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29 March 2024

Nakheel profit jumps 58% to Dh1.77bn

Published
By Staff

Nakheel made a net profit of Dh1.77 billion in the first nine months of 2013 compared to Dh1.12 billion for the same period last year, registering an increase of 58 per cent.

Revenues as of Q3 2013 stood at Dh6.83 billion compared to Dh4.54 billion in Q3 2012, up by 50 per cent, the company announced on Monday.

The improved financial performance demonstrates the return of investor confidence and trust in Nakheel and its projects, further highlighted by strong customer interest in Nakheel’s recently launched projects, in which sales have far exceeded expectations.

Among them: a record sale of Nakheel’s Legacy Nova villas at Jumeirah Park, with a sales value of Dh1.7 billion achieved in one day. This together with other factors had a significant favourable impact on the cash flows generated by Nakheel in the period up to Q3 2013.

2013 continues to be a hive of activity for Nakheel, with continued customer hand overs and on-going construction of an increasing number of residential and retail projects. Handover of properties was the main contributor to Nakheel’s strong revenue numbers, with continued positive and encouraging contributions from the company’s retail, leasing and leisure business units.

Nakheel continues to complete its near term projects and has now delivered around 6,700 properties – including around 2,200 in 2013 alone—since completing its restructuring in August 2011. The company is on course to deliver an estimated 3,000 units in 2013. The majority of handovers took place in residential developments in Palm Jumeirah, Al Furjan, International City, Jumeirah Village, Jumeirah Park and Jumeirah Heights. 

There is a strong pipeline of Nakheel projects under development across the residential, retail, leisure and hospitality sectors aimed at creating a long term sustainable business and increasing the pool of cash generating assets.

By the end of September 30, 2013, Nakheel’s new development pipeline included almost 2,800 new units at an estimated sales value of Dh8.5 billion across a number of communities; approximately 3.6 million square feet of net leasable retail space with an estimated investment of Dh6 billion and more than 1,200 rooms in the hospitality sector with an approximate investment of Dh1.5 billion.

Among the new developments are Nakheel Mall and Hotel, The Pointe at Palm Jumeirah, the extension of Dragon Mart and Ibn Battuta Mall, and residential projects including Palma Residences, Palm Views, Jumeirah Park, Jumeirah Islands, Jumeirah Village, Warsan Village, a new phase of Al Furjan, and community centres at Discovery Gardens, Jumeirah Park, Al Furjan and International City. 

Nakheel is also evaluating a number of additional projects to add value to its existing communities with the aim of creating a more sustainable and long term viable business post restructuring.

Amidst all these development activities Nakheel has continued to fulfil all of its restructuring commitments to all its stakeholders. Since restructuring in August 2011, Nakheel has paid almost Dh1.5 billion in loan interest and sukuk profit payments. The company has also made cash payments of around Dh12 billion to trade creditors and contractors during this period, providing vital support for the local construction and real estate sector in Dubai.