DSI sells share in One Palm to Omniyat



Drake & Scull International (DSI), the Dubai-based contractor, yesterday said it sold its ownership share in the One Palm residential real estate development in Dubai to luxury developer Omniyat Properties for Dh300 million.

The struggling construction company said in a statement it would continue to sell non-core assets and non-performing subsidiaries to generate cash for its business.

“This transaction marks an important milestone in the Drake & Scull International turnaround and capital restructuring plan that was initiated in the fourth quarter of 2016,” the company said.

“The company is progressing steadily with its divestment programme and will continue to pursue the disposal and monetisation of its non-core assets and non-performing subsidiaries to generate cash for the business.”

Settlement of the sale of DSI’s share in One Palm will be completed in phases during this year, it said. The first phase of the payment plan, the size of which was not disclosed, has been approved and will be disbursed this month. Subsequent payments will be announced upon finalisation, the company said.

DSI, which specialises in mechanical, electrical and plumbing work, said last month that it had secured a commitment from Dubai-based investment bank Tabarak Investment to inject Dh500m into the company as part of a capital restructuring plan.

That commitment will be discussed at DSI’s annual general meeting of its shareholders next month where it is expected that this measure along with a number of others will be approved, the company said.

DSI said earlier this year that losses for the fourth quarter of 2016 widened to Dh490m, compared with a loss of Dh14.7m a year earlier. Revenue shrank to Dh3.24 billion last year from Dh4.2bn in 2015. Its loss last year, however, shrank to Dh786.9m from Dh938.8m in 2015.

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  • 2018: Formal work begins
  • November 2021: First 17 volumes launched 
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