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Dubai: Nakheel has instructed the repayment of Dh2.35 billion in bank debt 18 months ahead of schedule.
The company said that the early repayment is part of a Dh6.8 billion debt due in September 2015.
The repayment reflects the company’s strong financial performance since its restructuring, as well as the strength of the local real estate market and improving economic conditions in the UAE. It also highlights investors’ growing confidence in Nakheel.
Ali Rashid Lootah, chairman of Nakheel, said that the developer continues to successfully meet, and sometimes outperform, commitments in its post-restructuring business plan.
“The early repayment serves as yet another evidence of the company’s strong financial performance since the restructuring in August 2011,” Lootah said.
“The early repayment was possible thanks to the delivery of thousands of residential units to customers, bringing down costs, the support of the wise Dubai government, and confidence and trust shown by investors and partners,” he added.
Lootah expressed his profound thanks and gratitude to everyone for their patience and confidence in Nakheel.
Since the restructuring plan, the developer was able to revive 10 projects as part of the short-term restructuring plan, which boosted the local real estate market and economy and provided local contracting companies with the opportunity to resume their construction operations in Dubai.
Nakheel also delivered 8,000 residential units from various projects to customers, and was able to repay Dh13 billion to contractors and suppliers, Dh1 billion in bank interest, and Dh1 billion in profit to sukuk holders. Nakheel was able to save approximately Dh23 billion, outperforming its post-restructuring plan.
Nakheel launched new projects to revive the company’s core business of property development. Currently, there are more than 4,000 units with an estimated current sale value of Dh13 billion in the development pipeline, with the first handovers of completed units due this year. The developer diversified into the hospitality and leisure sector, with a current plan to develop nine hotels over the next three to five years, with the first hotel due to open this year.
Source: Staff Report, gulfnews.com