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Dubai developer Nakheel will settle its entire Dh7.9-billion debt to bank lenders in August, nearly four years before the final loan installment is due in March 2018, the company has revealed.
Nakheel's scheduled prepayment of Dh5.54 billion in August will come six months after its previous early repayment in February, when the company paid off Dh2.35 billion of its bank loan.
''This is perhaps the most significant milestone in the history of Nakheel and is a true testament to the support and guidance of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and the trust and faith that he and the government of Dubai have placed in our company,'' said Ali Rashid Lootah, Chairman of Nakheel. '''Without it, we would simply not be in the position we are in today.
''Nakheel is also ever thankful and grateful to the lenders, investors, business partners and regulatory authorities who placed their trust and confidence in our company, supporting us throughout this challenging time. They have played a key role in our success since the implementation of our post restructuring business plan began in August 2011.
The company said it is able to prepay all of its bank debt ahead of schedule due to savings of around Dh23 billion on its business plan, achieved through vastly improved cash flows generated from property handovers, sales of new projects, leasing, retail, value engineering of ongoing projects and amicable settlement with the majority of trade creditors.
Yearly profit growth
''It is now four years since the new Board of Nakheel was appointed. During this time, Nakheel has achieved what some considered impossible: completion of one of the largest, most complex financial restructuring exercises followed by the successful execution of a new business plan that has placed us on a path to new growth.'' said Lootah. ''We are delivering on, and in some cases outperforming, the targets set out in our business plan.
''Our achievements of year-on-year profit growth, contractor and customer settlements and a number of successful new project launches are concrete evidence of investor trust in Nakheel.''
The company said it has met the targets set out in its business plan within three years, ahead of the scheduled five-year implementation programme. Moreover, it has reported year-on-year profit growth in the past four years, registering Dh963 million in 2010, Dh13 billion in 2011, Dh2.02 billion in 2012 and Dh2.57 billion last year.
Source: Property Weekly