Nakheel H1 profits rise 53%

Developer made Dh2.83b compared to Dh1.85b in the same period last yearImage Credit: Supplied

Nakheel reported on Monday a 53 per cent increase in net profit for the first six months of the year, largely due to a strong performance in its development business.

The Dubai developer made Dh2.83 billion over the six months ending June 30, 2015 compared to the Dh1.85 billion it reported for the same period a year earlier, according to an emailed statement.

Nakheel, whose master developments include Palm Jumeirah, The World and Jumeirah Village, said it saw profits increase as it continued to hand over properties to customers.

“The company’s growing retail, leasing and leisure businesses also contributed to the overall financial results for [the first half of] 2015,” the statement said.

Nakheel did not state other financial performance details including revenue for the first six months of the year.

“We have achieved a significant increase in our net profit for the first half of 2015 compared to the same period in 2014. We will build on these results during the second half of this year, and remain committed to playing a key role in contributing positively and effectively to Dubai’s real estate sector,” stated Nakheel Chairman Ali Rashid Lootah.

Nakheel said going forward it will continue to focus on creating more cash-generating assets to further boost its business and financial results.

“Nakheel continues to focus on completing various development projects currently under construction, as well as expanding its retail, hospitality and residential leasing projects to further contribute to the growth in Dubai’s real estate market and to further strengthen the overall financial position of the company,” it said.

Earlier this month, Nakheel said that footfall at flagship Ibn Battuta Mall, which it owns and operates, rose 25 per cent over Ramadan. The mall welcomed up to 60,000 people a day on its busiest days, compared to around 48,000 during Ramadan 2014. Nakheel is currently expanding Ibn Battuta Mall into a “giant retail and entertainment complex” that will feature more than 1,000 shops, two multi-screen cinemas and a large courtyard with a retractable roof

In June, Nakheel awarded a Dh387-million contract to marine engineering contractor Van Oord to deliver 23.5 kilometres of coastline and breakwaters at Deira Islands. And in May it confirmed close to 100 restaurants and shops at The Pointe, Nakheel’s new Dh800 million development on Palm Jumeirah. The same month Nakheel announced that Landmark Group had signed on to operate over 25 of its brands at mall Al Khail Avenue, which will be at Jumeirah Village.

Nakheel is also expanding Dragon City, previously Dragon Mart, developing hotels at Palm Jumeirah, Deira Islands, Ibn Battuta Mall and Dragon City. It’s existing and pipeline retail projects cover more than 13 million square feet of leasable space, Nakheel said.

Source: Staff Report


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