Amlak Finance buys 80 per cent of Sky Gardens tower at DIFC for Dh1.65 billion

The purchase came after Al Mazaya resolved pending issues with DIFC. (SUPPLIED)

Dubai-based Islamic mortgage provider Amlak Finance and Kuwaiti real estate developer Al Mazaya Holding yesterday signed an agreement to purchase 80 per cent of the Sky Gardens tower at Dubai International Financial Centre (DIFC) for Dh1.65 billion.

The move comes after Emirates Business reported on Monday that Al Mazaya had resolved all pending issues with DIFC, which led to the conclusion of the deal.

Commenting on the signing of the agreement, Arif Alharmi, Chief Executive Officer, Amlak Finance, said: "We have now decided to move ahead with the definitive agreement of this remarkable architectural masterpiece.

"From our perspective all pending issues were cleared with the assistance of the DIFC, paving the way for this transaction to be finally concluded. I would like to thank all the parties involved in this project for their co-operation."

The agreement has been as per the terms of the memorandum of understanding signed by Al Mazaya and Amlak Finance on May 1 and the penalty clause has not been enforced, two people familiar with the deal told Emirates Business.

On June 2, Amlak Finance had said it stands firm on receiving Dh82 million in penalty in addition to the Dh82m down payment it made for the Sky Gardens tower within seven days of its claim made on June 1.

"The seller has failed to execute the definite agreement and has therefore failed to complete the transaction as provided in the memorandum of understanding. Amlak has no option but to refer the matter to appropriate legal authorities should the seller fail to make payment," it had said.

Khalid Esbaitah, Chief Executive Officer and Managing Director, Mazaya Holding, said: "The transaction has been successfully completed, and we are looking towards cementing a long-term relationship with Amlak Finance with the objective of entering into future accords."

Esbaitah said they have made no loss on the deal and following the completion of the transaction, Al Mazaya and its subsidiary – First Dubai Real Estate Development Company – will reap operational profits that will be accounted in the next 18 months.

Amlak Finance has said the dispute will not impact its forecasted growth, since the profits anticipated from this transaction were not budgeted for the year.