DUBAI: Dubai’s third-largest traded real estate company Deyaar Development Co said 7th may that a deal to develop projects with India’s Ansal Properties & Infrastructure has been canceled.
“The memorandum of understanding between Deyaar and Ansal Properties to develop a project in India has been terminated by mutual consent,” Nasser al-Sheikh said in a statement on the Dubai bourse website.
The announcement comes amid a financial investigation into alleged embezzlement at the company, which has already led to the detention of it’s former chief executive Zack Shahin and three other people in connection with the probe. Deyaar shares closed flat at 2.37 UAE dirhams ($0.64), after falling intraday to 2.31 dirhams. The stock is down almost twenty per cent this year.
Ansal shares ended down 0.7 per cent to Rs172.95 on the Bombay Stock Exchange. Termination of the agreement came into effect from 7th may, Deyaar said in the statement.
Deyaar had granted to take up to forty per cent stake in a project to develop a township comprising of residential and commercial real estate in India, as par an Ansal disclosure previous year posted on the Bombay Stock Exchange website.
The company, which said in November it was thinking over a five billion dollar real estate project in India, added that it still plans enter the market and is in discussions with other prospective associates.