Amlak Finance Plans Strategic Exit from Real Estate Portfolio
Amlak Finance PJSC announces a strategic shift with plans to exit its real estate finance portfolio, aiming to offset accumulated losses.
Summary
Amlak Finance PJSC is set to exit its real estate finance portfolio to offset accumulated losses, marking a significant strategic shift for the company.
Amlak Finance PJSC, a leading finance company in the United Arab Emirates, has announced a pivotal move that could reshape its business landscape. The company has invited its shareholders to a General Meeting on June 30, 2025, to discuss two special resolutions that could have far-reaching implications for its financial strategy.
One of the key resolutions on the agenda is the approval to transfer the balance of the legal and special reserves, amounting to AED 307,392,000 and AED 99,265,000 respectively, to partially offset accumulated losses as of December 31, 2024. This move requires approval from relevant authorities and is seen as a step towards stabilizing the company's financial health.
The second resolution, however, is the more transformative one. Amlak Finance is considering a strategic exit from its real estate finance portfolio. This exit could be executed through various means, including the sale of financing contracts to other financial institutions and exiting contracts through mutual agreements with customers. The Board of Directors, or an authorized person, will be empowered to approve these transactions and offer necessary discounts or waivers.
This decision marks a significant shift in Amlak's business strategy, focusing on reducing its exposure to the real estate sector, which has been volatile in recent years. By offloading its real estate finance portfolio, Amlak aims to streamline its operations and focus on more stable and potentially lucrative financing avenues.
For investors, these resolutions present a mixed bag of opportunities and risks. On one hand, the move to offset losses and streamline operations is a positive step towards financial stability. On the other hand, exiting the real estate finance sector could reduce revenue streams in the short term, depending on how well the transition is managed.
Given the current scenario, investors might consider a 'hold' position on Amlak Finance. The company's strategic decisions are aimed at long-term stability, but the immediate impact on financials and the success of the portfolio exit remain uncertain. Monitoring the outcomes of the General Meeting and subsequent actions by the company will be crucial for making informed investment decisions.
Source
Summary
The Board of Directors of Amlak Finance PJSC invites its shareholders to attend a General Meeting on June 30, 2025, at 3:00 PM, either remotely or in person at Kempinski the Boulevard, Downtown Dubai. The meeting will discuss two special resolutions: 1. Approval to transfer the legal and special reserve balances, totaling AED 307,392,000 and AED 99,265,000 respectively as of December 31, 2024, to partially offset accumulated losses, pending regulatory approval. 2. Approval of a strategic decision to exit the company's real estate finance portfolio through various means, including selling financing contracts to other institutions and exiting contracts through mutual agreements with customers. The Board, or an authorized person, is empowered to approve such transactions and offer necessary discounts and waivers. Shareholders can register to attend electronically from June 27, 2025, at 10 AM until June 30, 2025, at 10 AM via www.smartagm.ae. Shareholders may delegate someone to attend on their behalf, excluding Directors, through a written proxy. A proxy cannot represent more than 5% of the company's share capital. Minors or legally incapacitated shareholders must be represented by their legal representatives. The proxy signature must be approved by a recognized entity.
