Tejoori to dispose of its remaining Arjan plot

Investment company Tejoori entered a memorandum of understanding with Mr Mohammad Ali Abdulla to dispose of its remaining Arjan plot of land for $5.8m.

The agreement was made on 31 December 2016, which is expected to be completed within 60 days.

Tejoori said it currently owns the Arjan plot, which comprises one plot of land in Al Barsha South Third in Arjan, a commercial and residential property community development in Dubai, UAE.

Tejoori acquired this plot in December 2012 along with two other Arjan plots.

In May 2016, the company sold one of the three Arjan plots of land for $6.5m.

On 22 December, Tejoori completed the sale of the second Arjan Plot for $3.7m.

The Arjan plot subject to disposal had a book value of $4.14m in Tejoori's accounts as of 30 June 2016 and a total ground floor area of approximately 355,209 square feet.

No development took place on the plot to date. In the published accounts for the year to 30 June, the three plots owned by Tejoori during the financial period did not contribute any revenue to Tejoori.

The plots incurred a loss on revaluation of $2,901,592 and realised a loss on sale of property of $180,747.

The consideration for the disposal under the agreement is a cash consideration of 21,312,540 dirhams (approximately $5,802,330 at the exchange rate on 4 January 2017) payable on completion of the disposal.

Tejoori said the disposal was conditional on receiving necessary approvals from the Dubai Land Department, the transfer of the title deeds to the buyer being effected and receipt of the cash from the buyer.

Following completion of the disposal, the company will have no ownership in any of the Arjan plots and will have disposed of its entire investment portfolio.

Management said it intends to use net proceeds from the disposal, which are estimated to be approximately $5.7m, to provide additional working capital and to supplement intended return of cash to shareholders.

At 11:26am: (LON:TJI) Tejoori Limited share price was +0.06p at 0.39p