- City Fajr Shuruq Duhr Asr Magrib Isha
- Dubai 05:28 06:46 12:12 15:10 17:32 18:51
(SATISH KUMAR) | |
Leisure Canada, a Vancouver-based developer of luxury resorts in Cuba, said its board has approved a deal to sell 46 per cent of the company to Profile Investments, a firm based in Dubai. The two-step transaction, announced on Friday, is valued at C$20 million (Dh74m).
Under the deal, Leisure will issue 60m shares and half-warrant units to Profile at 25 cents each to raise C$15m (Dh55.5m). In addition, Profile and affiliates have agreed to invest C$5m (Dh18.5m) in the company’s operating subsidiary, Wilton Properties.
Profile Investments is an investment company with global interests in real estate and related services.
“This agreement will provide Leisure Canada with the backing of a vertically integrated global real estate developer,” said Walter Berukoff, executive chairman of the Canadian developer. “All of the elements are now in place to accelerate development of our world-class asset base in Cuba and become that nation’s premier hospitality and real estate development company.”
Profile Investments is a member of the Profile Group, which has substantial interests in Dubai, including projects on the Waterfront and The World development of manmade islands. Its interests range from real estate consulting and engineering, design and architecture as well as partnerships with global real estate sales and development operations.
The group is active in the UAE, Oman, Morocco, Spain and Cape Verde. In Dubai, its projects include five residential towers at Dubai Sports City; 12 residential, commercial and hotel towers at Dubai Waterfront; 10 residential buildings in International City (pictured above); four buildings in Dubailand; the development of the Island of Thailand on The World into a spa and residential resort; development of the Island of Ireland as an up-market retreat; and six villas in Emirates Hills.
The transaction envisions Profile and its associates buying 46 per cent of Leisure Canada’s issued capital on a fully diluted basis at the time of closing. This will result in the issuance of 60m units at 25 cents each for aggregate proceeds of C$15m. Each unit would be composed of one class ‘A’ share (common share) plus one-half warrant.
One full warrant would entitle the holder to purchase one additional common share of Leisure Canada for a period of 24 months after the closing date at a price of 35 cents per warrant share. The company will extend the term of the warrants for a further 24 months at an exercise price of 40 cents in the third year and 45 cents in the fourth.
Profile and its associates will also acquire a 25 per cent holding of the outstanding capital of Wilton by means of the subscription of new shares in Wilton for C$5m. Two Profile directors will sit on the Leisure Canada board, while Berukoff remains as chairman for at least the next five years.
Hanif Patel, founder and chairman of the Profile Group, said his company is “extremely excited about the synergies that will arise from this investment”.
“We can help them market their products and, at the same time, offer this exotic market to our client base of more than 30,000 investors.
With almost C$20m in new capital, and with further capital injections planned, Leisure Canada will be extremely well positioned to complete existing projects and acquire new assets in Cuba,” he added. The transaction is scheduled to close on February 29. |
Follow Emirates 24|7 on Google News.