Dubai: Nakheel half-year profit rises 54% to Dh1.85b

Dubai: Nakheel half-year profit rises 54% to Dh1.85bImage Credit: Supplied

Nakheel announced a net profit of Dh1.85 billion for the first half of the year, an increase of 54 per cent on a net profit of Dhl.2 billion in the same period last year.

Strong revenue from property development, together with improving performance in Nakheel's retail, leasing and leisure businesses, contributed to the robust results, the company said. The announcement was made two weeks after the developer said it will prepay its Dh7.9 billion bank debt in August this year - nearly four years ahead of the last installment due in March2018.

During the first six months of the year, Nakheel handed over 627 units to customers, while the retail and leasing businesses witnessed almost full occupancy. Nakheel also said its leisure business saw an improved performance on previous years.

''These robust financial results re1lect the growth witnessed in the real estate sector in Dubai, where Nakheel continues to play a strategic role,'' said Ali Rashid Lootah, Chairman of Nakheel. ''Since the financial year ending 2010, Nakheel has reported a year-on-year increase in net profit.

''Our financial performance reflects the strength of the underlying business, increasing investor trust and confidence in Nakheel and the ongoing support of the government of Dubai.''

Meanwhile, Nakheel signed a Dhl.2-billion construction contract for Nakheel Mall the new centerpiece project on Palm Jumeirah.

The contract to build the 418,000-sq-m mall was cemented at a signing ceremony between Nakheel and UAE firms United Engineering Construction and Actco General Contracting Company, which were jointly named as the project contractors in May.

The project is expected to be completed in 2016.

Nakheel is also developing other new projects in the residential, retail, leasing and hospitality sectors.

Among them are The Pointe, Deira Islands Mall, Deira Islands Night Souk, extensions to Dragon Mart and Ibn Battuta Mall, community retail centres at Jumeirah Park, Al Furjan, International City, Discovery Gardens and Badrah, residential and retail leasing units at Warsan Village and a new community of 1,000 villas for lease.

Source: Property Weekly


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