor to inject AED500m ($136m) into the company.

The UAE’s Tabarak Investment has made the offer, which is subject to the approval of DSI’s shareholders and the Emirates Securities and Commodities Authority (SCA).

For its 2016 preliminary un-audited annual results the company reported a net loss of AED787m, compared to a net loss of AED939m for fiscal 2015. Revenue was AED3.2bn for the year, compared to AED4.2bn for 2015.

The company is working with PwC on its turnaround strategy. 

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