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Dubai Parks and Resorts crossed the Dh3 billion mark in its cumulative project-related spend as of the end of March. This is according to a statement issued by the company providing construction updates and the developer’s financial position in the first quarter. The figure compares with the Dh2.6 billion during the last reporting period.
The three-month period also saw the company record a loss of Dh13 million, with the first revenues due to come in only in the second half of 2016, when it would have opened the destination. (The company recorded a net loss of Dh26 million in 2014.) “We are on track to invest a cumulative Dh5.9 billion by year-end as outlined in our first quarter statement,” said the company’s CEO, Raeed Al Nuaimi, in an emailed statement. He maintained the company’s often-stated position that it would not require any additional funding over and above what it had raised to date. This includes the Dh4.2 billion syndicated loan facility and the Dh2.5 billion raised via the share float on Dubai Financial Market late last year.
On whether there was any change to the company’s projection of reaching profitability in 2018, Al Nuaimi said: “Yes, we remain on track both financially and operationally as outlined in our prospectus of last year.”
In line with plans
“Projected revenue in the first full year of operation is estimated at Dh2.4 billion with over 5,000 jobs generated across the sector.
“Our first quarter 2015 financial results are in line with our plans — Our total assets stood at Dh6.9 billion as at the end of first quarter.
“There were no operating revenues and the loss was Dh13 million during the first quarter 2015. The first revenues are expected towards the end of 2016 following the opening of the parks to the public.”
On the project side, 67 per cent of the procurement activities are complete, while the figure for project infrastructure is 42 per cent, and for ride engineering and manufacturing it is 40 per cent.
The company’s trade and other payables come to Dh648.44 million. (Advances to contractors and prepayments were Dh424.1 million.) “It is clear there is an untapped market with no existing multi-themed park destination on offer in the Middle East,” said Al Nuaimi. “Dubai is not only attracting a growing population but is expected to attract 20 million visitors per year by 2020.
“We have an equally busy year ahead as we come closer to the realisation of our vision.”
Source: Manoj Nair, Associate Editor, gulfnews.com