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With the project’s finish line now just 14 months away, overall expenditure — including on the land acquisition — on the massive Dubai Parks and Resorts master-development crossed Dh3.8 billion as of end June, according to the latest filings by the public-listed entity. Costs racked up during the second quarter alone on the theme park in the making came to Dh800 million.
As of the second quarter, 80 per cent of the procurement requirements are complete, while that on the project infrastructure is 57 per cent.
“Our second quarter 2015 financial results are in line with our plans,” said Raed Al Nuami, CEO. During this period, “There were no operating revenues and the loss was Dh29 million for the period ended June 30.” (Its total assets were Dh7 billion at the end of the second quarter.)
The developer reiterated that the first revenues will come into its till towards the end of 2016, after the scheduled opening of the gates in October of that year. It estimates the first full year of operations to deliver Dh2.4 billion by way of ticket sales and ancillary revenues.
Apart from full-on construction schedules — with 9,000 workers — on-site, located off the Jebel Ali highway, Dubai Parks and Resorts kept topping up its entertainment and marketing options for the park.
“In April, we announced our first revenue generating deal with Picsolve International to create one of the world’s largest photography integrations which is expected to generate over Dh100 million over a five-year period,” said Al Nuaimi.
“Our integration into the existing Dubai tourism infrastructure became more pronounced this quarter as we signed a memorandum of understanding with dnata to be the preferred travel partner. This is an important agreement as it connects Dubai Parks and Resorts with dnata’s extensive travel portfolio to promote the sale and distribution of tickets and visitor packages to customers across the globe.”
Another progress area relates to the launch of leasing at its retail and leisure hub, Riverland Dubai. It is one of the six components making up the destination, and “will be the main grand entrance to the destination as well as the central meeting point for visitors from all of our parks.” It will have more than 50 outlets. “Already, we have signed four lease proposals, accounting for 7 per cent of the total leasable space in the short time since our announcement,” said Al Nuaimi.
Source: Manoj Nair, Associate Editor, gulfnews.com